Lüt, a financial ecosystem specializing in digital payments for high-risk industries, has formed a strategic partnership with Frankenmuth Credit Union to facilitate compliant, cashless transactions for licensed cannabis businesses in Michigan.
Under the collaboration, Frankenmuth Credit Union will integrate Lüt Reserve, Lüt’s closed-loop payment platform, into its existing Envy cannabis banking program. This partnership aims to address the industry’s ongoing challenge of securing reliable, regulator-aligned alternatives to cash payments, especially as enforcement pressures continue to influence cannabis payment solutions.
Both organizations intend to provide cannabis businesses with a secure method for accepting digital payments, promising a faster and more transparent experience for consumers. Frankenmuth Credit Union’s cannabis banking program, developed in conjunction with Green Check Verified, combines with Lüt’s closed-loop technology to tackle the need for robust payment infrastructure.
Mike Andrud, CEO of Lüt, commented on the development: “As cannabis businesses scale and regulatory scrutiny increases, the need for dependable, purpose-built payment infrastructure has never been greater. Partnering with Frankenmuth Credit Union allows us to deliver a solution that financial institutions can stand behind and that business owners and consumers can rely on every day.”
Lüt Reserve enables cannabis operators to accept in-store payments via a closed-loop, good-funds model, bypassing traditional card networks. This system is designed to reduce reliance on cash, minimize exposure to payment disruptions, and facilitate faster settlement times. Additionally, Lüt supports loyalty programs, cashback incentives, and budtender referral initiatives to encourage adoption at the point of sale.
For consumers, the partnership introduces an alternative to cash, providing faster checkout processes and cashback rewards through the Lüt Reserve mobile app. For operators, it offers real-time payments, decreased cash handling, and enhanced operational efficiency, responding to both rising compliance expectations and consumer demand for digital payment options.
Vickie Schmitzer, CEO of Frankenmuth Credit Union, stated: “Cannabis businesses are operating in an environment that demands both innovation and discipline. This partnership allows us to support our cannabis business members with a modern payment option that improves the customer experience while aligning with the regulatory expectations we take seriously as a member-owned credit union.”
The companies plan to broaden the adoption of the platform among licensed operators and launch Lüt’s Ambassador Plus program in the coming months. This program will enable budtenders to introduce consumers to Lüt at the point of sale, offering them ongoing residual income.
Lüt, founded as a new financial ecosystem, focuses on accessibility, reliability, and growth. Its closed-loop digital payments platform is designed for the cannabis and other high-risk industries, combining traditional card processing with real-time payments and a secure mobile system. The platform is built on proprietary payment rails—the first created since 1986—and is supported by a strategic partnership with First Federal Bank of Florida (FFB).
Frankenmuth Credit Union, established in 1964, serves over 73,000 members across Michigan, with branches in Bay, Genesee, Huron, Midland, Ogemaw, Saginaw, Sanilac, Shiawassee, and Tuscola counties. It provides a range of financial services including banking, insurance, trust, and investment solutions for both consumers and businesses.
