Lüt Announces Strategic Partnership with Safe Harbor to Expand Access to Compliant Closed-Loop Payments for Cannabis and Specialty Merchants

WHY THIS MATTERS:
Payments remain one of the biggest structural barriers for regulated and so-called “high-risk” industries, particularly cannabis, where traditional card networks and acquirers continue to limit access. The result has been an overreliance on cash, higher operational risk and fragmented customer experiences. Closed-loop payment models are emerging as a pragmatic alternative, allowing transactions to remain fully compliant while reducing dependency on card schemes that can change policy overnight. By pairing compliance-first banking with guaranteed-funds digital wallets, the industry is beginning to see viable infrastructure that supports scale, safety and transparency. As regulation evolves, reliable payment access is becoming foundational to the professionalisation and long-term growth of these markets.

Lüt, a new financial ecosystem built for accessibility, reliability and growth with a first-of-its-kind closed-loop digital payments platform for cannabis and other high-risk industries, has announced its new partnership with leading financial services provider Safe Harbor to address one of the cannabis industry’s most persistent challenges: compliant and reliable payments. Through the collaboration, Lüt becomes a Safe Harbor Advantage Partner in closed-loop payment, expanding access to compliant, guaranteed-funds digital payments for cannabis and specialty merchants.

The partnership brings together Safe Harbor’s compliance-first banking solutions with Lüt’s closed-loop payment technology, called Lüt Reserve, that operates outside of traditional card networks and ensures funds are authorized and held in advance.

As part of the Safe Harbor Advantage Partner Network, Lüt Reserve provides closed-loop payments that function outside of traditional payment networks. Through Lüt Reserve, funds are pre-authorized through a good-funds digital wallet model, reducing reliance on cash, eliminating NSF risk and protecting merchants from sudden card network payment shutdowns. Lüt supports retail, delivery, payroll, vendor payments and general expenses, plus e-commerce payments, while keeping transactions fully within the regulated banking system.

“We both share a compliance-first philosophy and a long-term view of building sustainable financial infrastructure for regulated industries,” said Michael Andrud, CEO of Lüt. “This partnership with Safe Harbor signals to the banking industry that compliant, guaranteed-funds digital payments for high-risk industries are operational, scalable, and built to support long-term growth for regulated industries.”

Ean Mullins, Safe Harbor’s SVP of Product Development and Strategic Alliances, said, “This partnership strengthens our suite of financial solutions and underscores Safe Harbor’s leadership in delivering safe and compliant financial services to the industry.”

For merchants, the partnership delivers guaranteed funds, reduced cash handling, and consistent access to digital payments across all sales channels. Consumers will benefit from a faster and more transparent checkout experience, real cashback rewards and increased trust in how transactions are processed.

Over the next year, Safe Harbor and Lüt are slated to focus on merchant onboarding, expanded payment channels and new loyalty and incentive features, continuing both companies’ shared missions to modernize financial infrastructure by pairing compliant banking with modern payment technology.

The collaboration also serves as a foundation for broader expansion, with plans to introduce additional service categories and financial institution partnerships as Lüt scales across regulated and specialty industries.

FF NEWS TAKE:
This partnership reinforces closed-loop payments as a credible path forward for cannabis and other regulated sectors. The real test will be adoption at scale and sustained regulatory alignment. Watch for broader interest from financial institutions as compliant alternatives to cash and card payments continue to mature.