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POSaBIT Systems Corp., a payments processor specializing in cannabis merchants, announced its third-quarter earnings along with plans for a point-of-sale device earmarked for cannabis retailing.
The company said transaction volume for the quarter totaled $157.9 million, up 11% from the same period a year ago. Revenues for the quarter totaled $13.6 million, up 32% from the third quarter of 2022, while gross profit totaled $3.2 million for the quarter, up 28% from a year ago. Its loss for the quarter totaled $7.5 million, compared to $1.2 million a year ago.
In prepared remarks released late Thursday, POSaBIT chief executive and cofounder Ryan Hamlin said the Bellavue, Wash.-based processor will launch a POS device geared for cannabis selling.
“The one constant in this industry is change. We are preparing to launch the first cannabis payments device capable of processing multiple payment methods. Our focus remains to provide our customers with a best-in-class payment solution, which includes multiple points of redundancy,” Hamlin said.
No further information about the device was provided. POSaBIT could not be reached for comment.
In its release, the company also noted that the company has reached 75% of the PIN-debit transaction volume it was processing before a “decline” in its acceptance rate that occurred Oct. 11 due to industrywide service disruptions. The decline, the company says, was not unique to POSaBIT and impacted the entire industry.
In addition, the company said it expects 100 new merchant locations to begin processing transactions “shortly” on its platform. The processor plans to continue signing new merchants to increase market share, it said. “While our primary focus was on supporting our existing merchant partners, it is gratifying to note that we continued to attract new business during this period, underscoring our position as the payments leader in the cannabis industry,” Hamlin said.
POSaBIT also noted a cost-reduction plan—initiated in October as part of a larger plan to increase operating efficiency and keep the company on the path to profitability—is expected to generate $4 million in annualized savings.
