Last updated on April 5th, 2023
The world of cannabis is looking to get more technical, thanks to a new payment and credit card network designed especially for the industry. SuperNet, set to launch in January, will offer cannabis dispensaries the chance to accept credit card payments – something currently illegal under federal law.
SuperNet Seeks to Bring Credit Cards to Cannabis Industry
Cannabis is a booming business in the United States. Despite the impressive growth of medicinal marijuana, CBD, and other hemp-derived products, however, credit card networks and the banking industry are unwilling and unable to provide services to cannabis operations due to the federal classification of cannabis as a Title IV drug,
A new payment company is introducing a solution to the conundrum of cannabis, credit cards, and the current need for consumers to carry cash. SuperNet is a new fintech and credit card network that serves the cannabis industry by partnering with financial institutions and cannabis merchants.
How SuperNet Works
The SuperNet network is similar to Visa, Mastercard, or other payment networks, with the sole exception being that it exists to serve the cannabis industry. Instead of holding large quantities of cash, dispensaries and other cannabis industry companies can use the SuperNet platform to finance purchases anywhere it is accepted.
“It’s a real credit card they’ll get from us,” CEO Michael W.K. Tsang told TechCrunch in an interview. “It’s just like any other credit card in your wallet, except instead of a Visa or Mastercard logo, it’s a SuperNet logo. You can spend it anywhere SuperNet is accepted.”
“Regulators want to see fewer cash deposits, and they want to see electronic payments,” Tsang said. “The beauty of what we’re offering is that our money — the electronic money — is tracked from the point of purchase. It’s traceable. We know where the money comes from. In cannabis, with cash, you have to spend a lot more effort to trace where the cash came from.”
Expected Launch Date
The SuperNet cannabis payment network will begin issuing credit cards in California in January 2022. The company will issue credit cards, and process payments that work with dispensaries, and SuperNet expects roughly 100 California retail locations to accept payments through the network at press time.
Related Article: Payment Processor Square Blazes Trail in CBD Market