National Cannabis Risk Prevention Services (NCRPS) has reached an agreement with MG Payment to acquire its eWallet, mobile banking and point of sale (POS) cannabis payment processing platform, according to a press release Monday (Aug. 1).
This will let NCRPS offer a banking product that can serve the needs of banks in states where cannabis is legal. Because cannabis is illegal on the federal level, industry businesses have to resort to state-regulated banks for finances.
The wider industry has been limited because of a lack of a compliant payment processing solutions, which NCRPS said it will address through the purchase of the MG Payment Products, allowing banking partners to offer the solutions.
Per the release, this will allow banks and credit unions to accurately identify and cut out risk while also enjoying revenue from a compliant eWallet, mobile banking and POS transactional system.
“We are honored and excited to bring this total banking and finance risk management solution to the US cannabis industry as a big step in overcoming one of the market’s biggest risks,” said Rocco Petrilli, president and CEO of NCRPS. “The addition of this capability completes the NCRPS full menu of risk solution processes that will work in unison to drive true cannabis market sustainability through precise risk scoring and follow-up education and execution.”
Cannabis legislation has seen some developments lately in the U.S. As PYMNTS noted last week, a new law that seeks to protect banks doing business with cannabis companies could be moving forward.
See also: Cannabis Bill Backer Sees New Hope For Passage
Rep. Ed Perlmutter (D-Colo.) has been a champion for the SAFE Banking Act for years. He said the introduction of the Cannabis Administration and Opportunity Act (CAOA) in the Senate gets rid of a hurdle to passing the legislation.
While the CAOA doesn’t have the votes to pass, it could see more debates.
“I think there’s a real opportunity to pass not as sweeping a piece of legislation as [Senate Majority Leader Chuck] Schumer has introduced, but something that really will benefit the industry and make things safer,” he said.
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