CannabisNewsWire Editorial Coverage: The legal cannabis industry, which anticipates massive growth over the next few years, is seeing constant innovation as companies move to provide essential services needed for that growth.

• The global cannabis industry, which was worth $7.7 billion in 2016, is expected to reach $65 billion by 2023.
• The industry’s upward trajectory is happening despite legal restrictions that have forced cannabis businesses to seek alternative payment solutions.
• These solutions are among many innovations in the sector, which has a strong strand of research and design.

Net Element (NASDAQ: NETE) (NETE Profile) recently launched a compliant, secure payment processing solution focused on serving the legal cannabis industry. Medical cannabis company Tilray, Inc. (NASDAQ: TLRY) is supplying materials for a range of research projects around the world that are studying cannabis’ potential in medicine. Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has received massive investment from a beverage company and is likely to be one of the first companies selling cannabis-infused drinks. And the first U.S. Food and Drug Administration (FDA)-approved cannabis-based drug has just gone on sale from GW Pharmaceuticals Plc (NASDAQ: GWPH). Meanwhile, new uses for the plant are being found, as exemplified by Cronos Group, Inc.’s (NASDAQ: CRON) (TSX: CRON) research on the use of cannabis in skin cream.

To view an infographic of this editorial, click here.

Cannabis Payment Solutions

The cannabis industry is currently growing at an astonishing rate. Since 1996, its use for medical purposes has become legal in 31 U.S. states and Canada as well as a number of other countries around the world, most recently the United Kingdom. This remarkable pace of change has been accompanied by the emergence of related industries producing industrial hemp, cannabidiol (CBD) oil and support services for cannabis growers.

Despite this, legal cannabis sellers in the United States face serious problems in accessing basic business services. Because banks and payment providers are often wary of working with cannabis companies — even legal ones — these companies are forced to either accept the risks and inefficiencies of a cash-based business or seek alternative payment options. Fortunately, payment solutions are becoming increasingly viable.

The Challenge — And Opportunity

The challenge — and opportunity — with cannabis payment processing is significant enough to have drawn in businesses from outside the sector, such as global technology company Net Element (NASDAQ: NETE).

With the growth of the medical cannabis market has come more people are looking for one of the sectors most in-demand products — CBD oil, which is the concentrated liquid extract of the cannabis plant. Previously most CBD products were sold in head shops, but increasingly these products are found on the shelves of natural food stores, beauty aisles, cafes and doctors’ offices. This spread to other venues has created an even greater need for smooth transactions between merchants and consumers.

While the majority of states now allow the legal sale of some form of cannabis or its derivatives within their boundaries, cannabis providers may still find it challenging to find payment options that allow mobile payments, offer value-added transactions, and are easy for both the business and the end user. Fortunately, companies such as Net Element are positioning themselves to provide exactly what this underserved industry is looking for.

These alternative solutions, including Net Element’s Aptito and Unified Payments systems, solve the problem by offering a compliant, seamlessly integrated payment solution that is simple to use. The systems rely on the latest digital technology, which allows retailers to accept payments outside of conventional routes while remaining user friendly for customers.

More Sales, More Payments

It’s a good time for companies to expand their reach in the cannabis market, as Net Element is doing. The industry is experiencing a period of huge growth. According to recent research, the legal cannabis market was worth $7.7 billion in 2016 and is forecast to reach $65 billion by 2023, a staggering 37 percent rate of compound growth per year.

Various factors are playing into this. Cannabis is already a huge industry, but one historically run by criminal gangs. One of the reasons for wide legalization is to take that trade out of criminals’ hands. In the United States, 70 to 75 percent of the cannabis trade is still illegal, but only 30 percent of it is illicit in states with legal options on the books. As legal cannabis from regulated suppliers becomes more widely available, the expectation is customers will move away from illegal businesses. The customer base is already there, and it’s huge.

Ongoing changes in the legal landscape are also a factor. The White House has hinted that it is considering liberalizing federal cannabis laws. Shifts in medical-use cannabis are taking place in Germany and the United Kingdom. In the United States, the current Farm Bill has enough support that it is expected to legalize the widespread cultivation of industrial hemp for nonrecreational cannabis uses.

This last change ties into an unexpected and significant trend in the cannabis industry. Hemp, a nonpsychoactive form of cannabis, was used in manufacturing rope and cloth before being made illegal during the political campaign against marijuana. Now, it’s returning to legality as a source of a new material — CBD oil. This active ingredient of cannabis is used in a growing number of health and well-being products. The hemp and CBD parts of the industry alone are set to reach $22 billion by 2022. While CBD sales are still largest in the stores supported by companies such as Net Element, these products are moving towards the mainstream via health stores, beauty aisles and cafés.

Rising to the Problem

A growing sector with a need for innovative solutions is the perfect place for a company such as Net Element to act on its vision.

“We are excited to launch a legal cannabis payment acceptance solution to meet the needs of sales partners and merchants for this emerging market,” commented Vlad Sadovskiy, president of integrated payments for Net Element. “Addressing the needs of our merchants is our number one priority and we work closely with various vendors to bring our merchants state-of-the-art payment acceptance solutions.”

The cannabis sector is more than just cultivators and retailers. It also includes the companies that support those businesses, companies that are set to thrive if the industry maintains its spectacular growth. The industry’s circumstances have ensured that it has become a forward-looking one.

A Future-facing Industry

Cannabis companies constantly have an eye on the state of the legal landscape and the new opportunities it may create for the market. Because those companies are working in an industry that has been illegal, industry-building techniques and products are only beginning to be properly discussed now, with innovations in research and design being announced as a result. Constraints such as those established by the U.S. government are forcing them to find technological solutions to problems other companies don’t face.

Medical cannabis company Tilray, Inc. (NASDAQ: TLRY) prides itself on the part it plays in pushing the industry forward. With a strong emphasis on industry and innovation, Tilray is committed to research that will expand the possibilities of cannabis, carried out in partnership with hospitals and universities. It is currently supplying products for a range of clinical trials in Australia and Canada that promote the safety and effectiveness of cannabis use in tackling ailments such as childhood epilepsy and chemotherapy-induced nausea.

Research and design work at Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has been super-charged by a recent investment of billions of dollars from American drinks company Constellation Brands. One of the reasons for Constellation’s move into cannabis is the potential for drinks infused with cannabis and CBD. The partnership with Canopy Growth is likely to lead to novel products that will become part of Canada’s large licensed cannabis market next year.

GW Pharmaceuticals Plc (NASDAQ: GWPH), a company with a strong history of research in the cannabis sector, has created the first plant-derived cannabinoid medicine to be approved by the FDA, which has just become available by prescription in the United States. This introduction of a federally approved cannabis-derived medicine is an important moment for the industry and may lead to the softening of political and regulatory attitudes that have previously held business back.

Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) is investigating the use of cannabis in a relatively new area – skin care. The company has announced that it will be working with the Technion–Israel Institute of Technology to research the use of cannabinoids in skin care, research with potential to carry cannabis into more parts of the high street and the consciousness of more consumers.

From payment solutions to new products, the cannabis sector’s growth is fueling a rich wave of innovation.

For more information on Net Element, visit Net Element (NASDAQ: NETE)

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.