Kratom and CBD vendors face one big problem: most banking institutions
across the globe are still reluctant to cooperate with industries whose
products are federally illegal, even if it has been legalized in a few states
or some countries. As a result, opening a bank account or doing certain
transactions is difficult, which means that vendors are left without valid bank accounts or the ability to accept card transactions.
So, what can Kratom and CBD vendors do to ensure that their businesses
run without any hitch? Well, most of them are currently turning to
cryptocurrencies such as Bitcoin and Ethereum as alternative payment options.
In fact, most of the vendors vouch for crypto as the most convenient payment option—for a number of solid reasons:
It Eliminates Unnecessary Hassles Associated With Bank Transactions
As hinted above, because of the legality issues surrounding Kratom and CBD industry, banking institutions put a lot of restrictions to Kratom and CBD vendors when it comes to banking or card processing. Additionally, banks can freeze accounts associated with Kratom and CBD dealerships any time they deem necessary.
This can result in huge financial losses for the vendors. Most vendors are,
therefore, forced to resort to cash-only transactions, which are expensive,
dangerous, and complex. Even worse, a bigger percentage of
customers are willing to pay cash. In a nutshell, not only are cash-only
transactions expensive, but they are also unprofitable.
On the other hand, cryptocurrencies don’t go through banks, but through a
blockchain, which is a decentralized and unalterable ledger. Since a blockchain is not owned any bank that could be accused of money laundering, it can process Kratom and CBD transactions in cryptocurrency.
Remember that cryptocurrency is a digital currency, which means that that
the most common way to handle transactions is via mobile payment. Because digital sales are predicted to reach $1.9-4 trillion by 2020,
vendors who adopt cryptocurrency as a payment option will be in business.
Cryptocurrency payments also provide a broadened customer base as it allows Kratom and CBD merchants to serve customers that were never able to make purchases online in the past due to lack of bank accounts. With cryptos, all a customer needs is an email address and a Smartphone.
It Takes Away The Stress Of Location-Dependent Payments
Crypto payments can be made from any location across the world, making
business processes easier and faster. Kratom and CBD vendors also don’t
need to think about taxes when making payment for products from certain
regions. Put simply, crypto gives vendors an opportunity to bypass some taxes that are impossible to bypass when dealing with conventional money systems.
Additionally, compared to banks, crypto transactions are completed within
minutes. With a Smartphone and an active internet connection, a vendor can receive and make payments—anytime and anywhere. So, for any vendor who is looking to acquire international clients, crypto is the best bet.
Vendors have been making huge losses due to chargebacks. While it is not
impossible for a business to fight unnecessary chargebacks, it takes a lot of
time and effort. Cryptocurrency enables vendors to confidently say goodbye to chargeback frauds and identity theft.
This is because cryptos are based on blockchain, which is a decentralized,
distributed, digital ledger. Put simply, every transaction made is
permanent—can not be modified or deleted.
With crypto payments, therefore, chances of fraud are greatly reduced.
Vendors never face counterfeit attempts or identity theft issues. Moreover,
blockchain has never been hacked because changing one block requires changing all other blocks that it is connected to in the blockchain. This is enough proof that crypto payments are secure. Most importantly, vendors have complete control of their funds.
Another reason why crypto remains the most convenient mode of payment for Kratom and CBD vendors is the fact that blockchain is an online ledger that can always be transferred to all computers. This makes verification of any transaction easy and keeps every stakeholder honest and transparent.
Besides banking restrictions, transparency is one of the most cited factors
for bringing the Kratom, CBD, and crypto industries together. Many
Kratom and CBD consumers have expressed a lot of concerns over their credit card transactions being tracked—whether they used them to order Kratom and CBD products from physical dispensaries or online seed shops.
Many customers believe that such information could land in the wrong hands such as insurance companies, which are often used by border officials to deny entry to individuals who have broken certain laws by purchasing cannabis or Kratom products.
On the other hand, crypto transactions are anonymous, which means that they cannot be traced back to an individual—a critical factor that makes crypto payments more attractive in the Kratom and CBD industries.
Simplifies B2B transactions
The difficulties of managing cash-only transactions highlighted above can
sometimes extend to the entire supply chain. There are several transactions that vendors dealing directly with the green plants—growers, transporters, and retailers—have to do in cash.
These vendors also have to deal with licensing, lab testing, and tracking of
goods. This requires strict adherence to a wide range of complex state
regulations. In other words, the supply chain is more complex and expensive than it seems.
According to The Golden Monk, Crypto payment simplifies the whole process and makes B2B transactions sensible. Instead of buying fertilizers and growing equipment with armored trucks full of cash, Kratom and CBD growers simply pays with a click, all within the crypto market.
As you can see, crypto remains an affordable and convenient mode of payment for Kratom and CBD vendors. The ability to bypass financial institutions, anonymity, and lack of regulation offered by the cryptos solve a lot of hurdles being faced by vendors in the respective industries.
Besides, the distributed ledger can store important business data
securely and ensure regulatory compliance and strain quality, all while facilitating B2B payments. So, for Kratom and CBD vendors and other industry stakeholders, crypto is the way of the future.
Only time will tell whether Kratom and CBD businesses will fully embrace
crypto, wait to be allowed to transact freely via the traditional banking
systems, or opt for both crypto and conventional payment methods to offer more flexibility to their customers.