In cannabis retail, loyalty programs are one of the most effective ways to drive repeat visits and increase customer lifetime value. But the way you deliver loyalty messaging matters just as much as the rewards themselves. Two of the most common approaches are SMS campaigns and wallet-pass programs like Happy Cards.
In this post, we’ll break down the differences between cannabis wallet pass loyalty vs SMS, and explain why wallet-pass technology is quickly becoming the go-to solution for dispensaries.
SMS Loyalty Programs: Pros & Cons
How it works:
Customers opt in to receive promotional texts, reward updates, and reminders directly to their phone.
Benefits
Widespread familiarity: Nearly every customer knows how SMS works.
Instant reach: Messages appear in real-time on customer phones.
Direct link to offers: Texts can include URLs for menus, rewards, or discounts.
Drawbacks
Carrier restrictions: Cannabis SMS campaigns often get blocked or flagged.
High costs: Per-message fees add up quickly at scale.
Customer fatigue: Too many texts can annoy users, leading to opt-outs.
Approval delays: 10DLC registration and carrier compliance slow down campaigns.
Happy Cards Wallet-Pass Loyalty: How It Works
How it works:
Instead of relying on SMS, Happy Cards loyalty programs use Apple Wallet or Google Wallet passes. Customers add a digital loyalty card to their phone, which updates automatically and enables push notifications without SMS.
Benefits
No SMS approvals needed: Push notifications bypass carrier restrictions.
Cost-efficient: No per-message fees-unlimited notifications at no extra cost.
Always updated: Wallet passes show real-time points, visit counts, and rewards.
Simple onboarding: Customers scan a QR code or click a link to join instantly.
Personalized experience: Targeted push alerts make messages more relevant.
Considerations
Awareness: Some customers may not be familiar with wallet passes.
Device limits: Works best on smartphones with wallet functionality (Apple or Android).
Cannabis Wallet Pass Loyalty vs SMS: Side-by-Side
Feature | SMS Loyalty | Wallet-Pass Loyalty (Happy Cards) |
|---|---|---|
Compliance | Often blocked or delayed by carriers | No carrier restrictions |
Cost | Per-message fees | Flat, included in platform |
Customer Experience | Text inbox clutter, opt-out risk | Seamless, real-time wallet updates |
Engagement | Easy to ignore | Push notifications on lock screen |
Onboarding | Requires opt-in and phone number | Simple QR code or link |
Best Practices for Choosing Between SMS and Wallet-Pass
Check Your Market Regulations
Some states heavily restrict cannabis SMS messaging, making wallet passes the safer option.Focus on Cost Efficiency
If you’re sending frequent promotions, wallet passes eliminate the recurring SMS bill.Think About Customer Experience
Wallet passes provide a cleaner, app-free way for customers to track rewards without message fatigue.Combine Both (If Needed)
For broad awareness campaigns, SMS still works. For loyalty engagement, wallet passes are the smarter long-term play.
Final Thoughts
When comparing cannabis wallet pass loyalty vs SMS, the wallet-pass model offers better compliance, lower costs, and a more seamless customer experience. While SMS may still have a place in certain campaigns, Happy Cards wallet-pass loyalty programs give dispensaries a powerful edge in building long-term customer relationships.
