Payment solutions provider Global Payout has designed an electronic, closed-loop payment system to address the challenges faced by the medical and recreational marijuana industries.
The San Diego-based company hopes to partner with state and local governments where medical and recreational marijuana have been legalized, Global Payout said in a March 18 release. The company said it is in discussions with banks across the U.S. regarding use of the payment system.
The system will rely on reloadable closed-loop cards that can limit spending and usage of marijuana as governments see fit. The cards, which would initially be loaded by the dispensary when issued, could later be replenished with cash at participating retailers, through bank accounts and from credit or debit cards.
Global Payout also plans to allow additional information to be included on the cards, so that they can function as forms of identification if deemed necessary by government authorities. Beyond reducing the risks of excessive cash on hand and robbery for retailers, the cards could also help governments in gathering taxes daily via real-time monitoring of cannabis transactions.
"Our platform aims to help legitimize the financial and compliance aspects of the industry," said Jim Hancock, CEO of Global Payout, in the release. Hancock added that his company developed the platform "over the past several years," but waited until the legal marijuana industry gained wider acceptance before unveiling the product.
In addition to the payment system, the company also said its existing business-to-business platform, Consolidated Payment Gateway, can support payments between retailers and growers or suppliers.