Colorado firm offers non-cash payment solution for Maine's cannabis retailers
Photo / Tim Greenway
Patricia Rosi-Santucci, CEO of Wellness Connection of Maine, shown at her company's Portland dispensary. Rosi-Santucci says the new CanPay debit payment service enables customers to make electronic payments at her company's dispensaries and through its website.
CanPay, a Littleton, Colo.-based company that describes itself as ‘the world’s first debit payment app for cannabis retailers,” has launched its cashless payment system in Maine and six other East Coast states that allow for adult use of marijuana.
The company announced Tuesday its launch of debit payment services to 115 cannabis retailers in Maine, Massachusetts, New Hampshire, New York, Pennsylvania, Maryland and Florida. It plans to extend its services within those markets and to Rhode Island, New Jersey and Vermont by the end of the year, according to its news release.
“CanPay’s goal is to be the No. 1 name in cannabis payments, delivering a quick and easy-to-use payment option for cannabis consumers everywhere,” CanPay CEO Dustin Eide said in the release. “By expanding our services throughout the East Coast, consumers from Maine all the way to Florida can make free, secure payments for all of their cannabis needs. East Coast dispensaries are widely adopting CanPay because it allows them to reduce cash on hand and offer their customers a convenient payment experience that is reliable, compliant and transparent.”
CanPay reported that the U.S. cannabis industry is projected to reach nearly $25 billion by 2025, noting that nine states and the District of Columbia now allow the adult use of of marijuana. Thirty more (including Maine) have legalized cannabis for medical use, the company stated.
“Even more states are planning to legalize and decriminalize marijuana in some capacity in the years to come,” the company stated. “CanPay is poised to utilize its nationwide compliant cannabis banking network and industry-leading position to become the universal payment tool for consumers and patients whenever and wherever they can legally purchase cannabis.”
How it works
According to CanPay, its debit payment app functions like other debit and credit cards. A debit in the exact amount of the transaction is made to the user’s checking account at the time of purchase.
The debit account is issued by CanPay and transactions are processed by its partner, ZipLine, a 15-year-old company with locations in Portland, Maine, and Coconut Creek, Fla. The service is free to sign up for and free to use, the company states.
For retailers, CanPay says they must be banking with a CanPay-approved financial institution. Once that banking relationship is confirmed, the retailer can complete the CanPay application. Upon approval, the retailer’s equipment will be programmed and shipped to their location. Once the terminals are connected to the business’s WiFi, they can start accepting CanPay transactions.
How it helps cannabis retailers
CanPay says its debit service helps cannabis retailers in two ways: 1) It reduces cash transactions and therefore the amount of cash they will have on their premises. 2) Since all major credit card brands have stated the are not providing services to the cannabis industry in light of the federal stance on cannabis, CanPay offers cannabis retailer customers the option of paying by a debit transaction.
"Leveraging CanPay's technology to provide cannabis consumers here in Maine with a safe and trusted way to go cashless was the next, most logical step in the continued evolution of our business," said Patricia Rosi-Santucci, CEO of Wellness Connection of Maine. "Our customers now have the freedom to make electronic payments at our dispensaries and through our website, just like they would pay anywhere else. And that convenience has not only helped to increase the volume of business we receive, but it's also normalized how we conduct business by enhancing the safety of both our employees and customers."
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