The online pharmacy industry is a very lucrative sector. Online pharmacies are a practical alternative for patients who cannot physically go to a pharmacy. They are also popular because of lower prices, home delivery service, and the ease of repeat prescriptions.

However, there are also some concerns when buying medications online. Patients are not present during the purchase, the temperature during shipping cannot be controlled, and there may be problems if the delivery does not arrive on time. Additionally, many fraudulent sellers are on the market. For these reasons, many banks and payment service providers (PSPs) consider online pharmacies a high-risk business, making it difficult to obtain a merchant account.

Pharmacies that want to accept debit and credit card payments need a special type of bank account, known as a merchant account. The revenue is held for 2 to 7 days before being transferred to the merchant’s actual bank account. A merchant account is created under an agreement between a provider and an acquiring bank. The acceptance process includes a credit risk assessment.

For regularly recurring payments, a SEPA direct debit mandate is suitable. It requires a one-time authorization from the cardholder. The recurring bills are automatically debited until the mandate is revoked by the customer. This is particularly suitable for patients with long-term medication. Customers can commission pharmacies to regularly deliver their prescription medications.

If the invoice is issued electronically rather than on paper, it facilitates the monitoring of transaction documents, including invoices, orders, direct debits, credits, payment terms, and transfer receipts. Besides reducing paper and storing invoices, electronic invoices also increase business efficiency.

After a customer requests an initial electronic receipt, the merchant can automatically send them a digital receipt for future purchases. Automatically sent receipts save companies time and money and make processes more efficient.

Unfilled prescriptions mean an obvious loss of revenue for the pharmaceutical industry, estimated at 15 to 20 billion USD per year in the US alone. Moreover, non-adherence can lead to increased hospital, nursing home, or doctor visits, resulting in a loss of productivity. Providing reminders is not only good for business but also helps improve self-management in healthcare. Pharmacies use various automated systems such as SMS, automatic calls, or emails to inform patients that the next prescription needs to be submitted.

The American high-risk payment gateway CartPay, which currently has over 35,000 customers in Europe, the USA, and Asia, focuses on pharmacies. It offers POS, MOTO, and virtual terminal solutions. The gateway can be used in multiple languages and currencies. CartPay offers a wide range of payment methods, including credit and debit cards, Bitcoin, mobile payment apps, and e-wallets. High-risk merchants receive weekly payouts.

Ingenico Healthcare e-ID, a division of the Ingenico Group, offers a payment solution tailored to the needs of pharmacies, called PayPharma. The system was designed to handle card transactions in the pharmacy and helps track medication deliveries, including staff identification. Other features include electronic signatures for medical application forms, secure processing of electronic prescriptions, updating e-health smart cards, EMV payment at the counter, and the ability to manage loyalty programs.

The cannabis industry is booming, and e-commerce is a key factor in its success. In recent years, numerous new companies have started selling cannabis products on the digital market.

Like online pharmacies, online cannabis retailers are subject to federal and state regulations in which they operate and deliver. For example, they must adhere to the minimum age for sale or legal requirements. Online retailers selling medical cannabis products should always consult a lawyer to ensure they operate within all legal guidelines and regulations.

The legal status of medical and recreational marijuana dispensaries has led Visa, MasterCard, Discover, and American Express to prohibit marijuana payment processing on their networks, denying merchants access to credit card processing for medical marijuana. This policy has forced most marijuana providers to limit their payment options or rely solely on cash transactions, increasing the risk of robbery at their “cash-only” locations.

Although cannabis remains classified as a Schedule-I drug by the government, the Rohrabacher-Farr amendment prohibits the prosecution of individuals who comply with state medical cannabis laws.

Medical use of cannabis by prescription is legal in 31 states, the District of Columbia, and the territories of Guam and Puerto Rico. Recreational use is legal in 9 states and the District of Columbia and decriminalized in an additional 13 states and the US Virgin Islands.

The Alaska-based merchant account provider Naturepay is dedicated to processing payments for marijuana dispensaries and CBD providers.

The company offers domestic merchant account and banking solutions for medical marijuana merchants. Additionally, it offers POS solutions, an online payment gateway, gift and loyalty programs, ATMs, and fraud management.

MMJ Card Processing, also known as 420 Credit Card Processing, offers domestic merchant accounts for marijuana dispensaries. Merchants can accept credit cards from Visa, MasterCard, Discover, and American Express and receive these funds in a US business bank account.

Los Angeles-based eMerchantBroker specializes in e-commerce solutions for the high-risk segment, including medical marijuana merchant accounts. EMB’s product offerings include credit card processing, ACH processing, an online payment gateway, merchant cash advance, and a chargeback management system to help merchants dispute and resolve chargeback claims. On-site, merchants can accept PIN debit and e-wallet payments. CBD payment processing is also offered, although currently only through an offshore bank.

Medical use of marijuana has been legal in Canada since 2001. The legalized commercial medical cannabis supply is growing, with even the largest pharmacy chain, Shoppers Drug Mart, taking steps to sell over-the-counter medical marijuana in Canada. In June 2018, a new law was passed by the House of Commons, making Canada the second country to legalize recreational cannabis use.

Regulations vary from province to province, but there are some national laws regarding packaging and advertising. Currently, there are hundreds of pharmacies in Canada, some fully licensed and some operating in a grey area. There are cannabis product payment processing solutions in Canada, but they do not cover the entire process.

Bloomkit offers point-of-sale and online solutions. The payment solution includes payments for cryptocurrencies. The gateway accepts credit cards through an integrated wallet. The company uses regional solutions to tailor its payment processing to local jurisdictions. An associated input module allows health insurance coverage where needed.

The Calgary-based payment gateway Merrco works exclusively with the cannabis industry. It operates fully with compliance checks that can be tailored to provincial or municipal regulations to protect the integrity of the highly regulated industry.

The company helps merchants sell cannabis directly to consumers through a shipping system in Canada. This system ensures that cannabis is only sold to Canadians who are legally allowed to purchase it, and that there is no access to illegal market activity. It also offers point-of-sale solutions with a wide range of payment technologies, including chip and pin, tap & pay, and Apple Pay.

Looking at transnational cannabis stocks and their development in connection with cannabis legalization, there is a historical correlation between the rise of cannabis stocks and the political handling of cannabis by respective governments. For example: when Canada exempted the use of THC-containing cannabis outside of medical use in 2018, Canadian cannabis stocks experienced a significant upward trend. Similarly, this can be observed in the USA. Analysts estimate the growth of the cannabis industry in the USA to over 75 billion USD by the end of 2029. The current estimated value of the cannabis industry in the USA is 20 billion USD. The same applies to estimates of the German cannabis market. As one of the largest cannabis companies, SynBiotic, which is also listed on the stock exchange, tends towards positive development opportunities. Should cannabis legalization come to Germany, it could trigger a real rally in German cannabis stocks, significantly benefiting investors.

In addition to THC-containing cannabis, alternative cannabis products are also trending. So-called CBD products, which contain the active ingredient cannabidiol, are not subject to the Narcotics Act and are used in various ways. According to experience reports, CBD is used for sleep problems, relaxation, or depression. Neither a cannabis prescription nor other hurdles are required to purchase CBD in Germany. Since 2016, the use of CBD has been allowed in Germany and other EU countries. The high demand for CBD in society suggests that the legalization of cannabis would generally be positively received and could also be profitable on the stock market.