Seattle, Washington--(Newsfile Corp. - April 15, 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 CannaTrac's innovative alternative to cash handling in the cannabis space.
Image: CannaTrac
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The COVID-19 outbreak has majorly disrupted nearly every business - including the nascent cannabis industry. While cannabis sales have spiked due to greater demand, businesses face unique risks as they adapt to rapidly changing consumer behaviors. More consumers are shopping online and ordering for delivery, while brick-and-mortar locations are looking for ways to reduce risk to their cashiers and enforce social distancing rules.
Graph: Change in total cannabis orders tracked by Weedmaps vs. first week of Jan. 2020
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In this article, we will take a look at some unique risks facing the cannabis industry and how CannaTrac is helping to address them with CannaCard, online and retail merchant accounts, and its mobile solution for cannabis delivery workers.
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Dispensaries Remain Open
California became the first state to implement "shelter-in-place" orders designed to keep citizens at home and slow the spread of COVID-19. After briefly classifying cannabis businesses as non-essential, the state quickly reversed course after a widespread public outcry. Governors and public health officials throughout the country have since deemed cannabis businesses as "essential" operations that can remain open.
"Most of the American public and an increasing number of government leaders stopped buying into the demonization of cannabis years ago," Karen O'Keefe, state policies director for the Marijuana Policy Project, said to Forbes. "Now, not only have two-thirds of states recognized that medical cannabis should be legal-with 11 legalizing adult-use-many are recognizing that safe access to cannabis is essential."
Medical cannabis patients are the biggest concern since they rely on the plant in the same way that they rely on traditional pharmaceuticals. Since many medical cannabis users don't jump through the hoops to become officially certified medical users, recreational businesses have become crucial access points that must remain open. Cannabis delivery providers have also seen a sharp increase in business as the crisis has unfolded.
Cash Handling is Risky
Public health experts, including the World Health Organization (WHO), believe that SARS-COV-2, the virus that causes the COVID-19 disease, is transmittable through "fomites" - or surfaces, including paper money, or "dirty money", that have been handled by an infected person. Many recommend using credit cards or other contactless forms of payment where possible to protect both buyers and cashiers that must handle cash from hundreds of customers throughout any given day.
"The belief is that these viruses can stay on surfaces in their fully active states for at least 10 days. That includes cash and all kinds of other surfaces that people normally touch," Dr. Sanjay Maggirwar, chair of the George Washington University School of Medicine's department of microbiology, immunology and tropical medicine, told CBS MoneyWatch. "So certainly with the coronavirus, cash handling is a concern."
The problem is that about 6.5% of Americans lack any bank accounts and 18.7% are underbanked, according to the Federal Deposit Insurance Corp. In addition, many cannabis businesses have struggled to secure merchant accounts that are necessary to accept any form of electronic payments. Many customers visiting dispensaries are forced to pay in cash, which is risky for both consumers, merchants, and the community. ATM's recirculate "Dirty Money".
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In addition to the United States, emerging markets have turned to mobile payments as a way to curb COVID-19 by reducing in-person cash transactions. Africa is using digital finance as a means to stem the spread of COVID-19. As COVID-19 cases began to grow in the continent's major economies last week, Africa's leader in digital payment adoption - Kenya - turned to mobile-money as a public health tool.
CannaTrac Mitigates Risk
The robust demand for cannabis products, the risks associated with cash payments, and the underbanked nature of dispensaries have created a perfect storm for COVID-19 risk.
CannaTrac's handheld payment device for deliveries
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The CannaCard is a turnkey, cashless payment solution that works as a standalone payment platform or integrates with an existing point of sale (POS) system. By eliminating cash handling, the technology can help cannabis retailers mitigate the risk of COVID-19 to their customers, employees, and the surrounding community.
CannaTrac is also helping online merchants and delivery services as consumers shift away from brick-and-mortar locations. Delivery services can utilize the cashless payment system through CannaTrac's next-generation mobile handheld device that's PCI compliant and FCC approved. Features include NFC (Near Field Communication), EMV Level 1 & 2, Signature Capture, 4G Cellular with optional WiFi, 5MP Camera, and an Integrated Thermal Printer.
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Looking Ahead
The COVID-19 outbreak is having a profound impact on the cannabis industry. The heightened risk of cash handling and lack of banking solutions has put the cannabis industry at risk, while brick-and-mortar retailers have shifted to online sales and deliveries. CannaTrac's CannaCard and other services provide a compelling solution to these problems, helping to eliminate the need to handle cash and empowering online purchases and delivery.
CannaTrac is currently raising up to $20 million in an open round, which it intends to use to expand its IP, for operations, and for working capital. For more information, visit the company's website at www.cannatrac.com or signup to download their investor presentation and receive corporate updates.
Click here to read the full article:
https://www.cannabisfn.com/cannatracs-contactless-payments-provide-a-safer-way-for-consumers-dispensaries-and-delivery-services-to-operate-in-a-covid-19-environment/
CannaTrac Company Contact:
Tom Gavin CEO
tgavin@cannatrac.com
CFN Media Contact:
Frank Lane President
flane@cannabisfn.com
About CFN Media
CFN Enterprises Inc. (OTCQB: CNFN) is the owner and operator of CFN Media, the leading agency and digital financial media network dedicated to the legal cannabis industry.
For Visitors and Viewers
CFN Media's Cannabis Financial Network (CannabisFN.com) is the destination for savvy investors and business people profiting from the worldwide cannabis industry. Viewers will see breaking news, exclusive content and original programming involving the people, companies and investments shaping the industry.
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CFN Media is a leading agency and financial media network dedicated to the cannabis industry. We help private, pre-public and public cannabis companies in the US and Canada attract capital, investors and media attention.
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Disclaimer
The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
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