Singlepoint Inc (OTCMKTS:SING) Has A Window Of Opportunity On Cashless Cannabis

Cannabis is about to explode as a recreational industry, yet there are a number of hurdles (with legality now out of the way) that still pose potential problems to retailers. The number one is the finance side of their operations. With banks governed at Federal level, and marijuana still illegal at said level, there are strict restrictions relating to how a cannabis retailer can handle and store cash, and pay taxes. Pretty much every medical marijuana retailer, despite the long term legality of the product, stores cash on site in safes and the likes, and pays taxes in cash. Buyers – therefore – are required to pay in cash, as the retailer isn’t legally able to have buyers' funds transfer to a bank account due to the fact that these funds are being used to purchase marijuana.A number of companies are working to resolve this issue, and one that has caught our attention is Singlepoint Inc (OTCMKTS:SING).The company, through its SingleSeed Payments subsidiary, is working to offer a cashless payments processing system that cannabis retailers can use to help them eliminate at least one element of the current prohibitive restrictions surrounding financial transactions (the consumer to retailer transfer).The system in question is what's called a Cashless ATM Terminal. For all intents and purposes, it's a credit card swipe machine, which SingleSeed provides to retailers. The retailer sets it up at point of sale, and customers can swipe their standard bank cards for purchases. There's a $2 surcharge associated with purchase (this is paid by the customer, and on all honesty, we think it's probably something that the company is going to have to revisit if it's going to take these things mainstream) and the merchant pays cash change, with the transaction rounded up electronically to the nearest $5.Now, it sounds pretty convoluted – rounding up, card transaction but cash change, surcharge etc. – but in an industry where there are no other options, something like this has potential.Singlepoint seems to think so, and by way of a somewhat amusingly put together PR title, jst reported the following:"SinglePoint Subsidiary Awakens from Quiet Period to Capitalize on Increased Accessibility to $6+ Billion Cannabis Industry Cash Transactions"The subsidiary in question is the above mentioned Singleseed, and the $6 billion is a 2018 projection based on current medical dispensary cash take, expanded to account for potential recreational sales.Now, there's a bit of a catch, and it's rooted in long term viability.Singleseed's solution is a solid one, and serves a current unmet need, but there's a time limit on just how ling this need will remain unmet at Federal level. With the legalization wave well under way, and fresh states set to vote pretty much coast to coast across the coming twelve months, it can only be a matter of time before Federal level lawmakers implement changes to the current restrictions to accommodate recreational marijuana retail banking.Once these rules change, Singleseed's technology will become redundant. That is, in its current form. This is probably going to take a number of years, however, and this lag opens up a window of opportunity to establish a presence in the space. Once the presence is established, Singleseed can adapt to incorporate whatever changes in Federal law take place. Of course, there's a chance the company won't be able to adapt, and will struggle. That's the longer term risk. Nearer term, say for the next twenty-four months, Singleseed could be one of the only funnels through which electronic payments can run from buyer to seller in recreational marijuana, and that's an opportunity for expansion.The company is going to have to move fast, and it's basically starting from a zero cash position, so any expansion costs are going to be footed by shareholders by way of value lost through dilutive capital raises. If the company can meet its potential, however, these costs should be well worth shouldering.We will be updating our subscribers as soon as we know more. For the latest updates on SING, sign up below!Disclosure: We have no position in SING and have not been compensated for this article.