Talk about a rise industry. By the final end of 2022, the global cannabis industry will have a $22 billion market value, with a jump to $146 billion expected in just three years. It creates an opportunity that is incredible repayments players trying to include innovation towards the industry in a variety of ways. Without competition through the major incumbent players just like the card systems and big banking institutions — it presents a greenfield that is valuable which to build.
Green, but complicated, AeroPay’s founder and CEO Daniel Muller told PYMNTS in a conversation that is recent. The main reason cannabis does not have major player competition is because of its complicated status that is legal. Though legal and taxable in some form in more than half the U.S. states, cannabis remains a Schedule 1 narcotic that is firmly illegal under federal guidelines in the remaining states, leaving national banks and the payments networks hesitant to touch it for fear of running afoul of the law.
What cannabis dispensaries and other industry players want and need, Muller said, is a way to pay that doesn’t involve handling mountains of cash, especially now when enthusiasm for cash handling across all parts of retail have plummeted to lows that are all-time. However For dispensaries, their solution alternatives from going beyond the money into electronic are highly limited.
“Most others are actually producing a approach that is bottom-up really revolving [around] solutions layered on top of the gray and fuzzy legal area,” Muller said.
AeroPay, which recently announced a partnership that is strategic integration with cannabis pc software and logistic provider Blackbird, is looking to just take on cannabis industry to supply it a fresh form of solution — something created through the top down seriously to be completely electronic and completely compliant in terms of going funds from point A to aim B. Muller stated the target is to bring some quality towards the repayments procedure in a multi-billion buck industry that extremely often does not have it — mostly by partnering with those banking institutions being comfortable banking the area. Organizations, he stated, it may be otherwise difficult for cannabis company organizations discover.
“In basic,” Muller said, “ it’s pretty dissimilar to find those lovers. We achieved it by presenting our solution, ahead of our entry towards the cannabis market, to convey regulators while saying, ‘We want our technology to aid eliminate money through the equation, offer seamless monitoring of deals on the market, and in the end produce a source that is seamless of flows toward state-level governments for tax revenue collection.’ ”
That, he said, sold regulators on the product, which in turn helped sell their financial service partners with whom they can now directly onboard businesses.
Moreover, The purview of the solution they are developing is wider while this solution is most obviously connectable to the dispensary space — where the cash-connected nature of the
industry is most apparently a problem. Because powering those dispensaries are growers, brands and distributors that most require a much better option to purchase products that is legitimately digitized and compliant.
“We’re really a solution that is full-service the complete value chain,” he said. “So AeroPay is created as a payment solution that may easily work as in B2B as it can in consumer retail payments. We really have clients currently throughout the supply and value chain: wholesalers, distributors, ancillary businesses, technology companies, all the way to your standard dispensary that is retail distribution organizations throughout the board. We actually believe you can easily serve all of those use cases without having to be specific in one area or another.”cannabisThey if you build a platform in a flexible way do not envision their product as a niche solution, he said, so much it working through the value chain and in a multi-vertical way as they see. Because they do while they are making a big investment in the
HEALTHCARE PAYMENT EXPERIENCE REPORT – JANUARY 2021 (*)About:(*) The Healthcare Payment Experience Report, a PYMNTS and Rectangle Health collaboration, is based on a survey that is census-balanced of than 2,000 consumers’ medical payments experiences while the challenges they face. The report reveals key insights into just how providing payment that is flexible and digital-first experiences might help medical providers keep their patients from searching for health care solutions somewhere else.(*)Recommended for you(*)