SEATTLE, WA – ( NewMediaWire ) – 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.
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.
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.
CannaTrac Technology Inc.
Last year, the company aligned with top-tier merchant processors focused on CBD retailers that enables payments into their e-commerce platforms and brick & mortar stores. This allows medium to high risk merchants to benefit from some of the lowest payment processing rates in the industry.
Well-Positioned for Growth
CannaTrac® developed the CannaCard® to provide consumers and retailers with a convenient way to benefit from the increased safety and convenience of cashless purchases within the legal cannabis industry. By capturing early market share, the company aims to become the go-to payment solution for the cannabis, CBD, and many other industries.
In addition, the company is rapidly scaling its merchant base. We offer some of the industry’s highest payouts to Independent Sales Organizations, or ISOs, that are bringing in accounts to CannaTrac on a daily basis. These sales teams reduce the need for in-house sales and help scale higher revenue with a minimal cash outlay.
In addition to diversified revenue streams, the company partnered with Valid USA Inc. in late-2019 to expand its CannaCard® product around the world. Valid is best known as the fifth largest producer of SIM cards in the world and one of the top ten manufacturers of banking cards with 6,000 employees across 16 countries.
The company also aligned with Pacific Banking Corp. to provide state-licensed dispensaries with the ability to apply for CannaCard® and PBC banking services with a single application. For many customers, it’s the first time they have an opportunity to access much-needed traditional banking services and payment processing.
CannaTrac is currently raising up to $20 million in an open round. The company intends to use the proceeds from the capital raise to expand its IP, for operations, and for working capital.
Click here to read the full article: https://www.cannabisfn.com/cannatracs-diversified-revenue-streams-create-a-baseline-for-consistent-sustainable-growth/
CannaTrac Company Contact:
Tom Gavin CEO firstname.lastname@example.org
CFN Media Contact:
Frank Lane President email@example.com
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