Glance Sidesteps Into Cannabis Market With Mobile Payments
There’s been plenty of movement in the legal marijuana sector, featuring Attorney General Jeff Sessions making announcements that look like a full-on drug war focused on marijuana about to start. Yet companies seem to be carrying on as if those plans will ultimately buckle, exemplified by Glance’s partially-owned subsidiary Cannapay, which recently signed a new deal bringing cash not only to itself, but also to Glance.
The agreement between Cannapay, Cannabis Big Data, Cannapay’s Juve Wellness Inc. and Fobisuite Technologies Inc. calls for Cannapay to bring in $4 million worth of pre-sales licensing and product, with $1 million going to Glance Technologies in a sublicense for Glance’s mobile payment technology. Meanwhile, Fobisuite will bring in its USB serial interface geared toward authenticating cryptocurrency in a retail environment. That interface also serves as a mechanism for data collection and analysis, which is an increasingly vital part of a retail operation.
From there, Cannabis Big Data will take the combination of Fobisuite and Cannapay technologies to create a complete retail-ready package that can accept several different payment methods, including various cryptocurrencies. Then, finally, Juve Wellness can step in to provide the whole thing under a white-label distribution strategy, which allows individual firms to brand the solution as need be.
While many marijuana-based operations are cash operations—which can mean quite a bit of risk in and of itself unless regular bank runs are made—being able to take mobile payments tools, including cryptocurrencies, can drop that risk substantially because there’s less on hand to immediately take.
The biggest problem here, however, is the distinct possibility that the government may well pull the rug out from under the entire marijuana operation. There are already some referring to Sessions’ plans to pursue pot as “idle threats,” and that’s certainly a possibility. But to go making multi-million dollar deals on the premise that “the government might be bluffing” does seem a bit weak as justifications go.
Perhaps they’re betting that arguably the ultimate in populist presidents, Donald Trump, will ultimately turn marijuana into a states’ rights issue and let the individual states make the call. Still, in the end, should marijuana still have a place in the United States going forward, this new deal will help make mobile payments a part of it all.