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Paybotic refers to its deb- set up accounts using their checking account information. Once verified and approved by
it solution as a cashless CanPay, they use the app to log in when entering a dispensary, whereupon they receive a
ATM; point of banking single-use QR code that's presented at checkout to complete the sale. CanPay even supports
machine is another moni- online ordering and payments via participating dispensary websites.
ker commonly attached to
these solutions. A cashless CanPay, which was founded specifically to serve the cannabis industry, operates what
ATM allows consumers to it calls a closed-banking feedback loop. Only banks and credit unions that are in total
use debit or credit cards as compliance with the Cole Memo and FinCEN guidance participate – about 30 at last count.
though they are accessing
cash from an ATM. Hypur, like CanPay relies on the ACH to clear payments. It is a mobile app, too, with PIN-
based transaction authorization. The company supports both consumer-to-business and
Merchants display sig- business-to-business transactions. But unlike most startups in this space, Hypur's primary
nage indicating they ac- focus is banks. "This is a banking problem first. Payments is a subset of that," Fuller said.
cept credit and debit cards, "Nothing can happen without solving the banking problems."
but make no references
to the card brands. Since Hypur has developed a platform that automates all of the enhanced due diligence and
ATMs do not dispense documentation (for example, suspicious activity and currency transaction reports) required
coins or dollar bills, trans- of financial institutions that serve cannabis businesses. The platform integrates with core
actions are rounded up to banking systems as well as POS systems and accounts receivables systems used by cannabis
the nearest $5 increment, businesses, and supports real-time data feeds and transaction monitoring. "So when a
and customers receive the regulator inquires, we're able to tie transactions to data from the point of sale," Fuller said.
difference back as change.
A key merchant benefit is Hypur also maintains buyer profiles, keeping tabs to ensure customers don't purchase
they get to assess conve- more than allowed by law. Plus it manages and tracks cash transactions and the process
nience fees, just as they of getting that cash to banks. "We make marijuana business clients the most transparent
would for transactions at customers at a bank," Fuller said.
free-standing ATMs they
own. Financial institutions numbering in "the double digits" use Hypur, Fuller noted. A former
ISO operator, he said Hypur hopes to expand its partnership base eventually to include
Fuller suggested this may ISOs.
not be a failsafe option for
businesses. "They're still Patti Murphy is senior editor at the Green Sheet and president of ProScribes Inc. Follow her on Twitter
taking [Visa- and Master- @GS_PayMaven
card-] branded cards," he
said. And if their banks
realize this they can shut
down their accounts. "The
depository bank has all
the leverage in this space,"
Fuller said.

Another approach to pay-
ment acceptance, pio-
neered by CanPay, is de-
coupled debit. Decoupled
debit-card accounts are
commonly issued by re-
tailers; the most well-
known, perhaps, is Target
Corp.'s RedCard. Card-
holders authorize issuers
to debit their checking ac-
counts through the ACH
network.

Consumers who shop at
dispensaries served by
CanPay download the
company's mobile app and

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