Through their smartphones, the service will enable retail customers to pay for goods at any participating dispensary without using physical cash. It will also present dispensaries, growers, and other legitimate participants of the industry with the opportunity of carrying out non-retail transactions among themselves in digital payments.
The Company believes that the emerging legal cannabis industry where retail and non-retail transactions, including vendor payments and payroll, are almost exclusively paid for with cash presents a real challenge for financial institutions. Concerned about the evolving conflict between federal and state laws, they are eager to avoid the inherent risks associated with this cash-intensive sector. It is widely acknowledged that many are unwilling to go to the expense of establishing and maintaining the type of thorough due diligence program for this emerging market at the present time in order to comply with growing demands of Know-Your-Customer (KYC) guidelines, anti-money laundering regulations, and the US Patriot Act. As the result, traditional banking and payment solutions have been out of reach for the vast majority of cannabis businesses.
Vemanti Group's new planned subsidiary intends to offer a technology platform empowering the legal cannabis industry to transact safely, securely, and remain fully-compliant via a cash-free mobile payments service. The Company's CEO has an extensive background in providing mobile banking, commerce, security, and payments solutions to banks and financial institutions and intends to apply that experience to the new subsidiary.
"The cannabis industry needs access to digital payments in order to grow, and consumers want a safe and secure way to purchase marijuana products without always relying on cash. Our goal for the new subsidiary is to launch a service that alleviates the risk of cash transactions and helps dispensaries monitor and record data needed to address concerns about violating anti-money laundering laws, with the long-term goal of moving transactions away from cash altogether. It will comply with every relevant regulatory requirement and provide a sustainable solution for the cannabis industry", commented Tan Tran, CEO of Vemanti Group.
Consumers will be able download an app which acts as a digital wallet to their smartphone and link their bank accounts or credit or debit cards. They can then pay using the app at participating dispensaries. At the point of sale, money is transferred from the consumer's account and issued to the dispensary. Dispensaries can choose to leave the funds in their account, use them to pay other participants of the same system, or transfer funds out to a bank account. All transactions will take place in a secure proprietary cloud-based infrastructure.
Going forward, the Company plans to enhance this service to work as a "mobile shopping mall" with Point-of-Sales (POS), CRM, and team collaboration integration available to the dispensaries via Software-as-a-Service (SaaS). Consumers will be presented with multiple "mobile shops" plus different fulfilment options and customer loyalty programs. The first product demo is planned for first half of 2017 and, after the field-trial phase, will be available in areas where medical and recreational cannabis consumption has been legally approved. The Company intends to first roll this service out in California which just recently has become potentially the single biggest recreational cannabis market in the world.
"The unique combination of economic growth and restrictions of the cannabis industry will be a good validation point for our service. We could eventually look to offer the same technology on a global scale to the millions of the unbanked individuals like the undocumented and migrant workers as well as businesses in the emerging economies for bank-like services (without the costs associated with a traditional bank) like micro-financing, bill payments, online shopping payments, prepaid airtime purchase, and money transfer", added Tan Tran.
About Vemanti Group
Vemanti Group, Inc. (OTC PINK:VMNT) is a diversified holding corporation that's looking to be active in high-growth and technology-driven markets. The company plans to grow by adding value-added and fundamentally-sound businesses to their portfolio. For details on Vemanti Group, Inc. and its portfolio, visit http://www.vemanti.com.
This release contains forward-looking statements within the meaning of Section 27a of the Securities Act of 1933, as amended and section 21e of the Securities and Exchange Act of 1934, as amended. Those statements include the intent, belief or current expectations of the company and its management team. Forward-looking statements are projections of events, revenues, income, future economics, research, development, reformulation, product performance or management's plans and objectives for future operations. Some or all of the events or results anticipated by these forward-looking statements may not occur. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Accomplishing the strategy described herein is significantly dependent upon numerous factors, many that are not in management's control.
Vemanti Group, Inc.
SOURCE Vemanti Group, Inc