Cannabis Industry

What is the CBD industry?

The CBD industry growth and potential make it attractive to many investors and previously anonymous venture capitalists are now willing to be open. Before delving into this growing industry, here are the basics:

What is CBD?

CBD is one of more than 100 cannabinoids found and CBD oil can be extracted from the cannabis and hemp plants. Below are the essential 4 legal components regarding the industry:

Recreational Marijuana

Legal in 11 U.S. states, recreational marijuana refers to cannabis used to intentionally experience its intoxicating and mind-altering effects.

CBD Oil

CBD oil is a non-intoxicating nutritional supplement made from hemp that is used to promote wellness. It is legal under U.S. Federal Law. Individual states may enact their own laws around hemp-derived CBD.

Medical Marijuana

Medical marijuana refers to the use of cannabis as a physician-recommended therapy for treating certain health conditions and symptoms. It is legal in 33 U.S. states

Hemp

Hemp is a versatile industrial crop with more than 25,000 product applications. Over 40 states have established commercial or pilot hemp cultivation programs made legal under the Farm Bill.

CBD Industry Growth:

As an evidental progression in investments in this industry, here are the stats and facts:

- 11 U.S. states have legalized recreational marijuana
- 16 states and the U.S. Virgin Islands have decriminalized it
- Hemp Farming Act of 2018 (Farm Bill) classified all cannabis or cannabis-derived compounds as hemp
- Industrial hemp recently removed from the Controlled Substances Act (CSA) opening a way for cultivation and harvest
- Investments from $3.5 billion in 2017 to nearly $13.8 billion in 2018 (Viridian Capital Advisors cited by Fortune)
- Projected harvest of $16 billion in revenue by 2025
- Therapeutics segment projected $9.30 billion in 2026 and calculate a compound annual growth rate (CAGR) of 27.4%

Significant challenges of the CBD Industry

Every opportunity comes with difficulties. Even with the substantial market growth, projected investments, and demand for CBD, many investors are still hesitant with these risk factors:

- Complicated Cannabis banking services due to shifting regulatory landscape
- Elevated prices of business insurance despite industrial hemp and marijuana legalized
- Hemp vs Marijuana: CBD oil comes from cannabis and hemp plants and differs in the levels of Tetrahydrocannabinol (THC). Cannabis contains more than 0.3% THC making it federally illegal in other states while Industrial hemp contains little to none THC and offers health benefits.
- High fees from payment processors
- High-Risk label limits sellers from accepting payments online for the high possibility of chargebacks
- Limited choices for a CBD merchant account and Payment processing
- Negative stigma associated with the Cannabis industry and other Marijuana related ventures
- Strict federal regulatory compliance from the Food and Drug Administration (FDA) and Federal Trade Commission (FTC)

As CBD businesses adapt and many more are well informed, each of these challenges will likely be cleared up and more concrete regulations appear.

CBD business needs High-Risk Merchant Solutions

There are virtually non-existent banking services for the Cannabis industry due to the risk factors. So, a CBD business needs High-Risk Merchant Solutions. Here are some of the benefits when you partner with a reliable high-risk payment processor:

- Create jobs in the cannabis industry
- Expansion on international or global market
- Fewer limitations to offer recurring payments
- Higher volume processing
- High Chargeback Protection
- Increased Profits
- Increased Tax Revenues
- More Flexible credit acceptance payment online options
- Wider selling of varied products and services
- More opportunities to invest in the Best Hemp Stocks pushing for more marijuana legalization policies

Partner with MUT

Be secured as we become your CBD high-risk merchant processor and assist on your high-risk payment gateway. Tell us more about your Cannabis business plan and let My Umbrella Tree help you with our secure payment processing solutions are fast and honest, while upholding superior customer service and uprightness at a fair price.

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At My Umbrella Tree, we are a leading provider of payment processing services, enabling our clients to accept a full suite of payment forms, including: credit cards, debit cards, checks, and gift and loyalty programs.