LITTLE ROCK, Ark. (KTHV) - There are still so many questions about how the medical marijuana business will look in Arkansas. One of them is how businesses will handle all the cash. A new company, MediPays, hopes to take cash out of the system.
"You’ve seen operators in other states be kidnapped and held for ransom because the criminal element believes these operators have a large bag of cash buried in their back yard and in some cases maybe they do," said Dan Roda, Chief Legal Officer of MediPays.
Since marijuana is illegal federally, most banks won’t touch it. MediPays wants to provide a unique payment option.
"The idea would be to take the cash out of the system entirely, we call it a closed loop system," said Roda.
MediPays is a mobile wallet that allows businesses and customers to handle payments electronically instead of using cash, using their partnership with an unidentified bank.
It was created by four Little Rock businessmen who hope their cashless system will change the way money is handled in the marijuana business altogether.
They believe the platform will also save businesses money since they wouldn't have to invest as much into security, cash vaults, and transportation.