Electronic payments company Hypur, which targets the cannabis and hemp industries, has unveiled its online electronic payment solution for transactions within the hemp and CBD community.
In a press release issued Thursday (April 18), Hypur said its payments technology enables business, retail and online transactions for merchants in the hemp and CBD markets in the U.S. According to Hypur, organizations within the hemp industry struggle to access electronic payments processing solutions just as legal marijuana companies do, because hemp is also on the prohibited list at major financial institutions.
The company's payment solution ensures secure and compliant transactions without relying on offshore processors, it said. Consumers can use the Hypur tool to make payments in-store or online, while businesses can also use the solution to make payments to their B2B suppliers.
"Hypur's electronic payment solutions for hemp and CBD companies fill the void left by failed payment solutions for the hemp industry," Christopher E. Galvin, CEO of Hypur, said in a statement.
As marijuana legalization spreads in the U.S., its CBD market is also experiencing significant growth. Research from Cowen & Co. released earlier this year found the CBD market could see product usage grow 10 percent by 2025, valuing the sector at about $16 billion. CBD, or cannabidoil, is derived from hemp and, through legislation passed late last year, was made legal, but only in certain circumstances.
The industry faces similar financial challenges to the broader marijuana market, namely the struggle for sellers in this space to obtain secure banking, payments and other financial services.
Canada, which recently legalized marijuana for recreational use nationwide, has its own set of payments and financial services challenges. Bank of Montreal remained the only one of the Big Five financial institutions in the country to operate within the legal cannabis market despite legalization, which analysts said highlighted the challenge of the payments sector to keep pace with social change.