Green Check Verified (GCV), a leading fintech provider of compliant cannabis solutions and services to financial institutions, announced deal terms, to acquire PayQwick, which has been servicing underbanked cannabis businesses with payments and lending since 2015. The deal was unanimously approved by both boards.
"With PayQwick on board, GCV will be the first company to serve the vertically integrated cannabis industry from businesses to banks, and the only company to ensure that any cannabis business has an opportunity to be properly banked," per a press release.
Green Check Verified addresses the lack of financial services from banks and credit unions, while PayQwick focuses more directly on serving the demand for cannabis businesses. Now, the combined entity will serve over 3,000 cannabis operators and over 120 banks and credit unions in 38 states before the fall election referendums.
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Together, they will be processing and certifying more than that $4 billion annually, representing over 15% of the US cannabis industry.
“From the beginnings of our conversations with PayQwick, we quickly realized how much our companies had in common, and how we could unite to help innovate the cannabis banking industry,” said Kevin Hart, CEO of Green Check Verified. “In the past, we have approached the challenge of cannabis banking from two separate directions, but now by converging, our shared passion and commitment to building enterprise-class solutions will be made evident.”
The announcement of the pending deal, expected to close in Q4 2022, was made at the PBC Conference by Joshua Radbod, where he introduced Hart and PayQwick's CEO Bob Craig. They shared the news live onstage to more than 500 attendees.
“The combination of our teams and the application of our complementary technologies provide a comprehensive ecosystem for banks, credit unions, cannabis, and ancillary businesses," Craig added. "Our infrastructure will facilitate more than just compliant deposits and payments, as it will permit real-time transactions that include lending, supply chain settlements, and banking solutions not previously available to the cannabis financial community.”
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“Cannabis has become one of the fastest growing industries in financial services, as many states continue to legalize both the sale and use for medical or adult use purposes," said Hart. "Many more states have pending legislation that upgrades their cannabis laws. Financial institutions want a piece of the pie and are becoming increasingly interested in learning more about the potential implications of banking Cannabis Related Businesses (CRBs)," Hart told Benzinga exclusively.
"Due to their rapid growth, CRBs are in need of a full suite of products from preferred financial institutions. This includes wires, bill pay, consumer payment services, ACH originations, and lending. Smaller credit unions are now adding cash management services in an effort to compete with established cannabis businesses (...) These smaller financial institutions can partner with experienced cannabis services like Green Check Verified and PayQwick to develop their programs.
"Through this new relationship, GCV and Payqwick will combine to become the first company to serve this vertically integrated cannabis industry from businesses to banks, and a unique tool to help cannabis businesses with compliant solutions that ensure they are properly banked,” Hart concluded.
Photo: Courtesy Of Green Check Verified
