Square’s first market for cannabis payments is Canada, but that’s unlikely to be where things end — the payments company is laying the foundation for the legalization of marijuana in the U.S. market if the regulatory picture becomes more clear.
Square has partnered with Jane, an ordering platform service for cannabis dispensaries, to support weed dispensaries in Canada. Square has not accepted weed payments in the past, and its move in Canada comes as the U.S. Senate is scheduled to resume deliberations this week on a bill that could fully legalize the substance in the states.
Canada’s cannabis regulations aren’t necessarily simple, but since marijuana is legal nationally in Canada — in contrast to the U.S., where it is legal only on a state-by-state basis — the regulatory landscape is much clearer. That clarity gives Square a market to build a cannabis payment business that can be transported to the U.S., rather than navigating the much more complex U.S. weed market as its first move.
