Despite a total of 28 states having now legalized marijuana in some form, the U.S Drug Enforcement Administration still classifies cannabis as a Schedule 1 substance, alongside heroin and LSD. With this mind, it has been hard for the banking industry to support legal marijuana businesses.
Because such businesses have fewer options in opening bank accounts with national banks, they are pressured to accept cash payments, making them vulnerable to all of the issues associated with operating a cash business. Cash transactions make cannabis businesses prime targets for theft and break-ins, not to mention the gap left open for certain business owners to commit tax fraud.
According to a new report published by Arcview Market Research, people in North America spent just under $7 billion on legal marijuana products in 2016, over 30% more than the previous year. The report continues to explain that the cannabis industry is one of the fastest growing in the world and that sales are expected to increase to over $21 billion by 2021.
In spite of the growth, many still believe there are too many potential problems that could be solved by opening new doors to banking services. A letter to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) (http://dtn.fm/1apB1) states, “The fledgling legal market for marijuana is around $7 billion, a figure that’s dwarfed by the overall $50 billion US market, most of which remains illegal. This business environment is an invitation to tax fraud, robberies, money laundering, and organized crime.”
However, there are companies such as SingleSeed Payments, a subsidiary of Singlepoint, Inc. (OTC: SING), that are filling the gap for this increasing demand. SingleSeed is a leading payment solution provider to the cannabis industry, offering non-cash payment solutions to its customers, making their businesses safer and more efficient while discouraging illegitimate transactions.
The company offers three main services: Cashless ATM, Pay by Text, and Text Message Marketing. Cashless ATM and Pay by Text allow customers to pay for their products without the need for physical money, while Text Message Marketing enables cannabis businesses to communicate with customers, increase loyalty, and drive sales through simple text messages.
For more information, visit the company’s website at www.Singlepoint.com
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