Chicago FinTech Spence Labs is introducing new products to the sector to show how far out of the shadows the sale of marijuana has come.
One of them is a payment platform that the company offers as a “seed to sale”. The other is a B2B payment platform called Enjoy Now, Pay Later.
“Financial transactions in the cannabis industry can be complicated for both consumers and the many companies in the supply chain,” said Chris Rentner, Spence Labs co-founder and chief executive officer, in a prepared statement. “Our goal is to make it easier and safer for everyone involved, from the producer to the retailer to the customer.”
According to Spence Labs, the core product is a payment platform that allows customers to purchase pot through a web-based payment system available at the gospence.com URL as an alternative to cash payments.
Marketing materials say, “When customers are ready to buy, they simply display a unique QR code for pharmacy staff to scan and then enter a PIN to confirm their purchase, either by available funds or via the new financing “Enjoy now, pay later” option. Funds are automatically transferred with encryption at the bank level and processed by an FDIC-insured banking partner. “
The offer is a so-called “white label” service or a service developed by one company but sold by another company and often offered as a brand. A benefit for the client company in such an arrangement is the ability to build brand loyalty and easily offer coupons and other incentives.
“We understand the power to own the entire transaction from a branding perspective,” said Retner. “Our system delivers that and puts your brand and messaging in the foreground.”
According to Spence Labs, the marijuana industry is cash intensive. In a press release, the company stated: “Virtually every transaction between companies within the cannabis ecosystem is currently carried out by cash or check, creating security risks and compliance issues for everyone involved. Spence Labs designed Spence for Business, its new B2B payments platform, to mitigate these risks while providing the tools and insights businesses need to manage their finances more effectively. “
Pensioner added, “No more armored car services or the uncertainty of a check and long waits to access your money to get paid.”
The “enjoy now, pay later” option is interest-free, according to Spence Labs, and “revolutionary in cannabis where credit cards are not available”.
NEW PYMNTS DATA: BUY NOW, PAY LATER, CONSUMER STUDY
About: Buy Now, Pay Later: Millennials and the Changing Dynamics of Online Credit, a collaboration between PYMNTS and PayPal, explores the demand for new flexible credit options and the way consumers, especially in the millennial demographics, are paying online. The study is based on two surveys of nearly 15,000 US consumers.