Access to banking services is one of the biggest challenges the cannabis industry faces. The inability of the majority of companies to accept credit cards or to deposit cash creates enormous compliance and safety issues. Joel Warner discusses the topic in-depth, profiling several of the entrepreneurs trying to address the issue with workarounds, including companies like Tokken, which he covers extensively, as well as Greenito, Hypur, Kind Financial, PayQwick and Spare.
Pending federal legislation, if it advances, or rescheduling could instantly wipe out the need for these industry-specific solutions, which makes investing in these startups potentially risky. At the same time, those who are able to build traction could become acquisition candidates. Additionally, it could remain a high-cash business, which could provide opportunities for some of these companies.
Read Joel Warner’s “Marijuana Startups Like Tokken Aim To Provide The Cannabis Industry With Banking Services, But Will Legal Shifts Put Them Out Of Business?”: http://www.ibtimes.com/marijuana-startups-tokken-aim-provide-cannabis-industry-banking-services-will-legal-2349534