Legally operating marijuana businesses across the U.S. continue to have a difficult time finding banks that will work with them. Although the U.S. Treasury has given banks permission to work with these businesses, most are hesitant. But one tech startup is trying to change that.
Tokken is a new mobile app that is helping to bridge the gap for these businesses and banks, according to CNBC. By using Tokken, legal marijuana businesses will be able to accept credit/debit cards for transactions. As of now, businesses accepting debit/credit cards do so as an “ATM” transaction.
Tokken is secure and performs identification checks that adhere to strict banking requirements. Former U.S. Marine Lamine Zarrad is the founder of Tokken.
Zarrad said, “The trend is irreversible. Cannabis is not going anywhere.”
This app does more than just accept a payment; it also verifies that the purchaser is old enough to make the purchase. Following the verification process, you can upload credit card information directly into the app. A simple custom code is given to the cashier and your purchase can be completed.
In a time when identity theft and online security are major issues, Tokken has those bases covered. The developer stores no information.
Once the transaction is complete, the business takes that the transactions and creates a “digital token” of monetary value. The “token” is then exchanged for its cash value to be deposited into a bank account. The app tracks transactions and performs logging actions similar to how bitcoin works – all while maintaining anonymity.
The purchases and funds are verified to ensure that the purchase is legally made. Tokken uses many of the same security protocols as the federal government uses.
Zarrad said, “If we can solve this issue with cannabis and use this model to apply to immigrants and refugees, we can solve this issue with cash-based jobs.”
In order to use Tokken to purchase your legal marijuana, the purchaser and retailer must be registered with the app.