Mark Lewis, President of Specialty Banking of Lüt – Interview Series

With the cannabis industry remaining illegal on a federal level, the opportunities for secure payment platforms are limited, and being a mostly cash-only business comes with its own series of concerns. One innovative company that is offering solutions to both cannabis businesses and other high-risk businesses via a closed-loop system of payments is Lüt. For more information on their system and how it could benefit mostly cash-only businesses, mycannabis.com had the pleasure of speaking with Mark Lewis, President of Specialty Banking of Lüt.

So I’m sure you’ve been asked about it a lot, but how did you end up playing for the New York Knicks? Did you grow up playing basketball a lot, and how would you describe the process of getting drafted by the NBA? 

It’s interesting to reflect on my journey in sports. In high school, I focused on ice hockey and soccer, and I didn’t start playing organized basketball until my senior year. Initially, I wasn’t planning to pursue basketball seriously, as I was heavily involved in building condominiums and thought that would be my career path. However, during the summer of my senior year, I participated in a recreational basketball league, which turned out to be a pivotal decision. 

A local agent who represented many professional players noticed my skills and inquired about my representation. When I realized he was referring to basketball, I was taken by surprise! He then offered me an opportunity to play for the Youngstown Verich Reps in Ohio, which launched my basketball career. Since then, I’ve traveled from Detroit to Albany, New York, then to Málaga, Spain, followed by Italy, and back to New York. This experience taught me the importance of being open to new opportunities, as you never know where they might lead you.

Where were some international locations and teams you played basketball for? What would you say were the most significant and notable differences between playing professional basketball in the US versus playing internationally? 

When I played overseas in Málaga, teams were only allowed to have three American players on their roster. Additionally, any income earned had to be retained in the country for a whole year; otherwise, it would be taxed in both the host country and the United States. This meant that, even though the season lasted for six months, if you left the country, there was a significant risk that your money could be lost during your absence, as the banking system was not as reliable as it is today. Spain, in particular, was quite challenging for international players in the late ’80s and early ’90s. If you didn’t perform well, the fans could be very hostile. 

After retiring from basketball, what caught your professional attention about working in the finance world? 

I have always played an active role in the real estate market, particularly during the boom that began in the 90s when buildings were converted into condominiums. This experience fully engaged me in the mortgage arena, and I confidently used Countrywide for the majority of my transactions. Managing finances on behalf of others has taught me invaluable lessons. I’m fortunate to have a strong financial support system. My brother owns Tristan Capital in the UK, and I continue to rely on his expertise for guidance, knowledge and strategic decision-making.

Many of my classes underscored the importance of having a solid financial strategy, effectively utilizing bank leverage, and gaining a comprehensive understanding of my financial figures and risk tolerance. Emphasizing these aspects can greatly enhance decision-making and economic success.

What topics and concepts did you mostly study while obtaining your Bachelor’s in Business Administration and Management from Northeastern University?

Northeastern University operates as a cooperative education (co-op) school, which means it offers a five-year degree program that includes a one-year internship experience. I didn’t initially begin my academic journey at Northeastern. However, reflecting on my experience now, it shaped my perspective on teamwork in staff development and also influenced my understanding of healthy internal competition within a sales team. 

An annual sales volume of over $1 billion sounds like a staggering amount, yet how did you successfully manage and oversee such a large amount of funds from all types of accounts while working at Bank of America (BAC )?

If you’re familiar with the mortgage industry, you know that since the mid-1980s, there have been many significant market turns, occurring every 7 to 8 years. We are currently in another shift in the housing market.

To navigate these changes successfully, it’s crucial to stay ahead of trends and fully understand your market and audience. Challenges will come, but by remaining vigilant and strategically positioning yourself to adapt to both successes and setbacks—like avoiding overstaffing and ensuring redundancy through cross-training employees in various roles—you can confidently weather any storm that comes your way.

As someone who’s worked for many financial giants, what caught your professional attention about taking the role of President of Specialty Banking at Lüt? What is special about  Lüt as a company and payment platform? 

I think it was in 2020 that the CEO, Michael Andrud, and Chairman Dave Maccagnone reached out to me about the opportunity to integrate some of their systems into a company I currently own. They expressed interest in having me join their team as an advisor, but at the time, I didn’t have the capacity to commit to both initiatives fully. We maintained our connection over the years. When they decided to concentrate on driving sales growth and developing the necessary strategies to achieve their objectives, they reached out to me again. I was in the process of selling a portfolio of my existing company, and the timing was synergistic, allowing for a meaningful collaboration.

What makes Lüt different is that they are a disruptor in the market.

Lüt is undertaking an endeavor that has not been realized in nearly 30 to 40 years: establishing an end-to-end payment processing company. This complex task is not easily accomplished; if it were, many organizations would have already achieved it. The process necessitates considerable time, financial investment, and the recruitment of specialized expertise to ensure success. It is with this understanding that I recognized the importance of participating in a project that is wholly supported by private funding.

How does  Lüt alleviate the multitude of issues caused by the credit card-restricted, cash or ATM-only systems that cannabis companies and retailers must operate under?

Lüt’s closed-loop system is ideal for high-risk industries (e.g. cannabis dispensaries and online gaming) that struggle with traditional payment processing, as well as for universities, theme parks and resorts needing co-branded, in-house solutions. Additionally, the technology could also feasibly provide an electronic payment solution for developing nations where traditional processors like Visa may not be feasible, benchmarking favorably against UPI (Unified Payments Interface), the world’s fastest-growing payment solution, with enhanced capabilities. With Lüt, any merchant with a cellular data connection can conduct commerce anywhere in the world.

From the customer standpoint, how would the shopping experience benefit from utilizing the Lüt platform?

The closed-loop platform empowers customers to load their wallet system and shop freely wherever it is available. This allows for a more stigma-free shopping experience, for example, at dispensaries. Instead of having to pull out cash and deal with things like ATM fees, Lüt enables users to pay in the app and get cash back within the app every Friday. No tokens, just real cash.

What are some practical ways in which the Lüt platform could build customer loyalty and returning clientele?

The Ambassador Plus program allows budtenders to be compensated as Ambassadors for Lüt, fostering outreach and adoption of the platform and wallet technology.

Another way is through engaging with resellers. Lüt has a robust reseller program enabling others to monetize the technology within their customer base and vertical. While this method requires more attention and labor on the reseller’s part, we also offer a referral option, which allows you to refer a client and receive compensation once the referred merchant is live. Both of these options are paid, lifetime residuals as long as that customer continues to process with Lüt.

Despite the many financial/banking-related issues that arise because of the Schedule I status of cannabis, how did Lüt get backing from institutions such as First Federal Bank and lessen the aforementioned issues caused by cannabis’s federal status?

I believe First Federal Bank saw what I saw, which is that Lüt was moving in a direction that made sense for it and would continue to move forward. For instance, the wide trend of closed-loop payment processing is growing at twice the rate of traditional processing, and we offer a robust solution.

Not only is this a home run for consumers, Lüt provides all aspects of the payment transaction process and is the digital card brand, payment processor and industry tech provider.

First Federal is one of the leading banks in the nation that works with high-risk merchants, including state-legal cannabis firms, online gaming, franchises, universities, resorts, theme parks and developing countries – exactly the areas beyond cannabis Lüt will flourish in.

How do you see the Lüt platform evolving as the American cannabis industry continues to expand?

By Q1 2026, we will implement the capability to process traditional debit and credit card transactions via our switch. This development will enable us to target new markets and opportunities that are strategic in a few different ways:

• Municipalities
• eCommerce
• Provisioning payment processing through traditional payment gateways, resellers, independent software vendors (ISVs), and payment facilitators (PayFacs)
• Expanding Lüt’s operations globally to serve international customers
• Engaging with other complex and highly profitable (high-risk) verticals

 Simultaneously, we intend to sustain our partnership with Global Payments (GPN ) and will direct select opportunities to them as appropriate.

If cannabis were to become federally rescheduled, how would that impact both Lüt and the financial world?

It’s no secret that the federal legalization of cannabis could revolutionize payment processing in the industry, as traditional banking is one of the areas hit the hardest by the scheduling of cannabis. The way I see it, there are three ways federally rescheduling would affect Lüt and the financial world, including reduced processing costs, eliminating risky workarounds and streamlining regulations and improved compliance.

Currently, cannabis businesses face high transaction fees due to being classified as high-risk. Federal legalization would enable competition among payment processors, allowing cannabis companies to access more affordable processing rates similar to those in other industries.

Next, legalization would phase out unofficial payment methods that come with risks, such as cashless ATMs, which face scrutiny, and mis-coded transactions that can lead to frozen accounts.

Lastly, federal legalization would create a more transparent and more standardized regulatory framework. This would simplify compliance for cannabis businesses and enhance financial transparency, making it easier to track funds and report taxes, ultimately leading to a safer and more transparent industry.

This change signifies a promising future for cannabis businesses and greater mainstream acceptance.

Thank you for joining us, Mark! For more information on Lut, please visit its website.