Flowhub Partners With Aeropay for Cashless Dispensary Purchases

Dan Muller says you can now leave the cash at home when you go weed shopping.

Finding an alternative to cash payments has been a constant challenge for the cannabis industry, which is shut out from the majority of financial services because of the plant's federal prohibition. Some dispensaries will accept debit cards for a few months, only to lose their accounts overnight once the bank figures out what they're doing.

Muller's software, Aeropay, connects dispensaries, customers and bank accounts for cashless payment, enabling app-less, fee-less purchases through phones and QR codes. Now partnered with Flowhub, one of the cannabis industry's largest sales software providers, Aeropay could soon be appearing in a lot more dispensaries. We caught up with Muller, CEO of Aeropay, to talk about how the program works.

Westword: How many Colorado dispensaries are currently using Aeropay?

Dan Muller: Aeropay contactless payments are now accepted at over a dozen Colorado dispensaries, including Lova, Seed and Smith, the Farm, Yuma Way, the Joint and many more.

How does it work for users? Do they download an app and then link their bank accounts to it?

Aeropay is even easier and quicker than downloading an app. Aeropay is web-based, allowing in-store customers to scan a QR code, which prompts them to create an Aeropay account, link to their bank and pay the business. For online orders, customers simply choose the Aeropay button at checkout to link to their bank online and pay.

What if my bank is a big one, like Chase or Wells Fargo? Will those sort of banks decline a dispensary purchase?

Aeropay connects to over 2,000 banks, including “big ones” like Chase. Aeropay is a bank-to-bank transfer solution through the Automated Clearing House (ACH). As we do not operate on credit-card rails, like cashless ATMs, the banks do not decline a dispensary purchase. This is a compliant, contactless and cash-free solution for cannabis payments.

What fees does Aeropay carry for customers?

Aeropay is completely free for customers. There are no fees, no downloads, no need to share sensitive information. Aeropay gives customers the freedom to spend without the limitations of cash or cards.

How much can a dispensary gain by offering cashless sales? Are more customers showing up? Are their purchasing habits changing?

We see significant and impactful increases in spending when customers use Aeropay instead of cash or cards. Many of our dispensary businesses report that Aeropay customers spend 25 percent or more than customers paying with cash. Customers in all industries, in cannabis and the broader retail sector, want contactless payments. They want a safe and secure way to pay with their personal mobile device. They do not want the debt, the fees, the contact with bills and screens, or the multitude of limitations with other payment methods. Getting customers to sign up for a cashless app has been a struggle for dispensaries in the past. How does Aeropay overcome that obstacle?

In the past, cannabis payment providers may have overlooked the need for budtender buy-in. Budtenders and dispensary operators are key customer touchpoints and make many recommendations throughout the customer journey. We provide online and on-site training to ensure that staff members not only understand how Aeropay works, but understand how it betters their job and the customer experience.

Aeropay has also doubled down on our customer support team. Having quick-to-respond, happy-to-help live, human support to overcome small obstacles to create an account, link to a bank and pay has proven to impactfully support customer adoption.

What does a dispensary do once they receive a customer's cashless payment on Aeropay? Do they need to find a bank or credit union willing to serve them, as well?

As Aeropay facilitates bank-to-bank transfers through the Automated Clearing House (ACH), our dispensary partners do need to have a compliant banking solution. There are compliant financial institutions that do work in the cannabis space today. One example is Safe Harbor Financial. We are always happy to make introductions.

If Congress ever allows cannabis banking, what does that do to Aeropay's prospects?

Faster, affordable and safe payments are a customer demand, both in the cannabis industry and the greater retail sector. If more compliant financial institutions enter the space, it will only give Aeropay more potential financial institution partners to work with.

Customers are not going back to cash. Only 16 percent of people carry cash, and 58 percent say that they do not plan on using cash in the future. Customers are tired of hefty ATM fees, credit card fees, debt and limits. They want to access their money through a safe, secure personal transfer, and that is precisely what Aeropay provides. We give customers the freedom to spend.