CannabisNewsWire Editorial Coverage: Impending legislation in Canada is the most recent step in the spread of legal cannabis consumption. As the industry grows, so do the support businesses supplying related services for retailers and consumers. Global Payout, Inc. (GOHE) (GOHE profile) is providing payment systems and business support through its MoneyTrac partnership. MassRoots Retail (OTC: MSRT) is using blockchain to provide a review aggregator and dispensary finder. GB Sciences, Inc. (OTCQB: GBLX) is working in research and design, focusing its efforts on growing more effective strains and exploring better delivery systems. Lexaria Bioscience Corporation (CSE: LXX) (OTCQX: LXRP) is also improving delivery systems through research aimed at improving the effectiveness of orally consumed cannabinoids. And for the cannabis-focused consumer, General Cannabis Corporation (OTCQB: CANN) has set up Chiefton Supply Co, a clothing brand catering to the growing cannabis culture.
Across the board, the cannabis industry is becoming a more diverse and interesting place.
The Broader Potential of Recreational Cannabis
After many months of political maneuvering, this summer will see the legalization of cannabis for recreational use in Canada. It’s a huge step, even in a country where medical cannabis is already widely available. The expanded Canadian cannabis market is expected to be worth between $10 and $20 billion with many companies preparing to take a chunk of the supply and retail business.
That vast market won’t just consist of cannabis growers and retailers. Many other businesses are looking for entry points into the cannabis industry, whether it’s through payment solutions, accessories, technology, or any of the other products and services that businesses and consumers will be looking for. Businesses who get in now won’t just profit from what’s going on in Canada. Dozens of states and the District of Columbia currently have laws broadly legalizing marijuana in some form, and legalization is spreading. The global medical cannabis market alone is expected to reach $55.8 billion by 2025 (http://cnw.fm/2EjPt), so there is a potential for tremendous growth for early cannabis support businesses.
Secure, Straightforward System
Any retail business needs a secure, straightforward system for taking payments. That system needs to be adapted to their particular needs, whether it’s portability for market stalls or strict security for high price transactions. Global Payout, Inc. (GOHE) is providing payment solutions adapted to the special needs of the cannabis market.
The outlet for this project is MoneyTrac Technology, a Global Payout partner. In collaboration with Greenbox, another partner company, MoneyTrac has launched a payment system specifically geared towards the cannabis market, which will make payments easier and more secure.
The need for such a solution stems from the legal status of cannabis in the United States, currently one of the largest legal cannabis markets. Though cannabis is legal for recreational use in six states and for medical use in over twenty more, it is still covered by antidrug legislation at the federal level. U.S. banks are wary of providing payment services to any cannabis company, even a legally recognized one, in case they come under scrutiny for providing finances to support illegal endeavours.
This situation has created unnecessary risks for cannabis merchants because they have had to work on a cash basis, which can create inefficiencies and increase the risk of theft or fraud. Any group that can offer a way out of this trap could draw business from across the states because cannabis vendors know that a better payment system will more than pay for itself.
The Cutting Edge of Technology
A technology and business development company whose motto is “Key to Cashless™,” MoneyTrac is providing a payment solution for cannabis and other high-risk business areas. MoneyTrac is achieving this by using one of the hottest new technologies of the past few years — blockchain computing.
Blockchain is a distributed ledger system in which electronic records are kept over an open network of participants rather than centralized in a single place. Its most famous use is as the foundational technology behind bitcoin and other cryptocurrencies. But it can also be used for other purposes, including supply chain management and smart contracts that automatically deliver their payments on completion.
Through cryptocurrencies, blockchain has allowed payments to take place outside of the conventional banking system. The creators of the technology intended this to remove the stranglehold of banks and governments on personal finance, thereby improving the efficiency and freedom of financial networks. For the cannabis industry, it means a way of making electronic payments without banks being involved, thus escaping cash-based transactions.
In early April 2018, MoneyTrac launched its blockchain payment system, MTRAC. It provides a payment system in which customers put their money in at one end and retailers are able to extract it at the other end. Customers simply charge up a digital wallet at an MTRAC kiosk or load it from their linked bank account or credit card, then use the money to pay for goods at any vendor using the scheme. In fact, the app can be used to generate a digital Visa or MasterCard gift card that can be used at any retailer that accepts those forms of payment. Banks don’t even need to be involved in the cannabis-buying process.
MoneyTrac’s system provides greater security for cannabis businesses and customers. It can also be used to increase business efficiency through the addition of inventory management, payment processing, and seed-to-sale tracking. For customers, it provides a secure, simple way to pay. For merchants, it is a complete way of tracking the flow of goods and money, increasing efficiency through clear, secure, integrated record keeping.
Wide Support Services
In developing an integrated payment solution, MoneyTrac has gained deep insight into the cannabis industry and how it works. It has also developed a team of employees and a network of contacts that allow it to provide wider support services.
The services MoneyTrac offers to clients include business development, sales and marketing, and guidance on compliance. With so many regulations in place around both cannabis and finance, it’s important for those running a cannabis business to understand and strictly adhere to the rules governing them. MoneyTrac can help in this complex area.
These extra services aren’t just a way to make additional income. They help ensure the long-term viability of the MTRAC payment system. If the companies using the systems are well supported, they are more likely to come out on top of the growing cannabis market, making MoneyTrac’s payment solution a crucial part of the industry.
Backed up by the extensive finance and payment experience of the Global Payout team, MoneyTrac offers a secure, efficient payment system for the cannabis sector. By adding other software and services, it is carving out a niche as an important support system in this growing industry.
A Complete Economic Ecosystem
Like so many sectors, cannabis is developing a broader economic ecosystem. A range of companies are stepping up to provide additional products and services related to cannabis.
Like Global Payout, MassRoots Retail (OTC: MSRT) is exploring the potential of blockchain. The company uses blockchain technology to power features in its business portal. The company provides a central hub for reviews of cannabis products and strains, as well as a dispensary finder. These are available through a phone app, making it easier for customers to find the right product and dispensary for them. MassRoots recently revamped the system to introduce new features and incentivize reviews.
Research and development are among the most important support services for the cannabis market. Legalization is making it easier for research to be carried out and the effects of cannabis to be understood. GB Sciences, Inc. (OTCQB: GBLX) works on this side of the market, developing refined cannabis strains that provide a better proportion of active ingredients. It is working with the University of Seville to bring a new time-released cannabinoid formulation to market. As the market grows, so will research into strains, delivery systems and new medical uses, providing more business for companies such as GB Sciences.
Lexaria Bioscience Corporation (CSE: LXX) (OTCQX: LXRP) is another of the companies focused on cannabis research. Its particular focus is on improving the effectiveness and flavor of orally consumed cannabinoids, for which work it has a partnership with the Canadian government’s National Research Council. Oral consumption has great potential to deliver the medical benefits of cannabis without the harmful effects of smoking, and so could be important in unleashing cannabis’s medical potential. With Lexaria’s out-licensing business model, this beneficial technology could be used by many companies, while boosting Lexaria’s research and profits.
General Cannabis Corporation (OTCQB: CANN) is providing a different sort of subsidiary business through Chiefton Supply Co. clothing brand. As cannabis culture spreads and becomes above board, the company is providing distinct, stylish clothes to go with a cannabis-influenced lifestyle. A recently announced distribution deal (http://cnw.fm/LcFR9) with national retailer Tilly’s will see the company reach a wide market.
As cannabis becomes more accessible, companies are finding a wide range of ways to profit from subsidiary services. From T-shirts to payment processing, services for this sector offer incredible potential for business growth and development.
For more information on Global Payout, Inc., please visit Global Payout, Inc. (GOHE).
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