A banking and payment solution for the cannabis industry

We live in a digital world. Most of us now buy things digitally, regardless of whether we pay with a card, banking app or mobile payment app.

But paying for cannabis digitally can be a chore – if you don’t use the right service. Most popular payment apps won’t deal with legal, licensed cannabis companies. Most banks won’t do business with cannabis dealers either.

Fortunately, you can now sign up for KindPay from KIND Financial and Herring Bank. KindPay processes cannabis purchases digitally at each participating retailer licensed by KindPay.

Why is it so troublesome to buy legal pot digitally?

Many cannabis retailers are pure cash businesses. That’s because while cannabis is legal in a certain state, it’s still a List I banned substance at the federal level. The federal ban has created a climate of unfounded fear in the financial world, especially among national credit card networks.

Because large national credit card networks tend to handle the majority of all online and digital payments, they have control over who can and cannot receive their payments. For this reason, most major digital payment apps will not process cannabis transactions, even if cannabis purchases are legal within the state.

Lately, many banks in the US are starting to partner with licensed cannabis companies. So the solution to providing digital payments was to find a bank that was not only smart and sensible enough to do business with the cannabis industry, but one that had years of experience with their cannabis accounts. KIND Financial has done so and its service is now offered through its KindPay mobile app.

How exactly does KindPay work?

KindPay works like most popular digital payment apps. You are making a deposit into your KindPay account with a credit or debit card.

KindPay works through its partnership with Herring Bank. Herring Bank is a long-established, FDIC-insured institution that has existed since 1899.

Herring Bank has been doing business with licensed cannabis companies across the country since 2019. Its compliance department understands the requirements of cannabis regulations.

“Herring Bank has been banking cannabis for over two years,” said Scott Johnson, product manager at KIND Financial, MERRY JANE during a telephone interview. “They feel comfortable with their compliance and the protocols they follow.”

First steps with KindPay

KindPay is available for both Apple and Android mobile devices. You can download it directly from the App Store of one of the two providers. As soon as you have completed the registration to open your Herring bank account, you can deposit funds directly into the account using a credit or debit card.

Next, visit your favorite cannabis retailer and place your order. Currently, KindPay is accepted by over 25 retailers in Colorado, Oklahoma, and California, including Bay Area pioneer Harborside.

When the order is complete, the budtender scans a QR code provided by the KindPay app. After scanning, you approve the transaction to complete the purchase. Herring Bank Deposit will appear on your bank or credit card statement for your deposit transaction, so your purchases remain discreet and rest assured that they have been processed legally and securely through a legitimate, federally approved bank.

KindPay is also friendly to all types of businesses

KindPay started out as a digital payment system for cannabis users. The Advisory Board currently includes prominent cannabis advocates Montel Williams and Lindy Snider. However, the services extend far beyond the customer and can also benefit immensely in business-to-business transactions.

KIND Financial is currently partnering with point-of-sales companies, delivery services and other companies that operate both within and alongside the cannabis industry. They also offer KindPay partnerships beyond the cannabis industry.

“We’re reaching out to non-cannabis companies interested in reaching out to the cannabis consumer,” said Johnson. “We believe the cannabis lifestyle consumer has important reach and target potential outside of the cannabis industry.”

Johnson found that “ridesharing, food delivery, coffee shops, fast food, clothing stores, CBD companies, concerts, venues, museums and hotels” all overlap with the cannabis lifestyle and its customers, ranging from millennials to baby boomers .

“Basically, cannabis companies want to be treated like any other company,” he continued. “The cannabis industry has a particular need for digital payments right now.”

The KindPay app fulfills this need while connecting the cannabis consumer with the rest of the economy. Start using KindPay to pay for cannabis with the convenience, mobility, and security you would for anything else.

Sign up for KindPay today by visiting the website here.

Follow KindPay on Instagram and Twitter.

** This was created in collaboration with KIND Financial.