Despite legalization of medical and recreational marijuana in nearly half the country, cash is still the only payment method accepted for all transactions.
As the banking situation continues to be a major obstacle for businesses involved with legal marijuana sales, Global Payout, a prepaid debit card processor, has created a payment system that will hopefully make it easier for pot-related businesses to have bank accounts and lines of credit.
Jim Hancock, Global Payout Chief Executive, told Market Watch that his company plans to work with state chartered banks in jurisdictions where pot is legal, allowing them to issue cards and hold funds.
“Now, people either take [the money] home and put it in a closet, use duffel bags, or even take it off shore in some cases,” Hancock said.
The company wants to make transactions between buyers and sellers cashless as well.
“Just like a debit card or credit card system in a restaurant; it works exactly the same,” Hancock explained.
The system will make it easier for state governments to monitor the industry, Hancock added, especially when determining whether dispensaries are paying their full taxes.
According to Hancock, the system, developed five years ago, is ready to be adopted now, but depending on which state takes it up first, there will be an integration and adoption period that could take up to six months.
