The concept for Paloma Pay started in 2019 with the drafting of AB 953- a bill that would allow the state of California to accept stablecoins from cannabis businesses for tax remittance. Ally Medina was the Executive Director of the Blockchain Advocacy Coalition, and identified the burden of both business and the state in handling large volumes of cash. Due to its federal status, cannabis is an $18 billion industry conducted largely in cash.
While working with industry leaders and regulators, she identified the potential of cryptocurrency to reduce the security risk associated with cannabis business and increase efficiency. While the bill was tabled during early days of the covid-19 crisis, Ally Medina partnered with cannabis entrepreneur Nasser Azimi and crypto expert Ryan Luther to create a crypto payments solution that would allow for contactless delivery.
An estimated 70% of cannabis businesses are cash run. In addition to lacking access to depository accounts, these businesses are not served by credit card for other traditional payment processors. This results in a hodgepodge of cash, legally gray, costly or inconvenient payment methods.
Paloma Pay solves these problems with a straightforward payments platform that allows retailers to accept cryptocurrency. Customers are able to pay with whichever crypto wallet they currently have, no need to download another app. Funds are then sent to the merchant’s wallet and exchanged for cash on their behalf by our friendly CASHBOT.
This offers business owners a contactless payment solution where customers can actually prepay for orders, a first in the industry. In addition, cryptocurrency orders have a larger average transaction size.
If the business owner has a bank account, they can transfer their dollars there. For those that do not we will be partnering with vetted and trustworthy decentralized finance companies who can offer the services cannabis companies are unable to access in mainstream banking.