New bank-to-bank payment option for cannabis shops

There's a new solution that targets cannabis dispensaries. IndicaOnline, a provider of cannabis point-of-sale and business management software has introduced sweedePay, which leverages the ACH to process payments.

Powered by Aeropay, a bank-to-bank payment platform, sweedePay is tailored to meet "the unique needs and regulatory demands" of dispensaries and delivery services, according to an announcement from IndicaOnline.

"With digital payments becoming the norm across industries, cannabis retailers can no longer afford to be left behind," the company stated. It added that sweedePay was developed for use at brick-and-mortar dispensaries as well for dispensaries using a delivery model.

Cannabis dispensaries and related businesses make up a market that is flush with cash. Last year Americans spent an estimated $15.2 billion at state-authorized retail cannabis dispensaries. By 2028, the estimated spend could reach $171 billion, according to MJBiz, a media and events company that serves the cannabis industry.

Trouble gaining traction

The primary reason for all this cash flowing into cannabis businesses is that the credit card networks do not allow transactions from such businesses because federal law classifies cannabis as a dangerous drug, on par with heroine and LSD. Numerous payment services providers have come to market with alternative ways of serving this market, such as prepaid cards, mobile apps and cashless ATMs. None of these alternatives, however, has gained much traction.

Recently, leading acquirer Fiserv entered the market with a solution that leverages its Accel debit card network. Cardholders served by the Accel network can make card-present, PIN-based mag-stripe purchases at POS terminals in state-authorized cannabis dispensaries, Fiserv explained.

IndicaOnline said it has been developing technologies that for cannabis businesses for over a decade. Its POS systems, inventory management tools and compliance solutions have been implemented in "thousands of dispensaries across North America and beyond," the company stated.

"With a deep understanding of the challenges cannabis businesses face," the company further noted, it launched sweedePay "to eliminate one of the industry's most persistent obstacle: limited access to safe and legal online ACH processing."

With sweedePay, cannabis retailers can accept bank-to-bank payments securely and efficiently, in line with state and federal guidelines, the company said. The solution utilizes advanced encryption and regulatory safeguards to ensure protected and compliant ACH payments.

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