Lüt Partners with Frankenmuth Credit Union to Process Cannabis Payments in Michigan

FRANKENMUTH – Lüt, a fintech company focused on closed-loop digital payments in Cannabis, has entered a partnership with Frankenmuth Credit Union to broaden access to compliant, cashless transaction options for licensed Cannabis operators in Michigan.

The agreement integrates Lüt Reserve [the company’s closed-loop payment platform] into Frankenmuth Credit Union’s Envy program, which provides banking services to Cannabis-related businesses. The collaboration aims to deliver secure digital payments that reduce reliance on cash, while adding features like faster checkouts, customer rewards and greater transaction reliability for merchants.

Frankenmuth Credit Union, a $1 billion institution, has offered Cannabis banking through Envy since around 2021, working with compliance specialist Green Check Verified to serve licensed plant-touching and ancillary businesses in the state. This new tie-up with Lüt builds on that foundation by introducing a modern payment rail designed specifically for the industry’s regulatory constraints, where traditional card networks often restrict service.

The move comes as Michigan’s Cannabis market continues to mature, with operators seeking tools to cut cash-handling risks, improve operational efficiency and meet compliance standards. Closed-loop systems like Lüt’s limit transactions to a defined network of participants, helping avoid issues common in federal-illegal Cannabis commerce, such as payment denials or non-sufficient funds.

Lüt has pursued similar alliances recently, including a January 2026 partnership with Safe Harbor to extend its platform to more Cannabis and specialty merchants. The company positions its technology as a way to create guaranteed-funds payments without exposing banks to excessive risk.

For Michigan Cannabis businesses, the partnership offers another option in a state where banking access remains uneven despite legalization. It reflects ongoing efforts by credit unions and fintechs to fill gaps left by major banks wary of federal enforcement risks.

In a market still heavily dependent on cash [and now facing fresh pressures from the state’s new 24% wholesale excise tax and ongoing federal uncertainties around rescheduling] partnerships of this kind deliver tangible, incremental progress. They equip operators with practical tools to streamline daily transactions, enhance security, and build consumer trust through rewards and smoother experiences.