A payments startup is looking to cash in on America's weed revolution, launching a debit payment solution specifically designed for the cannabis industry.
Although nine states voted to legalise cannabis this election cycle, joining the likes of Colorado and Oregon, federal laws mean that many banks and credit unions are unwilling to provide the industry financial services.
CanPay is promising to make it easier for retailers to accept debit payments through a multi-state network of financial institutions that are banking the cannabis industry under compliance programmes meeting federal guidelines. This means that weed sellers can avoid the costs and risks associated with all-cash work and accept e-payments under their own brand names.
For privacy and security, all purchases are made using non-identifiable, single-use, and random payment tokens generated in the CanPay App. Potheads download the CanPay App from the firm's website to their smartphone, create an account and link their checking account, and, upon approval, begin paying at any participating retailer.
When they buy weed, they log into the app and scan the random token into the retailer's point of sale device. Funds are electronically transferred directly from their checking account to the retailer's compliant bank account.
CanPay says that it is currently available in Washington, Colorado, and Oregon and is working to expand to other states.
Dustin Eide, CEO, CanPay, says: "As more and more states move to legalise medical and recreational cannabis within their borders, the time has come for a legitimate payment solution. With regulations being determined across the newly approved states, we will be expanding CanPay into each market in partnership with those institutions offering compliant banking to cannabis retailers."