As cannabis retail grows into a multi-billion-dollar industry, dispensaries are racing to build loyalty programs that engage customers and keep them coming back. A compelling idea is to integrate cannabis rewards cards with mainstream digital wallets like Apple Pay and Google Wallet. While the potential for convenience and increased engagement is huge, is it actually feasible—and what impact could it have on cannabis retail?
Feasibility: Legal and Technical Barriers
The primary challenge is legal. Despite cannabis being legal in dozens of U.S. states, it remains illegal federally. Tech giants like Apple and Google follow federal laws and stringent compliance policies. Historically, they’ve avoided services directly related to cannabis transactions. For example, until 2021, Google Play’s policies explicitly prohibited cannabis-related apps, and while this has relaxed slightly, wallet-level integration—especially tied to a federally restricted substance—poses significant risk.
Moreover, integrating loyalty programs into wallets would require syncing complex POS and compliance systems from dispensaries with secure wallet infrastructure. Cannabis loyalty programs depend on state-specific regulations for purchase tracking, age verification, and purchase limits. Creating secure API connections between wallets and diverse dispensary POS systems like Dutchie, Treez, or Flowhub would add layers of technical and regulatory complexity.
Potential Impact: Frictionless Loyalty
If the hurdles were cleared, the impact on customer experience could be transformative. Currently, customers often have to carry physical punch cards, download dispensary-specific apps, or remember to enter phone numbers at checkout to earn or redeem rewards. Integrating loyalty cards into Apple Pay and Google Wallet would make the process seamless: customers could automatically accrue and redeem points by simply tapping their phone during checkout, with real-time updates visible in their digital wallet.
This frictionless process could drive higher redemption rates and encourage larger purchases. A Klarna study found 76% of shoppers say an easy-to-use loyalty program makes them more likely to return, suggesting mainstream wallet integration could be a powerful retention tool.
Additionally, digital wallets can enable dynamic rewards: dispensaries could push exclusive offers, flash sales, or birthday discounts directly to wallet passes—reaching customers right where they manage payment cards, tickets, and transit passes. Coupled with behavioral data, dispensaries could personalize offers to drive loyalty further.
Competitive Advantage: First-Mover Opportunities
Dispensaries able to secure digital wallet integration would enjoy a significant competitive edge. Consumers increasingly expect modern, convenient experiences; a rewards card stored alongside airline tickets or Starbucks gift cards would meet those expectations. According to PYMNTS.com, 60% of digital wallet users prefer merchants offering loyalty integration within wallets, suggesting early adopters in cannabis retail could stand out sharply.
However, Apple and Google’s hesitancy leaves space for third-party players. Cannabis fintech companies like AeroPay or KindTap could offer partial solutions—such as prepaid cannabis gift cards or rewards balances that can live in wallets without direct cannabis transactions, skirting legal gray areas while enhancing convenience.
Looking Ahead
While current federal laws make broad integration unlikely in the immediate future, dispensaries should prepare now. Investing in modern loyalty and POS systems compatible with wallet technology could put retailers ahead of the curve if federal reform opens the door. Those who do will be best positioned to win the loyalty of tech-savvy cannabis consumers who increasingly demand seamless, mobile-first experiences.