MyECheck (OTC Pink: MYEC), a provider of mobile payment processing by means of electronic checks, has a new software licensing agreement with Itonis, Inc. (PINKSHEETS:ITNS) to handle point of purchase transactions via mobile apps for medical marijuana sales.
This does not mean that dispensaries throughout the country will suddenly all be able to accept checks.
The problem is this: Echecks requires that you need banks that are OK with high volumes of small deposits throughout the day. This of couse could suggest cannabis sales. And the few dispensaries and retailers who do have bank accounts may not want to run the risk of sending in a high daily volume of small transactions.
Itonis CEO Michael Cheung said he will to be able to offer the service by late May when MyECheck finishes doing its application for the service. Still, a vast majority of dispensaries and recreational retail outlets will not be able to use the system before current banking regulations become pallatively benign.
Both Itonis and MyECheck are obviously minor participants in the $5 trillion payment processing space. But in the long-term cannabis retail and MMJ dispensaries will be very appealing for marijuana payment processors, despite the fact that processors take a per transaction fee in addition to other fees.