Buying CBD Products With Cryptocurrencies Now Possible Via OLB Groups' New Acquisition
A fintech merchant services provider The OLB Group, Inc. (NASDAQ:OLB) announced Thursday that it has signed a definitive agreement to acquire a portfolio of cannabidiol (CBD) merchants that will utilize the company’s SecurePay Payment Gateway to process payments. The acquired merchant portfolio has demonstrated a historical annual transaction run rate where it is anticipated to achieve an annual transaction volume of approximately $400 million in 2022.
The OLB Group anticipates, based on the historical performance of the group of merchants, an additional $20 million in annual revenue and $5 million in EBITDA for the company's payment processing business.
By providing the merchant portfolio with the proprietary and customizable “SecurePay” system, OLB will be able to address many of the payment concerns relating to the increase in activity in the CBD sector.
SecurePay provides an integrated support platform for traditional card-based payments, major digital wallets including Apple’s (NASDAQ:AAPL) Apple Pay and Alphabet’s (NASDAQ:GOOGL) Google Pay, PayPal (NASDAQ:PYPL), and cryptocurrency wallets. The cloud-based platform also includes integrations with multiple back-office systems including QuickBooks and other business software applications.
"OLB has always been an innovative Fintech company; we seek to capitalize on emerging trends to position ourselves for future success. In recent months, to align with our forward-thinking track record, we have launched a bitcoin mining enterprise, integrated electronic crypto payments systems into our OMNI Commerce platforms, and, most recently, completed the acquisition of a portfolio of CBD companies," Ronny Yakov, CEO of The OLB Group told Benzinga.
"We believe OLB is uniquely positioned to serve as a bridge between these high-performing sectors. Our company is one of the first vertically integrated companies to offer a payment platform that allows individuals to use cryptocurrency to purchase CBD products. By developing this inter-industry synergy, we are simultaneously constructing new markets for CBD product providers and cryptocurrency users," Yakov continued.
According to a recent market analysis by Grandview Research, the CBD market was valued at around $2.8B in 2020 and is projected to increase at an annual rate of 21.2% through 2028.
The OLB Group’s shares traded 3.12% higher at $3.97 per share at the time of writing Thursday morning.
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