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Hypur: Taking Businesses beyond Regulatory Tightrope

CIO VendorMichael J. Sinnwell Jr., President & COO
Michael J. Sinnwell Jr., the President/COO of Hypur, a skilled and experienced architect of cutting-edge payment and banking platforms, had left the financial industry in 2010. He was summoned back into the space in 2013 upon receiving a call from a friend and colleague. Christopher Galvin, who later became the CEO of Hypur, was working with an armored car service in Colorado, and brought to his attention the inability of merchants in the cannabis industry to use traditional payment systems and banking. Using his programming background to his advantage, Michael offered to architect a solution that provided the transparency and requisite tools for financial institutions to accurately and compliantly provide banking and payments solutions to the cannabis industry. They recognized that this was a banking problem, not a payments problem. If operators were unable to get their capital into the banking system, there was no way to provide a sustainable solution to an industry desperately in need of one. Together, they are bringing transparency in these transactions and co-founded Hypur.

Since cannabis is still federally illegal, many financial institutions shy away from providing banking services to cannabis businesses. Hypur enables banks and credit unions the ability to service these businesses by providing compliance solutions and payment technology. Hypur’s suite of products is designed to help banks vet marijuana businesses and other cash-intensive companies for anti-money-laundering and know-your-customer compliance. The software is offered as a Compliance-as-a-Service (CaaS) model which enables financial institutions the ability to eliminate “blind spots” through the entire life cycle of a prospective merchant. The technology puts banks and credit unions in a continuously proactive, not reactive environment through access to real time data sets and automation.

The software is offered as a Compliance-as-a- Service (CaaS) model which enables financial institutions the ability to eliminate ‘blind spots’ through the entire life cycle of a prospective merchant


“If financial institutions can’t solve the regulatory and banking issues they will most likely not be able to successfully bank these industries,” explains Michael.

Additionally, Hypur enables financial institutions the ability to enter and scale within the highly-regulated, cash intensive sectors. The CaaS model was created as a solution for all highly regulated industries that had banking challenges, i.e. money transmitters, payday lenders, check cashers, and pawn shops. “We continue to analyze our technology and work with our financial institutions to improve our product,” says Michael.

Hypur is partnering with new financial institutions regularly for marijuana-related compliance initiatives. The company also originates transactions through its financial institution partners to provide marijuana-related businesses with an electronic payments system (C2B). This offers consumers the option to pay electronically in store or online. These transactions are a direct bank-to-bank transaction done at a flat percent fee.

To help manage and provide transparency to the supply chain side of the industry, Hypur offers a business-to-business (B2B) payment solution. Hypur’s Payments-as-a-Service is the payment industry's first value enhanced SaaS deployed payments model. Instead of paying high fees for transactions to the card networks, Hypur offers flat-rate plans that reduce costs and increase profit margins. Hypur’s platform will digitize receivables and move manual financial processes to the cloud.

“Imagine automating your transactions, creating faster time-to-cash, full 3-way reconciliation, real-time analytics, recurring billing and lowering your days sales outstanding DSO,” says Michael in conclusion.