Out of all of the booming industries in the U.S. today, it’s impossible to ignore the cannabis industry. Once an industry that was non-existent and illegal, the world of cannabis has completely transformed into something magnificent today. No matter the specifics related to the subject of marijuana, it’s challenging to ignore how far it has come since its early history. Plus, practically every expert and person involved in the field know that still has a long way to go.
As great as it is to see the cannabis industry succeed as it has, it has faced numerous obstacles along the way. Since it’s not entirely legal throughout the country and only recreationally legal in a handful of states, access to banks has been exceedingly difficult since it’s federally regulated. Since marijuana is a state by state issue and illegal on a federal level, this has been an ongoing issue since the first instance of legality in Colorado. However, in recent times, this issue has been partially avoided due to credit unions and regional banks stepping in to fill the void.
Nonetheless, with the growing field of cannabis and financial void being filled, cannabis is on its way to becoming a B2B payments innovation influencer. Although this topic appears to be a bit specific and confusing, it’s not. Let’s take a look at what this means and highlight what a B2B payment is, contactless payments, a CBD payment processor, and much more.
What’s a B2B Payment?
Before we look at the specifics of how cannabis is becoming a B2B payments innovation influencer, let’s go over what a B2b payment if beforehand. Since it’s pointless to discuss the specifics without highlighting the definition, let’s first examine this definition.
Nonetheless, a B2B payment or business to business payment is a situation in which one business makes a transaction with another. Rather than a business selling a specific product with a consumer, the transaction happens between businesses. The understanding of a B2B payment typically happens when a business is outsourcing its materials or product for another business to use. For example, a tree company might have a B2B deal with a paper company for the trees to make paper. Although this is a simple explanation, it explains how this operation is simplified in the marijuana industry. Whether the specifics of a B2B payment in the cannabis industry involve the growing of marijuana and its deal with a dispensary, or CBD and its packaging for another company, there are many scenarios to highlight in this example.
Outside of the countless examples tied to the B2B simplicity of the marijuana industry, the fact that it’s a new industry makes it amazingly simple for this area. Unlike previous business areas that have to adapt and adequately transform into modern practices, the world of marijuana is relatively new. The substance has indeed been around for quite some time, but the industry was non-existent up until the 21st century. Even with the early days of the 21st century, all industries have drastically changed. This is primarily due to the overwhelming complexities tied to the age of technology.
No matter the circumstance, since marijuana is a new industry, it’s adapted the idea of a B2B payment very quickly and easily. Since there aren’t any pre-determined areas for the field to hurdle, it wasn’t too big of a deal. Thus, why this field is being looked at as a B2B payments innovation influencer, highlighting how one business shouldn’t just succeed, but if one succeeds, every other facet can succeed with it. Since they all rely on each other for all of their products, this is an excellent area for this field.
One of the leading examples as to why the cannabis industry is as remarkable as it is for this field has to mostly due to contactless payments. Previously, if businesses wanted to do business with each other, they had to meet in person. As we all know, dreadfully having to meet in person is never a bright point in any field. With the addition of contactless payments, it’s a lot more straightforward to complete plans. People can talk online and see each other throughout the various webcam services, making it virtually the same as meeting in person.
Either way, this is a bright point in the industry. Whether it’s a dispensary making a deal with an edibles company to use their products, or a CBD payment processor example, they’re all fantastic examples of the field.
Increasing Legacy Infrastructure
Since the hurdle of seeking bank support in the industry isn’t as big of a deal today, the legacy infrastructure is significantly better for businesses. More specifically, small businesses can accept digital payments from customers using various payment processing services.
Like any other industry, having more options to accept payments will undoubtedly lead to growth. On the other hand, not having enough options will undoubtedly lead to a harmful component on the matter. Either way, the increasing legacy infrastructure in the field is a big part of why the B2B aspect of the field is growing how it is. Since businesses can help each other properly flourish, it makes sense why this field is doing well in the manner.
More Businesses Are Interested
Since cannabis is such a large industry, more businesses are becoming heavily interested in the field. Whether it’s an entrepreneur looking for their next investment or a marijuana company looking to expand, any positive growth in an industry will promote interest. As more businesses show their interest, more businesses will be likely to enact a B2B payment. Any field in this particular realm has seen what happens when positivity in a specific industry is reached; it helps everyone involved.
Thus, when more businesses and people are interested, it creates an effect for everyone involved in it that’ll see it. As a result, businesses will be more likely to business with one another, and consumers will see the benefits back—just another example of how cannabis is becoming a B2B payments innovation influencer.