Square's top lawyer explains what's behind the company's push into the trendy CBD space
The company is opening up its platform to CBD sellers after it conducted a three-month, "invite-only" beta program for a small group of CBD startups starting in May,"We're just really excited to be able to offer this solution to a historically underserved industry that's faced so many challenges and interruptions to their businesses," Square's general counsel, Sivan Whiteley, said at a press event at the cleverly-named Manhattan CBD shop Come Back Daily.
Square is pushing into an industry in which there are not many ways for young companies to safely process payments, said Whiteley. Elavon, US Bank's payment-processing subsidiary, pulled out of the CBD industry in May over what the company said was the lack of clarity around CBD's legality in the US,Hemp-derived CBD — containing less than 0.3% THC, the chemical responsible for the "high" associated with marijuana — was legalized in December of last year through the Farm Bill.
Once Square put together a program on its due diligence process, Whiteley had to "shop it around" to its payment partners — credit card companies — to make sure that "everyone was on board.""That was an interesting experience because we saw how much demand there was outside of the beta for credit card processing," Whiteley said.
These payment processors charge upwards of 10% fees per transaction and often hold the funds for weeks, CBD sellers previously told Business Insider, whereas most non-cannabis related e-commerce businesses are charged in the 3% range and the funds are dispersed immediately.Square has started working with a select group of CBD startups while other payments rivals shy away from the trendy substance
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
American Eagle Just Launched a Line of CBD Skin-Care Products Because Why Not?From face oil to body lotion, everything is under $20.
Consulte Mais informação »
Texas A&M bans vaping on 'every square inch' of all its campusesThe Texas A&M University System includes 11 universities and more than 153,000 total students sprawled across the Lone Star State.
Consulte Mais informação »
Next-Gen AirPods Teased in New iOS Beta, Leaked ImageApple appears to be close to introducing the next version of its AirPods wireless headphones: The latest beta version of iOS already includes an illustration featuring the long-rumored third-genera…
Consulte Mais informação »
Revealed: The 2019 Arena Power ListMadison Square Garden leads the 20 highest-grossing venues in their class.
Consulte Mais informação »
Timothée Chalamet Reveals His Bagel OrderHere's what he's getting on those dates with Lily at Tompkins Square.
Consulte Mais informação »