Square Enters the CBD Market
Square Inc., a mobile payment solution company, expands its services to doing business with companies selling CBD products.
Thus, it has become one of the first payment platforms in the US that allow CBD providers to sell their products.
As the cannabidiol industry is blooming, it seems like the right time for Square Inc. to enter the CBD space. Last year the cannabis market was worth $11.9 billion, data from Grand View Research suggests. Estimations are that it will reach $ 66.3 billion by the end of 2025 at a CAGR of 23.9% from 2018 to 2025.
Even though the sale of hemp-derived products, which includes CBD, was legalized across the country under the Farm Bill in 2018, many banks and other financial institutions seemed reluctant to do business with companies selling CBD-products.
Earlier in May, Square launched an invite-only pilot program offering its services to a small number of companies selling CBD-products. “We saw this as an opportunity to make our tools available to sellers in the industry,” said Square in a statement.
“We believe everyone should be able to participate and thrive in the economy,” the company added. “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.”
This announcement comes on the heels of the House of Representatives approving a bill last week that is designed to protect banks doing business with CBD sellers operating in states where marijuana is legalized.