Kratom and Cannabis vendors face one big problem: most banking institutions worldwide are still reluctant to cooperate with industries whose products are federally illegal, albeit it has been legalized in a few states or some countries. Opening a checking account or doing certain transactions is difficult, which suggests that vendors are left without valid bank accounts or can accept card transactions.
So, what can Kratom and Cannabis vendors do to make sure that their businesses run with none hitch? Most of them are currently turning to cryptocurrencies as alternative payment options.
Most of the vendors vouch for crypto because the most convenient payment option—for several solid reasons:
It Eliminates Unnecessary Hassles related to Bank Transactions
As hinted above, due to the legality issues surrounding the Kratom and Cannabis industry, banking institutions put many restrictions on Kratom and Cannabis vendors when it involves banking or card processing. Additionally, banks can freeze accounts related to Kratom and Cannabis dealerships any time they deem necessary.
This can end in substantial financial losses for the vendors. Therefore, most vendors are forced to resort to cash-only transactions, which are expensive, dangerous, and complicated. Even worse, a more significant percentage of consumers are willing to pay. In a nutshell, not only are cash-only transactions expensive, but they are also unprofitable.
On the opposite hand, cryptocurrencies do not undergo banks, but through a blockchain, which may be a decentralized and unalterable ledger. Since a blockchain is not owned by any bank that would be accused of cash laundering, it can process Kratom and Cannabis transactions in cryptocurrency.
Remember that cryptocurrency may be a digital currency, which suggests that that the foremost common thanks to handling transactions are via mobile payment. Because digital sales are predicted to succeed in $1.9-4 trillion by 2020, vendors who adopt cryptocurrency as a payment option are going to be in business.
Cryptocurrency payments also provide a broadened customer base because it allows Kratom and Cannabis merchants to serve customers that were never ready to make purchases online within the overdue to a scarcity of bank accounts. With cryptos, all a customer needs is an email address and a Smartphone.
It Takes Away the strain Of Location-Dependent Payments
Crypto payments are often made up of any location across the planet, making business processes more accessible and faster. Kratom and Cannabis vendors also do not get to believe taxes when making payment for products from specific regions. Crypto allows vendors to bypass some taxes impossible to bypass when handling conventional money systems.
Additionally, compared to banks, crypto transactions are completed within minutes. With a Smartphone and a lively internet connection, a vendor can receive and make payments—anytime and anywhere. So, for any vendor looking to accumulate international clients, crypto is the best bet.
Secure
Vendors are making huge losses thanks to chargebacks. While it is not impossible for a business to fight unnecessary chargebacks, it takes tons of time and energy. Cryptocurrency enables vendors to mention goodbye to chargeback frauds and fraud confidently.
This is because cryptos are supported blockchain, which may be a decentralized, distributed, digital ledger. Put, every transaction made is permanent—can not be modified or deleted.
With crypto payments, therefore, chances of fraud are significantly reduced.
Vendors never face counterfeit attempts or fraud issues. Moreover, blockchain has never been hacked because changing one block requires changing all other blocks connected to the blockchain. This is often enough proof that crypto payments are secure. Most significantly, vendors have complete control of their funds.
Transparency
Another reason why crypto remains the foremost convenient mode of payment for Kratom and Cannabis vendors is that blockchain is a web LEDGER which will always be transferred to all or any computers. This makes verification of any transaction easy and keeps every stakeholder honest and transparent.
Privacy Concerns
Besides banking restrictions, transparency is among the foremost cited factors for bringing the Kratom, Cannabis, and crypto industries together. Many Kratom and Cannabis consumers have expressed many concerns over their MasterCard transactions being tracked—whether they used them to order Green Horn Kratom and Cannabis products from physical dispensaries or online seed shops.
Many customers believe that such information could land within the wrong hands, like insurance companies, which are often employed by border officials to deny entry to individuals who have broken specific laws by purchasing cannabis or Kratom products.
On the opposite hand, crypto transactions are anonymous, which suggests that they cannot be traced to a private. This critical factor makes crypto payments more attractive within the Kratom and Cannabis industries.
Simplifies B2B transactions
The difficulties of managing cash-only transactions highlighted above can sometimes reach the whole supply chain. There are several transactions that vendors dealing directly with the green plants—growers, transporters, and retailers—have to try to do in cash.
These vendors even have to affect licensing, lab testing, and tracking of products. This needs strict adherence to a good range of complex state regulations. In other words, the availability chain is more complex and expensive than it seems.
Crypto payment simplifies the entire process and makes B2B transactions sensible. Rather than buying fertilizers and growing equipment with armored trucks filled with cash, Sumatra Kratom consumers pay with a click, all within the crypto market.
Conclusion
As we will see, crypto remains a reasonable and convenient mode of payment for Kratom and Cannabis vendors. The power to bypass financial institutions, anonymity, and lack of regulation offered by the cryptos solves many hurdles faced by vendors within the respective industries.
Besides, the distributed ledger can store essential business data securely and ensure regulatory compliance and strain quality, all while facilitating B2B payments. So, for Kratom and Cannabis vendors and other industry stakeholders, crypto is that the way of the longer term.
Only time will tell whether Kratom and Cannabis businesses will fully embrace crypto, wait to be allowed to transact freely via the typical banking systems, or choose both crypto and traditional payment methods to supply more flexibility.
