- Net Element stock skyrocketed after the company announced the launch of a fully compliant payment solution for the legal cannabis industry
- Shares grew 63 percent, with volume eventually increasing to 9.5 million shares from previous full-day averages of 81,000 shares
- The payment solution enables entry into a lucrative field that’s forecast to grow beyond $22 billion by 2022
On October 22, global technology and value-added solutions group Net Element, Inc. (NASDAQ: NETE) announced the launch of a fully-compliant payment solution for the legal cannabis industry. The payment processing solution is designed to provide a smooth transaction between merchants and consumers as the popularity of cannabidiol-based products grows (http://nnw.fm/1CGYw).
Shortly after the company announced the launch of the payment solution through subsidiary Unified Payments, Net Element shares rocketed 63 percent, with volume growing to 9.5 million shares in comparison to the earlier average of 81,000 shares.
The new payment solution is complex, as it has to overcome several legal industry challenges. The legal cannabis market is dependent on state laws, because it hasn’t been allowed federally as of yet. Unified Payments had to overcome this issue through the creation of a single, unified and fully compliant product.
Previously, CBD products were mainly available in head shops. Today, they have spread to food and natural stores, beauty boutiques and even cafés. This increasing availability drives a high need for the provision of a reliable, unified payment solution.
Net Element President of Integrated Payments Vlad Sadovskiy said in a news release that the company is excited to create a legal cannabis payment acceptance solution that meets the needs of merchants across the market. Net Element works closely with numerous vendors to ensure that they’re getting access to state-of-the-art payment solutions.
The American cannabis industry is expected to grow significantly, and it will most likely reach $20 billion by the end of the year, while the hemp CBD market alone is likely to surge to $22 billion by 2022, according to cannabis and CBD research firm Brightfield Group (http://nnw.fm/Vq0uJ).
From 2017 to 2018, the CBD market in the U.S. nearly doubled in size, analysis suggests (http://nnw.fm/N3g5T). The five-year growth projection is now dramatically higher than what experts forecast just one year previously. The prospects of full legalization of CBD products are more favorable than ever before due to the recent Hemp Farming Act of 2018 proposal aimed at removing hemp from Schedule I controlled substances and making it an agricultural commodity.
Net Element is a global financial technology and value-added solutions provider. The company supports electronic payments in an omni-channel environment. It operates a payment-as-a-service transactional model for small and medium-sized companies across the U.S. and emerging markets. The aim of the company is to utilize the model for the purpose of delivering flexible payment solutions to markets with diverse regulatory, demographic and financial transaction conditions. Net Element was ranked as one of the fastest growing North American companies on Deloitte’s 2017 Technology Fast 500.
For more information, visit the company’s website at www.NetElement.com
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