Payment processing for cannabis operators has been an issue since the dawn of legalization. However, financial tech firm Square is seeking to make things a bit easier—at least in Canada.
Today, Square announced a partnership with Jane, a top online ordering platform in the cannabis industry, to provide payment solutions for the legal marijuana market in Canada. Dispensaries can add online ordering to their business plans, enabling customers to order and pay for pick-up or delivery. The move is intended to help brick-and-mortar businesses supplement income through e-commerce.
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Licensed cannabis retailers in Ontario will also have the chance to beta-test in-person payment processing through Square, with a broader roll-out expected in the coming months.
Roshan Jhunja, head of retail at Square, pointed to the company’s forward-thinking history in various industries when explaining the decision to enter the cannabis space.
“With cannabis representing such a huge emerging market in Canada, the US, and globally, we’re committed to being at the forefront of providing the tools and services necessary to help cannabis sellers succeed,” Jhunja said in an email.
Companies like Mastercard have shied away from servicing the growing cannabis market in the U.S. due to the plant’s Schedule I status. Square’s decision to embrace the industry is something Socrates Rosenfeld, CEO and co-founder at Jane, sees as a groundbreaking moment.
“We deeply respect Square and their team for being true pioneers,” Rosenfeld told GreenState. “Many tech giants talk about it but hesitate to be first. Square has shown the courage to lead, and we’re honored they chose Jane as their digital infrastructure partner to enter into cannabis.”
Cannabis is federally legal in Canada, but until federal marijuana legalization hits stateside, Square will be sticking to solely servicing their neighbors to the north. However, Jhunja did state the company would be open to working with American operators if regulations change.
As legislators in Washington debate SAFE Banking, the announcement from Square opens the door to future endeavors in the cannabis market.
“This partnership marks a significant milestone for the Jane team and a positive advancement for the cannabis industry as we strive to expand accessibility for all,” Rosenfeld added.
