Seattle, Washington–(Newsfile Corp. – March 25, 2020) – CFN Media (OTCQB: CNFN), the leading agency and financial media network dedicated to the North American cannabis industry announces the publication of an article discussing cashless banking systems for the cannabis space and beyond.
CannaTrac Technology Inc.
Cannot view this image? Visit:
https://picante.today/wp-content/uploads/2020/03/53766_cfncan1100.jpg
The legal cannabis industry has had its ups and downs since its inception just a few years ago. Legislation and licensing decisions helped boost some companies, while overcapacity and regulatory issues depressed others. The best companies have found ways to diversify their revenue streams to generate consistent and sustainable growth over time.
In this article, we will take a look at CannaTrac Technology Inc. and how it has diversified its revenue by providing merchant processing solutions to the hemp-based cannabidiol (CBD) space at some of the lowest rates in the industry.
Are you an accredited investor? Click here to receive investor information and corporate updates.
Hemp-based CBD on the Rise
Projections predict that the market for CBD products could surpass $20 billion by 2024, according to BDS Analytics and Arcview Market Research, which represents a blistering 49% compound annual growth rate. These figures suggest that CBD will make up just under half of the total cannabinoid (THC and CBD) market in the United States there by, making it a significant market opportunity.
Unlike THC-based products, CBD products are widely sold in both online and offline shops. The U.S. Farm Bill legalized the production and sale of hemp-based products and the Food and Drug Administration has been warming up to the idea of working with CBD manufacturers to come up with a clear regulatory framework after years of back-and-forth.
Roughly 43% of CBD products are purchased through general online retailers, which is more than is purchased through health food stores, organic grocery stores, convenience stores, or specific brand shops. The convenience of shopping online and having products shipped appears to resonate with many CBD consumers that tend to be well-educated individuals over 40.
CannaTrac Eases Payments
The biggest challenge for many online shops selling CBD products is payment processing. These products are often considered to be “high risk” by banks. In addition, many of these companies struggle with differentiating their products and retaining customers following an initial purchase – especially with rising competition.
At the same time, mobile payments are becoming increasingly popular among consumers that are more comfortable with the technology. eMarketer found that the U.S. mobile payments market reached $98.8 billion in 2019, representing a 41% compound annual growth rate.
CannaTrac is well aware of these challenges. CannaTrac has an established record of working within the cannabis industry to establish bank accounts. The company’s CannaCard® solution is a payment and loyalty rewards system that’s akin to Starbucks mobile payment product – enabling customers to make payments and accumulate loyalty points with each and every purchase.
