Payments leader and payment facilitator Shopify announced on Tuesday that it is allowing U.S. merchants who are selling hemp or hemp-derived cannabidiol (CBD) products onto its platform, calling it “a new era of retail for one of the fastest-growing emerging industries in North America.”
A non-psychoactive compound derived from cannabis, CBD is being marketed in products from skin care to infused sparkling water to dog treats. In its announcement, Shopify quoted research from BDS Analytics predicting that the market will grow from $1.9 billion in 2018 to $20 billion by 2024.
Processing for merchants selling CBD products is an area where payments companies have stepped carefully, however, thanks to regulatory uncertainty brought on in part by differences in state laws. Shopify said it was welcoming retailers selling CBD in the states that allow it, if they are complying with federal, state and local laws surrounding the product. The company has been allowing CBD sales on its platform in Canada since 2018, it said.
Merchants selling CBD products will have access to all of Shopify’s apps, payment processing and shipping services. The company said that it is already powering shops for brands Josie Marie and Cannuka, which are selling CBD products to U.S. customers.
“Shopify has unmatched expertise in emerging industries, along with the resources merchants need to be successful in the fast-growing market of hemp-derived CBD products in the U.S.,” Harley Finkelstein, Chief Operating Officer, Shopify, said in a press release.
“Shopify’s reliable technology and extensive partner network means that businesses can ride the wave of demand for these products and give consumers more choice.”