Digital payments platform AeroPay has raised over $5 million in a venture funding round to expand its reach in the cannabis industry and further develop features of its product, the company announced in a Monday (March 8) press release.
The round was led by Chicago Ventures, and also included Continental Investors, former Google executives and individuals from the cannabis and retail industries.
In addition to the cannabis industry, AeroPay’s API-based platform processes payments for restaurants, retail and technology businesses and nonprofits, both in-store and online. But its presence in the cannabis business has seen “significant” success, as the whole industry has expanded rapidly as it moves further into the mainstream. The cannabis industry is expected to reach $130 billion by 2024, according to the release.
“We’re excited to continue bringing better payment options to underserved markets that have been left behind by traditional providers,” AeroPay CEO and Founder Daniel Muller said in the press release.
The cannabis industry has historically been dependent on cash, and continues to be, despite legalization in over half of U.S. states, Muller told PYMNTS recently, due to its varying state and federal legal status. National banks and payment systems remain wary of its complicated status and associated legal risks.
It’s something AeroPay seeks to change, as it seeks partnerships with financial institutions (FIs) open to banking in that space, as well as technology providers, such as cannabis software and delivery firm Blackbird.
“Our store managers are thrilled to offer a cashless payment option that eliminates the need to handle cash and keeps both customers and employees safe,” Mark Passerini, executive vice president of operations at Mission Dispensaries, said in the press release.
The pandemic has also pushed forward the need for cashless — as well as contactless — payments in the cannabis industry, as running brick-and-mortar storefronts has become riskier, PYMNTS reported in another conversation with Muller.
The Chicago-based company also plans to use the funding to expand its team, the release noted.
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