Caliva, Hypur Talk New Partnership, Cashless Payments For Cannabis Businesses
In March, California cannabis producer and retailer Caliva terminated its partnership with delivery platform Eaze.
Since then, the company has focused on improving its self-managed delivery service.
A new partnership with cashless payment service Hypur allows Caliva to accept electronic payments and solve part of the “cash-only” problem that most cannabis companies normally face.
Focusing On ‘Farm To Table’ Business Model
Caliva CEO Dennis O’Malley told Benzinga that the company had already been doing deliveries through its own drivers for over two years before ending its relationship with Eaze.
“We have two delivery hubs in the Bay Area, and as of [April 18], we will have two delivery hubs in Los Angeles.”
This expansion means that the company will be able to provide on-demand delivery services throughout the greater Los Angeles Area.
Caliva decided not to renew its partnership with Eaze in an effort to double down and invest more in its own, already established in-house delivery services, the CEO said.
“Given that we grow our own flower and produce over 200 products at our San Jose facility, we wanted to focus on our 'farm-to-table' quality and freshness for our customers,” O’Malley said. “Owning the delivery process from product to selection to delivery service ultimately means we can also own the customer experience in a way that fits our brand better."
Partnering With Hypur On Cashless Payments
Last week, Caliva announced it started taking payments through Hypur, a payment platform made for businesses that lack access to traditional payment options.
By paying through this app, end customers make direct transfers from their bank accounts to the dispensary’s account.
O’Malley said the cash-only condition that most cannabis businesses face becomes a real problem with the COVID-19 pandemic, as cash exchange can spread the virus.
“Our new partnership with Hypur removes the cash aspect from our customers' transactions," he said. "It gives our customers a contactless and digitized way to purchase their cannabis products, which is really important right now as we all focus on social distancing.”
Christopher Galvin, founder and CEO of Hypur, said that demand for its digital, contactless payment solutions has risen since the outbreak of COVID-19 began.
Paying with the app also means the check-out process is quicker. The company also allows this payment option for in-house purchases.
“The faster we can safely make these transactions, the more customers we’re able to serve in one day and ultimately helping us offer faster delivery times,” O’Malley said.
Hypur does not add extra fees for end customers. The payment company works with over 600 businesses across the country, most of which are in the cannabis industry.
Lead image by Ilona Szentivanyi. Copyright: Benzinga.
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