Lüt has announced a partnership with Frankenmuth Credit Union to support compliant, cashless payments for licensed cannabis businesses in Michigan. Through the collaboration, Frankenmuth Credit Union will offer Lüt Reserve, Lüt's closed-loop payment platform, as part of its Envy cannabis banking program.
The partnership brings together Frankenmuth Credit Union's compliance-forward cannabis banking program, which was developed in partnership with Green Check Verified, and Lüt's closed-loop payment technology to address one of the industry's most persistent challenges: reliable, regulator-aligned alternatives to cash. Together, the organizations aim to provide cannabis businesses with a secure way to accept digital payments while delivering a faster, more transparent experience for consumers.
"As cannabis businesses scale and regulatory scrutiny increases, the need for dependable, purpose-built payment infrastructure has never been greater," said Mike Andrud, CEO of Lüt. "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."
Through Lüt Reserve, cannabis operators can accept in-store payments using a closed-loop, good-funds model that operates outside of traditional card networks. The platform reduces reliance on cash, limits exposure to payment disruptions and enables faster settlement. Lüt also supports loyalty and cashback programs and budtender referral initiatives designed to drive adoption at the point of sale and streamline pain points in the cannabis industry.
For consumers, the partnership provides an alternative to cash-heavy transactions, offering faster checkout and cashback rewards through the Lüt Reserve mobile app. For operators, it delivers real-time payments, reduced cash handling, and improved operational efficiency at a time when compliance expectations and consumer demand for digital payments continue to rise.
"Cannabis businesses are operating in an environment that demands both innovation and discipline," said Vickie Schmitzer, CEO of Frankenmuth Credit Union. "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."
For more information:
Lüt 
mylut.com/
