ELECTRONIC BANKING SOLUTIONS

A new phone application from a company based out of Littleton has big dreams of aiding the cannabis industry’s cash problem. The CanPay Debit Payment App is a phone application that allows cannabis purchasers in Colorado, Oregon and Washington to pay for cannabis and cannabis products using their phone. The money is transferred from the payees’ bank account and gets deposited into cannabis retail businesses’ bank accounts.

CanPay’s website shares why the company started. “CanPay started with one goal—to bring traditional and legitimate electronic payment solutions to highly-regulated industries. We’ve spent years learning about the unique challenges that face consumers and retailers in these industries and used that experience to design CanPay as the stable payment solution they can rely on.”

“There are no convenience fees or any other fees associated with paying with CanPay for consumers, which beats paying a fee to withdraw cash at an ATM. It’s safer than carrying cash, and it allows a person to purchase cannabis without having to visit the bank first.”

Large banks and credit unions in the United States and many other countries largely refuse to work with cannabis businesses for fear of negative repercussions from the federal government, given the substance is still illegal on the federal level. This has caused trouble for those in the industry, because being forced to run a successful business with so much cash on hand makes cannabis businesses a target for criminals.

CanPay sets out to fix that problem, and their application makes it pretty simple and straightforward for both the consumer and the retailers. There are no convenience fees or any other fees associated with paying with CanPay for consumers, which beats paying a fee to withdraw cash at an ATM. It’s safer than carrying cash, and it allows a person to purchase cannabis without having to visit the bank first. The application is easy to use and secure, as the user can make a unique payment pin to protect their account.

Retailers will also benefit from the CanPay system. Its site explains the frustrations many retail businesses are currently facing. “You’ve finally opened a bank account with a financial institution that is willing to bank your industry through a robust compliance program but when it comes to accepting payments from your customers, you can still only accept cash.” Customers typically prefer to pay electronically, however many cannabis businesses cannot open the merchant accounts necessary to accept credit card payments.

“CanPay started with one goal—to bring traditional and legitimate electronic payment solutions to highly-regulated industries.”

By using CanPay, retailers can avoid this issue and offer their customers a more convenient way to pay. Retailers can do business in their DBA name when using CanPay, and it’s an inexpensive option. Not only will a retail location become safer with less cash on hand, but customers have been proven to spend more money when they do so electronically.

There are currently 10 retailers that have signed onboard the CanPay system, four of which are based in Colorado. It’s only a matter of time that more retailers sign up to use CanPay, giving the cannabis industry a safer and more convenient way to accept payments.