About four years ago, Lüt set out to build the most modern payment processing platform in the cannabis industry. Inspired by Fiserv and Global Payments, Lüt developed a closed-loop payment platform for high-risk industries, like cannabis.
Working with "cannabis-friendly" First Federal Bank based in Florida, Lüt invested $16 million to build out rails for its new payment solution. At MJBizCon 2025 in Las Vegas, Lüt CEO Michael Andrud said his solution will work in the cannabis industry without any disruptions.
Because it is a closed-loop payment platform, Lüt doesn't work with open-loop platforms like Visa and Mastercard. However, unlike Visa and Mastercard, merchants in Lüt's loop get paid the next day.
So, how does it work? Consumers sign up for Lüt by downloading an app and linking it to their bank account to fund the account. Merchants sign up with Lüt and, after an underwriting and approval process, use an app to offer customers a cashless, modern payment platform.
According to Lüt, the platform helps increase transaction volume, earn additional income through convenience fees and attract and retain loyal customers. Andrud said Lüt offers rewards programs for consumers, merchants and affiliated banks.
In December, Lüt entered a strategic partnership with Green Check Verified, a fintech company with an ecosystem of some 17,500 cannabis-related businesses. The partnership is designed to deliver a compliance-driven, stable and affordable payment solution to eliminate the industry's reliance on cash, reduce payment shutdowns, and address non-sufficient funds (NSF) issues across in-store, delivery, and e-commerce transactions.
Andrud hopes to bring the breadth of Green Check's banking and merchant network into Lüt's loop. By doing so, he hopes to "take cash out of the whole equation."
