The legal cannabis industry has grown significantly over the past few years, with more states legal both medicinal and recreational use. However, as the industry expands, so do the challenges faced by cannabis software companies.
One such company, Dutchie, an e-commerce platform for the cannabis industry, suffered an outage on April 20 - an unofficial cannabis holiday and one of the busiest days of the year for dispensaries. The outage left many customers unable to place orders, causing frustration and lost revenue for retailers.
Dutchie, which provides point-of-sale hardware for cannabis retailers across the United States, reported interruptions and outages on 4/20. The company apologized for the inconvenience and promised to work to prevent similar issues in the future.
Another cannabis software company, POSaBIT, recently announced that it had abandoned plans to acquire three cannabis compliance software firms. The company cited regulatory challenges and the high cost of compliance as reasons for the decision.
The challenges faced by cannabis software companies are not limited to technical issues and regulatory compliance. The industry also faces unique challenges related to payment processing and banking.
Many banks are hesitant to work with cannabis companies due to the federal illegality of the drug. This has led to a lack of access to traditional banking services for many companies in the industry.
In response, some cannabis software companies have turned to alternative payment processing methods, such as cryptocurrency and cashless payment systems. However, these solutions come with their own set of challenges and limitations.
Despite these challenges, the cannabis software industry continues to grow. In fact, the industry is expected to reach $2.6 billion by 2025, according to a report by Grand View Research.
One company leading the way in the cannabis software space is Treez. The company provides an enterprise commerce technology platform that streamlines retail and supply chain operations for cannabis businesses.
Treez recently announced a partnership with the state of Missouri to provide seed-to-sale tracking and compliance software for the state's medical cannabis program. The partnership is expected to help the state better regulate the industry and ensure compliance with state laws.
In New York, cannabis regulators recently selected BioTrack as the state's seed-to-sale software. The move is a significant step forward for the state's fledgling cannabis industry, as seed-to-sale tracking is a key regulatory requirement.
Other cannabis software companies to watch include Global Go, which provides consulting services for cannabis and hemp businesses, and POSaBIT, which offers payment processing solutions for cannabis retailers.
Despite the challenges faced by cannabis software companies, the industry continues to grow and evolve. As more states legal cannabis, there will be an increasing need for software solutions to help businesses operate efficiently and comply with regulations.
