With the sales of medical marijuana expected to grow exponentially in the coming years, the cash only payment system currently in place will see a challenge from a new mobile app designed to streamline marijuana payment processing. Itonis, the maker of the MyECheck proprietary mobile app, plans to market its services to medical marijuana dispensaries in order to make marijuana payment processing seamless. There will be a reasonable per transaction cost that will generate revenue for the company which provides cash free point of sale facilitation.
Currently all dispensaries despite the legality of the sale of marijuana in its respective state, must conduct all business with cash only policies due to banking limitations. The mobile app however is designed to function as an electronic check and would allow safe and secure money transfers between transacting parties. This would bridge the gap that is missing in marijuana sales and marijuana payment processing.
Medical and recreational marijuana sales are expected to grow significantly in the next years, especially with the legalization of marijuana use in Colorado and Washington recently. In Colorado for example the Joint Budget Committee has projected marijuana tax revenues to be more than $610 million over the course of the next year and a half.
The company’s CEO, Mark Cheung is confident that the potential revenue stream from the transaction fee the company will charge for each transaction will push Itonis into a new sector that will create financial gains for the company. Initially incorporated in Nevada on July 5, 2005 under a different name, Kenshou, Inc. later changed its name to Itonis on December 2, 2005. Itonis’ recent push to enter this market could break new ground as there is a clear gap in marijuana payment processing for dispensaries currently.
The company could not only become a new marijuana payment processing platform, it could also gain traction with small businesses. Many other companies have had success marketing themselves as simple payment platforms that provide a basic yet crucial service. PayPal and Square have both become highly profitable offering payment processing for a nominal fee.
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