A business-to-business cannabis platform has entered the New Mexico market, giving local establishments the ability to make payments electronically.
LeafLink, founded in 2016, offers a system for businesses to sell to each other, primarily providing manufacturers and growers a way to connect with retailers for the wholesale of cannabis products such as flowers, concentrates and edibles.
“We were really excited about the prospect of market size,” Claire Moloney, LeafLink’s vice president of business operations, told the Journal. “We know a lot of sales (in New Mexico) are driven by tourism from surrounding states that don’t have programs, so we’re excited about the potential for growth.”
Moloney said the company already has three licensed producers and manufacturers — Everest Cannabis Co., Mountaintop Extracts and Vitality Extracts — on the site that dispensaries can buy from.
She said about 100 dispensaries have signed up since the launch. And the company expects even more dispensaries, growers and manufacturers as the industry progresses.
The company uses automated clearinghouse payments on the platform for businesses that collect payments, Moloney said, which helps reduce the risk involved in processing cash and credit card payments.
“We’ve seen people move money, which is obviously quite a dangerous activity,” she said. “And that’s when… the idea (came) to launch LeafLink.”
The company, based in New York and with offices in Los Angeles and Austin, first launched its platform in Colorado. It has since expanded to 25 other markets, Moloney said, including Washington DC and Puerto Rico.
LeafLink processed about $5 billion in orders last year, the company said. And Moloney said the company has processed an average of $4.7 billion in orders per year since its launch in 2016.
“We know that New Mexico will be an adult market of over $400 million over the next five years,” Moloney said.