By Tom Angell | Forbes
Payments processor Square announced on Thursday that it is making its payment processing services available to more businesses that sell CBD products.
The lack of financial services has been a key problem for companies in the cannabis industry, including those that only deal with cannabidiol, a non-intoxicating component of the plant.
“We believe everyone should be able to participate and thrive in the economy,” Square said in a blog post. “Today, we’re thrilled to launch our CBD early-access program, which allows businesses in the U.S. to sell CBD products on Square quickly, easily, and securely.”
In May, Square launched a smaller invite-only pilot program to offer services to a small number of CBD sellers, which apparently went well and led to the new broader roll out.
“In a sign of the hemp and CBD industries’ accelerating growth, the payment processor Square announced this week that it would make its services available to more CBD businesses, an expansion of the invite-only trial program it rolled out earlier.
The announcement is certainly welcome news for hemp and CBD companies, who have struggled to develop partnerships with financial institutions despite the 2018 Farm Bill’s legalization of hemp and non-psychoactive derivatives like CBD.
As more financial institutions recognize the safe harbor provided by the Farm Bill, many expect they will also jump at the opportunity to support businesses in this market, which is expected to reach $16-22 billion by 2025.”
