Green Vs. Federal Red: Payment For Pot Options Dwindle After Mastercard's Transaction Ban
Portfolio Pulse from Joana Scopel
Mastercard Inc (MA) has banned dispensaries from conducting debit card transactions for cannabis-related purchases, citing federal laws that consider such sales illegal. This move has forced cannabis enterprises to revert to traditional cash transactions or Automated Clearing House (ACH) transfers. Twilio Inc (TWLO), a communications service provider, has also banned cannabis entities from using its software for promotional activities, reflecting the broader reluctance of established players to engage with the cannabis sector due to legal complexities.
August 25, 2023 | 8:02 pm
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NEUTRAL IMPACT
Mastercard's ban on cannabis-related transactions may limit its transaction volume in the short term, but it also reduces the risk of potential regulatory actions or investigations.
While the ban may reduce Mastercard's transaction volume from the cannabis industry, it also mitigates the risk of potential regulatory actions or investigations due to non-compliance with federal laws. This could be seen as a prudent move by investors.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Twilio's ban on cannabis entities using its software for promotional activities may limit its customer base in the short term, but it also reduces the risk of potential regulatory actions or investigations.
While the ban may reduce Twilio's customer base from the cannabis industry, it also mitigates the risk of potential regulatory actions or investigations due to non-compliance with federal laws. This could be seen as a prudent move by investors.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70