Digital payments provider Aeropay has joined forces with cannabis sale platform Flowhub to offer ACH payments for more than 1,000 dispensaries using Flowhub’s software.
The companies said in a Thursday (April 28) news release that retailers who use Flowhub can now offer cashless payments at checkout, which can boost sales by more than 25% for each transaction, according to Aeropay data.
“Flowhub is a leading platform for cannabis retailers across the country, and this integration will allow thousands of businesses to offer a modern and efficient shopping experience,” Daniel Muller, CEO and founder of Aeropay, said in the release. “This partnership is a consequential milestone in Aeropay’s mission to help cannabis businesses efficiently scale by eliminating operational friction points.”
The companies said the integration makes checkout easier, as customers simply scan a QR code that links to their bank to complete their purchase without needing to use cash or a card.
Kyle Sherman, Flowhub’s founder and CEO, said the two companies are “committed to helping make cannabis products more easily accessible to consumers and reduce reliance on cash. This integration is a stepping stone for innovative payment processing of legal cannabis sales.”
Flowhub processes more than $3 billion in cannabis sales a year. In October of last year, the company landed $19 million in strategic funding from a group led by venture firms Headline and Poseidon, which included a personal investment from rapper/mogul Jay Z.
Around the same time, Aeropay teamed up with cannabis eCommerce provider Jane Technologies Inc. to enable digital payments through Aeropay for the more than 2,100 dispensaries and 300 companies selling products using Jane’s online marketplace.
In addition to the cannabis sector, Aeropay’s application programming interface (API)-based platform handles payments for restaurants, retail and technology firms and nonprofits, both in-store and online. The company said its presence in the cannabis business has seen substantial success, as that industry is poised to reach $130 billion by 2024, according to Aeropay’s calculation.