Now officially part of the CBD support group, Square has launched its CBD early-access program, which allows U.S. businesses to sell CBD products on Square “quickly, easily and securely,” according to the company’s post.
Though considerations for accepting CBD payments can be considerable from a compliance perspective, it’s a market that’s predicted to exceed $20 billion in the U.S. by 2024 at a compound annual growth rate of 49%. This being the case, one can see why so many payment companies (Shopify included) are jumping on board to support this demographic.
Regarding the heavy compliance burden that seems to be associated with this market, LegitScript Communications Specialist David Khalaf explained it in these terms: “To be compliant, a merchant must ship a compliant product from a compliant jurisdiction to a compliant jurisdiction,” Khalaf said. “That’s a lot of compliance.” The company offers a certification program for CBD manufacturers and sellers looking to demonstrate compliance.
From Square’s perspective, the company posted the following qualification for CBD seller prospects: “CBD products must be hemp-derived and have less than 0.3% THC.”
And from the perspective of their customers, they appreciate the accessibility of a program that is both user-friendly and cost effective in an industry that had previously been quite constrained. “In the early stages of the emerging hemp industry, Bluebird Botanicals was constrained to using merchant processors that charged exorbitant rates. As an eCommerce company, we were at one point only able to receive payments by check,” said Kevin Liebrock, chief operating officer of Bluebird Botanicals.