THE global cannabis industry is grappling with significant challenges in securing reliable banking and payment services following Mastercard’s recent decision to prohibit cannabis purchases on its debit cards in the US. This is in addition to the payment restrictions imposed by eCommerce platforms like Shopify in Europe.
Amid this financial limbo, Atalis Pay from Prohibition Partners emerges as a fresh source of optimism, introducing the first open banking payment gateway for the cannabis industry. With a commitment to further expanding financing payment services, Atalis Pay aims to facilitate safer, easier, and less risky trading of legal cannabis, while eliminating the reliance on cash transactions that currently pose significant risks to companies.
In the US, the federal illegality of cannabis creates a complicated regulatory environment, leading most banks to refrain from working with cannabis companies. Despite legalisation in several states, the inconsistency between federal and state laws has left financial institutions cautious, and reluctant to provide banking services to the industry. As a result, cannabis businesses often find themselves without access to fundamental financial services such as bank accounts, loans, and credit cards.
The situation is no different in Europe, where platforms like Shopify and Stripe impose stringent restrictions on cannabis-related businesses. This further hampers the industry’s growth potential and leaves many companies struggling to secure basic services needed for legal operation.
The obstacles faced by cannabis companies are not limited to just one aspect of the financial spectrum. Recently, Metro Bank, previously thought to be one of the few UK banks open to working with cannabis businesses, announced its decision to close all accounts related to CBD. This move came as a severe blow to the industry and highlights the broader troubles faced by companies in securing essential financial services.
READ MORE: Banking Blues For The Cannabis Industry
One of the key issues faced by cannabis companies is the inconsistency in the approval process for banking applications. Companies frequently encounter rejections with little or no explanation, leaving them without recourse or the opportunity to address any potential issues. This lack of transparency hampers the growth of cannabis businesses, as they struggle to navigate the financial landscape legally and securely.
Without access to proper banking services, cannabis companies are forced to operate in a cash-driven environment, making transactions risky and potentially exposing them to security and legal issues. Moreover, the absence of a business bank account also means that these companies cannot access other essential financial services, putting them at a significant disadvantage compared to other industries.
In this challenging climate, Atalis Pay emerges as a promising solution for the global cannabis industry. The platform’s introduction of the first open banking payment gateway for the industry marks a significant step towards bridging the gap between cannabis businesses and the financial sector. With open banking, Atalis Pay enables secure data sharing between financial institutions and authorised third-party providers, facilitating seamless transactions and improving transparency.
Jon Hogg, Managing Director of Atalis, commented on the company’s mission, saying, “Atalis Pay aims to revolutionise the way cannabis businesses access financial services. Our open banking payment gateway will pave the way for a more inclusive and secure financial ecosystem for the industry, allowing legal cannabis companies to operate with the same ease as other businesses.”
Atalis Pay’s vision goes beyond the introduction of the open banking payment gateway. The platform is committed to bringing further financing payment services tailored to the unique needs of the cannabis industry. By doing so, Atalis Pay seeks to empower legal cannabis businesses, promoting safer and more accessible trading, and unlocking the industry’s full potential.
As the cannabis industry continues to evolve and gain broader acceptance, the availability of reliable banking and payment services is crucial for its success. Atalis Pay’s pioneering efforts to bridge the financial gap offer hope to cannabis companies worldwide, enabling them to operate legally, securely, and with fewer risks associated with cash transactions. With the support of innovative financial solutions like Atalis Pay, the global cannabis industry takes a significant stride towards achieving its full potential as a legitimate and flourishing sector.
