Secure banking remains one of the largest hurdles for the cannabis industry. Banks hesitate to accept clients in the industry due to the fact that cannabis is still federally illegal. But where many see a problem, entrepreneurs see an opportunity. And that’s where Hypur stepped in.
Helping set the standard
The top brass at the Scottsdale company knew little about cannabis in their previous lives, but have decades of experience in banking. Rather than approaching the banking problem from the dispensary side, Hypur takes aim at the reasons banks are reluctant to accept funds from cannabis proceeds by making banking with cannabis companies safer.
Easy electronic payments for patients too
But Hypur’s services don’t just help dispensaries find banks, they also make transactions easier for patients.
Customers can sign up with Hypur Commerce at dispensaries that are clients at a bank using Hypur. Hypur Commerce allows customers to link their bank account and simply insert a PIN to pay for cannabis electronically. No card, no cash, just the number, and patients can pay for their product.
While Beuerlein wouldn’t name any of the company’s clients or banks he works with, he asserted that Hypur partners with some of the largest cannabis banking and money-service institutions in the country. Hypur’s got clients in Arizona, California, New Mexico, Oregon, and Washington, he said. The plan is to be in every major cannabis market by the end of the year.
One of the last holdouts is Colorado. Beuerlein said there was no reason in particular they hadn’t quite cracked the Colorado market yet, just that they’ve been focused on “executing their model” in other markets.
Transparency will help all cash-intensive industries
Hypur spotted cannabis as its initial opportunity four years ago, but experience revealed that other industries, such as payday loan or other “cash-intensive” industries experience many of the same problems.
In the beginning, Beuerlein said, when someone at a conference had questions about the cannabis industry, they’d pull them into a back room to talk about it. Now, he said, they’re on stage for some of the biggest banks in the country talking about cannabis.
“We’re trying to help them provide transparency that makes the most difficult accounts in the banking world the most transparent,” Beuerlein said. “And at the end of the day, that’s what’s going to make those industries thrive.”
This article was originally published on Phoenix New Times