US cash-intensive cannabis businesses (420s) are looking for ways to meet customer demand while struggling under federal prohibition. Cryptocurrencies are increasing in popularity with 420s, and now Zenapay is entering the market with its own bitcoin solution.
The US states comprising its contiguous west, if outliers include Alaska and Nevada, is home to fifty-two million people. That is an enormous market. They also happen to be the bulk of states that have legalized cannabis for personal use, medicinal use, and sale.
Tension arises between all such states and the federal government because the federal government does not agree with voters’ will.
Beyond criminality, issues of banking and finance come into play. The federal government is given wide jurisdiction over banking and money, and financial institutions are wary of running afoul of federal laws.
In practical terms this means bank accounts, access to lines of credit, and myriads of financial products are in practice forbidden to 420 companies.
Much as it was on the black market, 420s are reliant almost exclusively upon cash.
Mounds of cash on hand is not only a logistical nightmare in a modern economy, it’s also a real security issue. And with twenty more states coming online, passing slimmed-down versions of legalization/decriminalization, the cannabis market is looking for relief.
“Statistics from financial services firm Cowen & Co showed legal cannabis was a $6 billion industry last year, and is expected to grow to $50 billion by 2026,” RT online reports.
Population numbers and these projections are enticing payment service providers into the cannabis market.
The latest such example is a company out of Chicago, Epazz. It’s an over-the-counter publicly traded business software concern, betting rollouts early winter of this year in Apple’s App Store, and later for Android, will go a long way in making 420s more efficient and safer.
Zenapay is a one percent transaction fee, point-of-service (POS) solution. It boasts online and in-store bitcoin purchases capability using proprietary software, allowing for customer anonymity and for 420s to lessen cash burdens.
“We are filling a large need in the cannabis community,” the company’s press release quoted its CEO Shaun Passley. Merchants, he said, “due to the stringent limitations by the standard banking systems” simply cannot be banked.
A PoS with bitcoin functionality eliminates these issues.
Entrepreneurial bitcoiners, regardless of niche, are constantly looking for POS services to keep accounting straight as they look to drop cash dependency for bitcoin.
If it proves successful, Zenapay says it will offer payroll services, e-commerce stores, inventory tracking, and compliance features going forward.