Financial technology startup Spence Labs announced today it has expanded its suite of payment solutions for the cannabis industry to include a new white label service as well as a “seed to sale” business-to-business payment platform.
“Financial transactions in the cannabis industry can be complicated, both for consumers and the many businesses in the supply chain,” said Chris Rentner, co-founder and CEO of Spence Labs. “Our goal is to make it simpler and safer for everyone involved, from grower to retailer to customer.”
Branded Digital Payments, Powered by Spence
Spence Labs’ core product is the innovative Spence payment platform, which lets dispensary customers pay for cannabis purchases with their mobile phones or online, eliminating the need to carry cash or visit an ATM inside the dispensary. Consumers can sign up in just minutes for a Spence account at GoSpence.com, then pay digitally in just seconds from their web-based Spence app.
When ready to purchase, customers simply display a unique QR code to be scanned by dispensary staff, then enter a PIN to confirm their purchase. Funds are transferred automatically with bank level encryption and processed by an FDIC-insured banking partner.
With the new white label service, dispensaries, as well as cannabis tech companies such as ecommerce, loyalty and POS platforms, own the transaction branding experience, strengthening their brand image and ensuring a consistent customer experience from start to finish. The Spence platform fully integrates into dispensary point-of-sale systems at the register and mobile devices carried by dispensary staff and delivery drivers. A top-of-the-line API enables ecommerce integration with Spence powering the back end.
“We understand the power of owning the whole transaction from a branding perspective,” Rentner said. “Our system delivers that, and puts your brand and messaging in the forefront.”
The Spence white label platform also provides dispensaries with avenues for increased customer engagement and retention, with the ability to offer coupons, execute frequent-buyer programs and special rewards, and notify customers of specials and events directly through the platform.
Simple, Secure Transactions Across the Ecosystem
The overreliance on cash in cannabis is not just a problem at the retail level. Nearly every transaction between businesses within the cannabis ecosystem is currently handled via cash or paper check, creating security risks and compliance issues for everyone involved. Spence Labs has designed Spence for Business, its new B2B payment platform, to alleviate these risks while also providing the tools and insights businesses need to manage their finances more effectively.
“From seed to sale, Spence for Business streamlines the process of making and receiving payments from growers, suppliers and other vendors with confidence,” Rentner said. “Getting paid no longer has to involve armored car services or the uncertainty of a paper check and long wait times to access your funds.”
Spence for Business allows companies to digitally manage large-scale payments to and from vendors or clients from an intuitive web interface, with no maximum transaction size and no restrictions on transaction frequency. The platform provides financial tools such as payables/receivables tracking, pending invoices, vendor risk and compliance assessments, as well as report generation for financial and legal compliance with their financial institution of choice.