LITTLETON, Colo.—Safe Harbor Private Banking, a CUSO of Partner Colorado Credit Union that provides a compliant banking program for cannabis businesses, said it is partnering with CanPay, a debit payment solution for the cannabis industry, to offer banking services and cashless payments statewide for Hawaii’s cannabis businesses.
This marks the first time banking partners, regulators, and cannabis licensees have worked together to bring banking solutions to a previously unbanked legal medical marijuana market, according to the two organizations.
Safe Harbor and CanPay noted that despite approval of medical marijuana laws in 29 states and the District of Columbia, cannabis businesses continue to encounter barriers to bank accounts at federally insured financial institutions, including the ability to accept cashless payment methods.
“With today’s announcement, those obstacles no longer exist in Hawaii. Together, Safe Harbor and CanPay are able to increase convenience, transparency, and security for both dispensaries and their patients,” the organizations said.
“Hawaii cannabis businesses will be on the newly automated Safe Harbor platform. Under our supervision, we'll methodically work with a financial institution in Hawaii to ensure safety and soundness as they integrate accounts into their portfolios,” said Sundie Seefried, Safe Harbor's CEO. “Our collaborative work with Hawaii's Commissioner of Financial Institutions, Iris Ikeda, the executive director of the Hawaii Education Association for Licensed Therapeutic Healthcare (HEALTH), Kerry Komatsubara, and our partnership with CanPay, has resulted in a legitimate and efficient way for medical marijuana licensees to do business and safely serve their clients. Our cannabis banking compliance program, created and tested in the Colorado market, is now being installed for the cannabis industry in Hawaii, and as in Colorado, will keep the citizens of Hawaii safe as the state launches legal cannabis.”
Safe Harbor CU, which was recently the subject of a report in CUToday.info, reported it banks more than $1 billion in compliant cannabis funds annually and will be providing banking services to all eight licensees in the state. CanPay is currently available in close to 60 dispensaries across seven states.
“Removing cash from the equation leads to a more transparent and legitimate way to do business that’s both convenient and secure for all involved,” said Dustin Eide, CEO of CanPay, in a statement. “Through the lengthy collaboration between ourselves, Safe Harbor, and the tremendous individuals in Hawaii’s legal cannabis market, these dispensaries are now able to operate as closely as possible to businesses in any other industry.”
The parties involved said the transition to bring legitimate banking and merchant services to the Hawaiian cannabis market has been underway for nearly a year and involved collaboration between top financial regulators, officials, and financial partners from across the country.
“The arrival of banking and payment services for the cannabis industry in Hawaii will enable dispensaries to reduce or eliminate cash sales, which will help keep these businesses much more secure,” said Komatsubara. “The cash-only precedent in this industry is less than ideal for customers, employees, and the general community, so having alternative options available really does change how we do business for the better.”
With no access to traditional Visa and MasterCard payment processing services, CanPay said it steps in to provide a convenient alternative to cash-only transactions, proving compliant banking and merchant services throughout the U.S. for cannabis businesses. Similarly, Safe Harbor has established itself as the leader in cannabis-specific compliant banking programs, filling the void left as larger financial institutions continue to give the industry a wide berth due to its status at the federal level.