Cannabis firms Aeropay and KindTap have teamed to offer digital credit at checkout.
The partnership, announced Tuesday (May 9), marries Aeropay’s digital payment capabilities with KindTap’s consumer credit solution.
“In addition to supporting increased dispensary revenue, the integration provides shoppers with a modern retail experience by offering both compliant bank-to-bank transfers and digital credit in one product,” the companies said in a news release provided to PYMNTS.
“At checkout, Aeropay customers can choose to link to their bank for seamless ACH transfers or apply for a digital credit card, powered by KindTap.”
According to the release, KindTap lets customers purchase cannabis products and pay later with credit. With this partnership, consumers can sign up and receive a virtual credit card that can be used at Aeropay eCommerce and brick-and-mortar merchants.
“We are seeing our consumer credit platform increase customer basket sizes and monthly spending by up to 50%, and our purchase now, pay later credit option brings mainstream efficiency to cannabis consumers and merchants,” said KindTap’s President and Co-founder, Cathy Corby Iannuzzelli.
Daniel Muller, CEO and Founder of Aeropay added, “It’s exciting to see two payment providers collaborating to offer cannabis businesses and their customers a completely cashless checkout. We’re thrilled to announce this integration with KindTap and bring everyday payment options to an industry that has been unable to offer a compliant bank-to-bank transfer and credit solution in one product.”
PYMNTS spoke last month with Aeropay Chief Revenue Officer Andrew Gleiser about the payments element of his company.
Having worked at major payments platforms such Stripe, he said he was puzzled by cannabis’ uneven rollout in the U.S., especially the inefficiencies that are waiting to become opportunities.
He added that “before you had compliant, cashless payment providers and well-integrated, compliant last-mile delivery services, it was a little wild west because you would bring out cannabis to the customers and the drivers would then collect cash.”
He also projected a wave of consolidations that will make cannabis more akin to the alcohol sector, with multistate operators behaving more like Amazon and Walmart, with central distribution hubs.
“Think about pizza,” said Gleiser. “If everyone went to go pick up their pizza, they would make a certain amount of money. But the reality is you’re going to make a lot more money as someone that’s offering delivery as well.”
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