CannabisNewsWire
Editorial Coverage: Financial services are undergoing a period
of change as high-risk businesses, often excluded from conventional
banking systems, search for alternative ways to process payments.
Companies such as Global Payout, Inc. (OTC: GOHE)
(GOHE
Profile) are providing payment
systems for high-risk ventures such as the cannabis industry,
saving vendors from the need to operate exclusively on cash.
SinglePoint, Inc. (OTCQB: SING) is also working in
this sector, while bringing bitcoin payments into the mainstream.
MassRoots, Inc. (OTCQB: MSRT) is moving from the
cannabis sector into payment processing, adapting its expertise in
cannabis tech solutions to provide financial services. Cannabis
grower iAnthus Capital Holdings, Inc. (OTCQB:
ITHUF) is looking at the wider set of managerial and
service solutions that high-risk companies need, and smartphone
payment provider Glance Technologies, Inc. (OTCQB:
GLNNF) is also moving into the sector through an
investment in cannabis sector intelligence and analysis.
The Payment Problem
Recent years have seen high-risk industries facing increasingly
tough times in accessing banking and payment services. In the
United States, the government-backed Operation Chokepoint
discouraged banks from providing services to industries with a high
risk of fraud, such as gun sellers and payday lenders. Meanwhile,
federal legislation from the war on drugs hampers finance for
cannabis businesses in states where the drug has been legalized.
Despite the repeal of Operation Chokepoint (http://cnw.fm/Nof7L), the threat of government
scrutiny still limits the willingness of banks to provide financial
services to these businesses. Even in Canada, which is due to
legalize recreational cannabis this summer, banks are only now
making tentative steps toward supporting the industry (http://cnw.fm/mE49s)
The cannabis industry is leading the way in finding solutions to
this problem. As marijuana legalization spreads across the United
States and beyond, a growing industry needs basic financial
services; the alternative is to continue in a cash-based economy
with the associated risks of fraud, error and theft. Businesses are
stepping in to fill the need.
Financial Solutions for a Changing World
Global Payout,
Inc. (OTC: GOHE) is among the companies providing solutions for
high-risk businesses. Global Payout started out as an innovative
supplier of financial services to mainstream businesses. In an
increasingly complex world of international transactions, managing
finances can be a complicated and messy job. Web-based applications
offer a potential solution, but the wide variety of financial
transactions has created challenging complications.
The solution provided by Global Payout is the Global Reserve
Platform (GRP). A banking-in-a-box system, GRP provides a fully
customizable financial system that allows businesses to handle the
full range of financial transactions in one place. From managing
government benefits to making biometric payments, the system offers
everything a business needs. Additionally, because the setup can be
adapted to the needs of different companies, it doesn’t force
companies to accept a one-size-fits-all solution.
GRP is geared toward bridging divides between conventional
banking and the businesses it serves. Global Payout has dealt with
the practicalities of providing payment solutions in the
mainstream, and, now, the company is applying its knowledge and
expertise to the more challenging world of high-risk business.
Catering to the Cannabis Market
The company’s foray into this area is being led by its partner,
MoneyTrac Technology, Inc. MoneyTrac is specifically geared toward
serving the cannabis industry in the United States and beyond.
Because of its particular legal challenges, both internationally
and within the United States, the cannabis industry may be the most
in need of unconventional banking solutions. In many cases,
cannabis businesses can’t access normal banking solutions as part
of their daily work, making it difficult to manage payments from
customers. This industry, therefore, may be the perfect sector in
which to test alternative payment solutions.
Much like Global Payout, MoneyTrac provides a customizable
web-based payment system. Powered by blockchain technology, the
system provides fast, secure payment options that plug into
conventional banking systems at either end, making it easy for
customers to pay into the system and for businesses to extract
their funds. This high-tech banking solution — MTRAC — was launched
on April 4 (http://cnw.fm/st6rB), providing a solution for a
sector in need.
"The goal of MTRAC from the beginning has been to leverage the
different technologies available to us to remove the use of cash as
the primary form of payment throughout the cannabis industry,”
MoneyTrac CEO Vanessa Luna stated in a news release. “While other
companies have struggled to find supportive financial solutions,
MTRAC opted to take a different approach, and one that has relied
heavily on the use of blockchain technology to address this problem
for a massive and growing industry.”
By providing a payment system for the cannabis industry,
MoneyTrac is fulfilling its “Key to Cashless™” objective. This has
been achieved through partnerships with a range of companies in the
cannabis and technology sectors, including Integrated Compliance
Solutions, Crypto Value Management Systems (http://cnw.fm/K8xYY) and Greenbox (http://cnw.fm/DOv0r). By bringing together the needs
of a specific sector and the potential of blockchain technology,
MoneyTrac is carving out a niche in the field of high-risk
payments.
Beyond the Basics
There may even be great potential for MoneyTrac’s payment
solution to reach beyond the limits of the cannabis sector. The
Federal Deposit Insurance Corporation (FDIC) has encouraged banks
to provide services to businesses based on risk-based analysis
(http://cnw.fm/d2UsM) rather than cutting off
entire sectors from key financial services. Despite this, banks
remain wary of high-risk customers, due to both the financial and
the legal risks. Given the inherent conservatism of established
banks, the situation is not unexpected, creating a space for
disruptive payment providers such as MoneyTrac to fill the gap.
The company has begun diversifying its services in other ways as
well. Through an investment in cannabis community periodical
PotSaver, it has been able to expand its reach within its
core customer base. PotSaver will be providing readers
with money-saving deals on a range of products not limited to
cannabis and its paraphernalia. Simply by being part of the
broadening of that community, MoneyTrac is investing in reaching
beyond cannabis.
A New Financial Sector
As the new financial sector is evolving, a variety of companies
have advanced alternative payment solutions and financial systems.
Like Global Payout, SinglePoint, Inc. (OTCQB:
SING) is working to provide financial services to the
cannabis sector. The two companies have worked together on
providing streamlined payment services based on blockchain
technology. SinglePoint is also heavily invested in bringing the
cryptocurrency sector into the mainstream. Its acquisition of
Bitcoin Beyond (http://cnw.fm/Tar3n) could help the company bring
cryptocurrency payments to everyday financial interactions,
integrating what is currently a fringe area of finance more closely
into everyday life.
Cannabis company MassRoots, Inc. (OTC: MSRT) is
approaching the finance sector from another angle. The company is
already providing a service to help customers judge the efficacy of
cannabis strains and products, thereby demonstrating its ability to
provide technological solutions to the needs of the sector. Now, it
is establishing a subsidiary focused on blockchain, the technology
at the core of cutting-edge payment solutions for high-risk
industries. This will allow the company to provide financial
services for cannabis suppliers and their consumers.
Finance isn’t the only support service that cannabis companies
are looking to reshape to suit their needs. iAnthus Capital
Holdings, Inc. (OTCQB: ITHUF), an operator of cannabis
facilities across the United States, is expanding into a range of
support services. Its acquisition of Pilgrim Rock Management, LLC
(http://cnw.fm/X7PbJ) provides it with
intellectual property licensing, professional and management
services, and real estate and equipment leasing — all geared toward
its core business.
Glance Technologies, Inc. (OTCQB: GLNNF) offers
another alternative approach to payment through its
smartphone-based payment system. This streamlined payment process
allows users to easily make and track payments. Glance’s
blockchain-based rewards system is being integrated into the app.
The company recently invested in Loop Cannabis Insights Inc.,
providing it with more insight into the high-risk businesses that
could benefit from its product.
Alternative payment systems offer a much-needed solution for
high-risk businesses that struggle to access traditional finance.
While the cannabis industry is providing a testing ground for these
services, they are already spreading to the wider economy, allowing
more people access to efficient payment systems.
For more information on Global Payout, visit Global
Payout (OTC: GOHE).
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