POSaBIT Systems Corporation (CSE:PBIT,OTC:POSAF) is a fintech company that has developed a unique and innovative blockchain-enabled payment processing and point-of-sale (POS) system for cash-only businesses. The system is fully-compliant in each state and provides cannabis companies in the US with the opportunity to decrease the risks associated with operating on a cash-only basis.
In the US, federal cannabis legalization has been under the spotlight as more states adopt cannabis-friendly legislation despite it being an illegal substance at the federal level. Several bills have been proposed to protect banks and cannabis companies from federal prosecution. If the bills are passed, cannabis companies could be allowed to access the capital that they need to operate. It also opens opportunities for POS service providers to enter the market.
“There’s no industry — whether it’s the production and sale of cannabis or the production and sale of a cup of coffee – that can operate safely, transparently or effectively without access to banks or other financial institutions and traditional services,” said POSaBIT Co-Founder and CRO Jon Baugher. “That’s where we thought we could leverage the use of digital currency.”
POSaBIT intends to be ahead of its peers by establishing its system in legalized states throughout the country before legalization occurs. To date, POSaBIT has deployed its system in over 120 stores across California, Colorado, Oklahoma, Arizona, Nevada, Washington and Oregon. The company has plans to expand into and establish itself in each legalized state prior to federal legalization in order to capitalize on the national market.
The payment processing and POS platform is easy to use and allows cannabis companies to move away from a cash-only operation by offering debit card payments. The platform also collects data for retailers and manufacturers, helping them address the demands of the market more effectively. Aside from these benefits, the system also provides a 60 percent increase in sales when compared to cash-only purchases, making it an easy switch for cannabis companies looking to decrease the risks associated with cash-only operations.
Aside from the cannabis industry, POSaBIT also offers its solutions to a variety of other industries. The company has provided its services to a number of major brands such as Nike Inc. (NYSE:NKE), GoPro Inc. (NASDAQ:GPRO) and Guess? Inc. (NYSE:GES). The technology is also deployed in various cannabis stores across Washington, Oregon, Nevada, California, Arizona, Oklahoma, and Colorado, including The Reef dispensaries in Nevada, Starbuds dispensaries in Colorado, and Bud Huts dispensaries in Washington.
POSaBIT has attracted the attention of Salal Credit Union, who openly displays the company’s information on their website the Digital Currency Group (DCG), a venture capital company focused on the digital currency market. DCG has been a strategic investor in and champion of the company since its inception.
“We see the use of digital currencies as a payment rail growing in industries which have had challenges accessing traditional banking services in the past,” said Digital Currency Group Founder and CEO Barry Silbert.
POSaBIT’s management team and board hold approximately 37 percent of the company’s shares. The company is led by a team comprised of technology entrepreneurs: CEO/Co-Founder Ryan Hamlin (former Microsoft executive), CRO/Co-Founder Jon Baugher (VP at PlaceFull), CTO Andy Sweet (founder of Shop & Support), and board chairman Jeff Dossett. Dossett is the Executive Vice President of Sales and Marketing at Impinj (NASDAQ:PI), a manufacturer of radio-frequency identification devices and software. He has also served in executive roles at Porch.com, GOOD Worldwide and Demand Media; now, Leaf Group Ltd. (NYSE:LEAF).
POSaBIT Company Highlights
- POSaBIT offers an innovative blockchain-based payment processing and POS system, which is a first-to-market software solution for managing cannabis retail stores.
- The payment processing and POS system is one of the only compliant systems in the US.
- Sales through the POSaBIT system are typically 60 percent higher than the cash-only purchase.
- The POS system is currently used in over 120 stores across California, Colorado, Oklahoma, Arizona, Nevada, Washington and Oregon.
- The company provides its POS system to big brand names such as Nike, GoPro, Safeway, & Warner Brothers, and its payments solutions to such major cannabis chains as The Reef dispensaries, Bud Hut, and Starbuds, among many others.
- POSaBIT processed $85 million in payments in the food services industry in 2018.
- Salal Credit Union openly acknowledges its relationship with POSaBIT despite the federal stance on cannabis.
- POSaBIT is led by an experienced management team and board of directors comprised of technology entrepreneurs.
- Management and the board hold approximately 37 percent of shares.