Tech Before Congress:
How Cannabis Payments Are Evolving Without Federal Help

The Banking Problem Hasn't Gone Away

Despite President Trump's executive order directing cannabis rescheduling to Schedule III, legal analysts and fintech experts agree on one point: don't wait for the big banks. While rescheduling eases some regulatory burdens, it does not constitute legalization — and major financial institutions will remain firmly on the sidelines until explicit federal safe harbor protections are enacted.

• Schedule III compliance costs rise — Rescheduling brings heightened scrutiny around recordkeeping, anti-money laundering controls, and beneficial ownership transparency, requiring deeper documentation before banks onboard cannabis clients.
• Cannabis proceeds remain "high-risk" — Major banks continue to classify cannabis transactions as carrying significant federal compliance risk, regardless of state legality.
• Credit cards still largely unavailable — Without the SAFE Banking Act, consumers cannot use Visa or Mastercard at most dispensaries, keeping cannabis a predominantly cash-based retail sector.

The Tech-First Revolution: What's Actually Working

What makes 2026 different isn't a shift in legality — it's a shift in capability. After years of patchwork approaches, purpose-built financial technology has finally caught up to cannabis's unique compliance requirements.

Why Cash Is Killing Profitability

Cash isn't just inconvenient — it's expensive. The hidden cost of being a cash-heavy business compounds across every level of the operation:

The Operators Already Winning on Payments

Ascend Wellness is the most prominent example of a large MSO going all-in on tech-first payments. Its Q1 2026 platform rollout includes Ascend Pay — a pay-by-bank solution integrated directly into its redesigned e-commerce app — alongside AI-driven loyalty rewards and personalization.

• Over 70% of cannabis searches now happen on a smartphone — a payment experience optimized for mobile is no longer optional for competitive dispensaries.
• Email and loyalty CRM campaigns that include integrated payment links are generating reported ROI of 10–20x for operators using compliant marketing platforms.
• Over 76% of dispensary customers research online before visiting a physical store — a seamless digital-to-in-store payment journey is a decisive conversion lever.
• The PBC (Payments, Banking & Cannabis) Conference is scheduled for September 9–10, 2026, at the Capital Hilton in Washington D.C. — a key industry gathering for banking and payments professionals.

What to Watch in 2026

• If Schedule III rescheduling is finalized, marketing expenses become tax-deductible under 280E removal — unlocking the ability to reinvest more aggressively in digital payment and commerce infrastructure.
• The "cashless ATM" (PIN debit workaround) model faces increasing scrutiny from Visa and Mastercard; operators relying on it should begin migrating to compliant alternatives now.
• Multi-cloud, shutdown-proof payment infrastructure is emerging as a competitive differentiator — account closures by banks or processors remain a real operational risk.