For several years since American states started legalizing marijuana, the most significant challenge has been the issue of dealing with finance since financial institutions such as banks and credit unions were wary of conducting business with marijuana companies. This is because marijuana is classified as a Schedule 1 drug under the Controlled Substances Act, hence making it illegal.
The marijuana industry has been forced to operate on a cash basis due to a lack of access to financial institutions, and this has led to a load of challenges such as slower payments and vulnerability to theft.
The inability of marijuana businesses to transact with financial institutions has affected the sector from the back end supply chain to the final consumer.
A platform that could revolutionize the financial system of marijuana businesses has been launched by two technology companies, Wayv and Hypur. Wayv has been added to Amazon to help marijuana companies sell their products.
The two companies provide marijuana business with a payment platform where a marijuana business can accept credit cards like for any other transactions. This allows marijuana brands to distribute products to retailers on credit. And Wayv auto-debits the retailers on the due dates.
The payment dashboard on the Wayv system allows brands to track payments for purchases, and due dates of retailers’ credits. The system also calculates taxes and fees automatically.
The payment platform is designed in a manner that ensures that the businesses are compliant in every single step. This ensures transparency by enabling marijuana companies to conduct digital transactions just like any other business.
Speaking to High Times, the CEO of Wayv, Keith McCarty, said that the payment platform is integrated with compliance systems, which makes it impossible to carry out noncompliant actions. The system creates a level of trust that allows the banks to embrace and adopt the system.
The Wayv platform provides marijuana business with a fast mode of digital payments system throughout the supply chain, and Wayv may eventually change how the marijuana industry operates.
Finance has been a significant issue in the marijuana supply chain, which eventually affects the consumers, said McCarty. Consequently, if money is not sufficiently flowing within the marijuana brands, it will be difficult to reinvest in raw materials and infrastructure to meet the demands of the consumers.
Wayv introduced a Dynamic Distribution Platform in the market earlier this year. The platform helps transform the marijuana supply chain into a design such as that of Amazon with a streamlined process. The system facilitates transactions between marijuana brands and retailers whereby retailers can shop brands, choose products, and place product orders from the easy to use interface. The products are then shipped to the retailers within a day using Wayv specialized logistics procedures.
California is the only city where businesses and consumers can use Wayv. However, the company is looking to expand to other states.
Speaking to High Times, McCarty said that the turnkey solutions platform was designed for the marijuana industry. He also adds that the platform was built by experts who have extensive knowledge of cannabis.
Industry watchers see the introduction of this payments platform as good news for marijuana industry actors like Youngevity International Inc. (NASDAQ: YGYI) and LiveWire Ergogenics Inc. (OTC: LVVV) who now have one more option to handle their payments digitally.
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