Startups worth watching Payment startups are tapping the cannabis industry with solutions aimed at digitizing the historically cash-dependent sector. CanPay. The Colorado-based startup’s app lets customers at more than 800 cannabis dispensaries make Automated Clearing House Payments (ACH) payments by scanning a QR code at checkout. Partner merchants are required to bank with CanPay-approved financial institutions (FI) that are compliant with federal guidelines. SuperNet. Customers can use the fintech card to pay for products at 100 California dispensaries. SuperNet also processes transactions for the dispensaries and offers a loyalty program. POSabit. The Washington-based fintech offers point-of-sale hardware and software for cannabis dispensaries. POSabit recently expanded into several states, including Georgia, Texas, and West Virginia. Why it matters The cannabis market is huge—but federal regulation prevents mainstream FIs from offering payment services to customers and merchants. Legal cannabis sales in the US hit a record $17.5 billion in 2020—a 46% year-over-year (YoY) increase, per data from BDSA cited by Forbes. Overall sales are likely significantly larger if illicit marijuana sales are taken into account.
420 Intel – Marijuana Industry News, 05/11/2022 20:00:00