Cannabis and Currency – Tips on how to process payments with cannabis and how to do it like the pros

Cannabis has moved from the street corners to the pharmacies as a lot has changed about the devil’s salad that we love. Another thing that has changed is payment processing for cannabis, which is the topic of this article.

It’s been quite a long journey for cannabis. The struggle to legalize cannabis has been long and hard, from the world’s greatest enemy of the American drug war to something with real clinical application, and even if countries warm up to cannabis, the hard work is yet to come.

Now that cannabis is legal for medicinal and recreational purposes in some places, pharmacies are popping up everywhere.

With ecommerce central to selling anything, it’s only natural to assume that ecommerce pharmacies would pop up everywhere – and they did. This gave new life to cannabis banking and cannabis payment processing, which we will explore in this article.

The cannabis industry

The cannabis industry has grown rapidly since its inception. The legal distribution of cannabis for recreational or medicinal purposes is a complex matter on its own, but processing payments is a completely different matter.

It is estimated that the total value of the global cannabis industry will soar to a staggering $ 43 billion by 2025. This is an important industry in and of itself. Since it’s just getting started, many current business frameworks and infrastructures have to adapt to cannabis, and with that come the laws and regulations that regulate cannabis itself.

Cannabis and Cash | Why not use a card?

Well, if you wanted to buy cannabis with a card that would solve most of your problems, wouldn’t it? Unfortunately, it is impossible on the merchant side to accept traditional payment methods such as credit and debit cards as payment for cannabis products.

The struggle to legalize cannabis is long, hard and arduous. Due to the semi-legal status of cannabis around the world, payment processing services such as AMEX, Discover, VISA, and MasterCard are not allowed to process such payments.

When you consider that the four are the most popular payment services out there, especially VISA and Mastercard, which share most of the market, that’s a big problem.

Why not use a card? You can’t – it’s illegal. If using the most popular payment processing services is out of the question, what do you do? Well, you are turning to cannabis payment processing platforms.

Cannabis traders are struggling to find the right platform for their payment processing, but that is getting easier as the industry grows. Cannabis growers face the same problem – so before the cannabis issue is fully resolved around the world, or at least in a large country like the United States, workarounds must be in place.

What workarounds are there?

Given the expensive prospect of cannabis, there will certainly be cannabis payment service providers out there that will make selling cannabis a breeze. Most of them operate from specific locations where cannabis is legal, and some larger companies use an umbrella model that serves a different branch in different locations.

Cannabis credit and debit cards must be processed through a “middleman” in order for them to function properly. These types of cannabis dealer solutions are pretty hard to come by, mainly because the laws surrounding cannabis are so prone to change.

With the good fight raging on, the cannabis issue will likely be resolved in the future and no specialist cannabis banking providers will be needed. However, if we know the law and how long the cannabis issue has been debated, it could be years or even decades before we see results.

As a retailer, you must use a cannabis banking solution that will help you process payments when selling cannabis and cannabis products.

The future of payment processing with cannabis

You can accept cash or bank transfers all the time, but these don’t really work if you want to offer instant service and payments, especially if you run a digital pharmacy.

Cryptocurrencies faced a similar problem before they solved it with stable coins, and the cannabis industry uses a similar workaround. In layman’s terms, it pegs something to the value of a FIAT currency and then exchanges it for cannabis, which means that the procurement and sale of cannabis was never really done with real money.

Finally

Convenience, scalability, reliability, and security are top concerns of cannabis dealers. With cannabis payment platform providers, all of these can be satisfied in a variety of ways that make selling and buying cannabis a breeze.

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