Financial services company Plaid, known for powering account verification for some of the world’s biggest financial apps like Venmo and Robinhood, was recently acquired by Visa Inc.
Considering Visa currently does not allow cannabis payments processing, cannabis-focused digital payments company Hypur announced Thursday it’s moving its account verification processes away from Plaid. The company will be verifying accounts in-house, via open banking, explained chief revenue officer Tyler Beuerlein. The aim is to ensure consumers and businesses can continue to operate as usual.
With Hypur’s new open banking technology, consumers can easily and securely link their bank account to the Hypur app. Upgrading to open banking will allow the company to increase account security, while partnering with 17% more financial institutions than it currently operates with.
“Hypur has worked with the cannabis industry for over six years, supporting the cannabis community. We decided to upgrade our account verification to empower consumers with more modern payment options, ensure businesses can continue operating as usual during the cash crunch of COVID-19, and help further grow and mainstream the legal industry,” Beuerlein told Benzinga.
“Hypur has always been a pioneer in the cannabis industry. By upgrading our banking connections, Hypur will expand options for consumers, keep their data and payments safe, and ensure they can continue purchasing the products they love without interruption.”