KindTap brings digital credit to the cannabis industry
This week KindTap Technologies announced the launch of its digital consumer credit platform, bringing a much needed payment solution to a largely cash-based industry. While the industry has hoped for relief from the SAFE Banking Act, which is currently under consideration in Congress, the expectation on Wall Street and in legislative circles is that this should not happen in the immediate future. With endless questions swirling around the eventuality of federal cannabis legalization, it is clear that other banking solutions in the cannabis industry are needed that do not rest on a volatile legislative climate.
This new platform uses a pre-approved credit and loyalty digital payment mechanism using KindTap’s web app and is available both in-store and online. It will be launched exclusively in the Massachusetts cannabis market before rolling out to other states including Florida, Michigan, Maine and New York.
“Without some form of digital credit payment in the cannabis industry, transactions must be made in cash or through cashless transactions at ATMs, putting dispensaries, their employees and consumers at risk,” said Cathy Corby. Iannuzzelli, Co-Founder and Head of Payments at KindTap. in a report.
“After two years of research and product development, we are excited to launch our KindTap credit solution and bring more security and efficiency to the cannabis industry with frictionless payments. Legal cannabis companies have long been denied financial resources and basic banking services, and consumers are forced to face unnecessary fees and complexities in the shopping experience. KindTap’s mission is to bring the payment process closer to the efficiency that cannabis consumers and traders expect and deserve, ”said Iannuzzielli.
“There are many payment companies that claim to provide credit or allow cannabis users to use their existing credit cards to purchase cannabis. These platforms either do not hold up to KindTap’s level of compliance, or are just smoke and mirrors, ultimately increasing costs and confusion in the market, ”said Frank A. Segall, President of National Cannabis Business & Law Burns & Levinson Advisory Group. .
“KindTap’s provider ecosystem includes top US-based payment providers and regulated financial institutions. KindTap gives cannabis consumers real credit, and that is a real game-changer for cannabis operators and their customers, ”Segall said.
With KindTap’s payment platform, cannabis merchants will be able to accept digital credit payments with certainty. Using the platform will also alleviate issues with abandoned orders and other awkward issues caused by cash-dependent customers, as well as the storage and management of thousands of dollars in cash, including theft and compliance issues. The company claims its solution as an industry first, saying it offers consumers revolving lines of credit for initial cannabis purchases and allows merchants to accept digital credit payments without paperwork or significant hurdles.
Consumers can pay with KindTap in-store upon arrival, or online for pre-orders and deliveries, with flexible payment options and no late fees. E-commerce and digital menu software is powered by WebJoint, a California-based cannabis delivery software provider, and the only cannabis e-commerce store in the United States that offers consumers a one-click “pay now” to order with credit.
“With our partnership, we are bridging the gap between cannabis retailers and the most advanced payment processing technology, nationwide. We look forward to making the business benefits of cash alternatives more accessible to retailers with KindTap, ”says Hilart Abrahamian, COO and co-founder of WebJoint.