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CompanyProfile

MLS/ISO contact: the payments experience for regulated cannabis busi-
Dustin Eide nesses look and feel the same as payments everywhere,
Chief Executive Officer Eide stated. The company built a proprietary network
sales@canpaydebit.com and mobile debit app to facilitate fast, frictionless pay-
888-395-4992 ments. Designed to lower costs, the solution eliminates
consumer debit convenience fees and traditional mer-
chant debit network fees.
Compliant, transparent Decoupled debit

debit solution for The CanPay Closed-Banking Feedback Loop enables par-
ticipating financial institutions to offer a fully compliant
solution to high-risk banking customers while ensuring
cannabis merchants that only compliant transactions flow through the Can-
Pay network. Consumers who sign up and download the
CanPay mobile app authorize CanPay to initiate debits
ittleton, Colo.-based CanPay, established in against their checking accounts through the automated
2016, has created a debit payment solution for clearing house network. They receive a single-use QR
the state-regulated cannabis industry. Designed code each time they visit a dispensary, which is subse-
L to deliver a frictionless payments experience, quently scanned by the merchant's system at checkout.
the solution is fully compliant with U.S. Department of
Justice and FinCEN guidelines, company representatives Eide pointed out that accepting CanPay can help mer-
stated. chants increase customer retention and loyalty by pro-
viding a consistent consumer experience. In addition to
helping merchants increase revenue and reduce cash-
“CanPay started with one goal: to bring traditional handling costs, CanPay provides the following benefits:
and legitimate electronic payment solutions to highly
regulated industries,” said Dustin Eide, CEO at CanPay. • Stability: Merchants can maintain a consistent
“Our experienced team of payments professionals spent identity with payments industry service providers.
years researching the unique challenges facing consumers • Transparency: Merchants can transact and do busi-
and retailers in the high-risk cannabis industry and ness with full disclosure, using their DBA names.
designed a stable, reliable payment solution.”
• Reduced costs: CanPay offers sustainable, competi-
CanPay partners with select financial institutions to pro- tive pricing.
vide cannabis retailers and customers with a compliant • Consistent customer experience: CanPay mobile
debit payment solution within a closed-loop banking net- app users will enjoy a traditional checkout experi-
work. The program lowers traditional debit card fees and ence.
cash transaction costs, Eide noted. CanPay has launched • Safe environment: Reduced presence of on-prem-
in 17 states, with additional rollouts planned in accor- ise cash makes retail environments safer for mer-
dance with evolving regulatory conditions. chants and consumers.
Frictionless, low-cost payments • Higher average tickets: Customers have been prov-
en to spend more when they pay electronically.
Eide acknowledged that cannabis dispensaries and busi-
ness owners in other emerging industries may have dif- • Add-on selling opportunities: Merchants and
ficulty establishing relationships with risk-averse banks sales associates can upsell at the point of purchase
and payment processors. They may find their merchant because customers haven’t predetermined what
applications rejected or have their merchant accounts they are going to spend.
shut down shortly after opening. In addition to facing • Attract new and returning customers: CanPay us-
risks and inefficiencies related to cash-only businesses, ers will see stores that accept CanPay.
cannabis merchants are frequently targeted by predatory • U.S.- based transactions: Merchants will not have
ISOs that misrepresent the nature of their companies and to rely on expensive offshore solutions; all CanPay
transactions to processing networks, he stated. funds flow through financial networks based in the
United States.
“Before CanPay, there was no way for cannabis merchants
to comfortably, legitimately and transparently process “CanPay retailers must be affiliated with a CanPay ap-
payments,” Eide said. “Nontraditional or off-shore pay- proved financial institution to participate in the net-
ment solutions were expensive, inconvenient and slow to work,” Eide said. “The financial institutions and tech-
fund. Some acquirers tried gift card and cryptocurrency nology partners in our proprietary network have a deep
workarounds; we didn’t want to go that route.” CanPay understanding of cannabis merchants and safely and ef-
was determined to work within state guidelines to make ficiently process their electronic debit payments.”

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