By Square Exits Hemp Market
Square has informed hemp and CBD retailers that their accounts will close on November 5, 2026. This decision forces businesses to find new point-of-sale and payment partners immediately. Retailers are currently navigating major federal regulatory changes while facing this urgent operational challenge.
The exit highlights a structural risk for companies relying on general-purpose technology providers. These firms were not originally built for regulated retail environments. They can choose to step back from a category when the regulatory picture shifts.
For hemp and CBD retailers, this risk is now immediate. The situation mirrors a familiar pattern seen in the broader cannabis market. Regulated categories require providers willing to stay and adapt as rules change.
Square’s exit is not necessarily a sign that other processors will follow. However, it underscores the need for partners that can navigate evolving federal and state rules.
Industry Response to Payment Gap
Cova Software, a cannabis retail technology platform, states it remains committed to compliant hemp, CBD, and cannabis retailers. The company positions itself as an alternative as other providers step away from the sector. Cova is purpose-built for regulated retail environments.
It has operated in cannabis retail for years, a market defined by shifting state-by-state rules, mandatory government traceability systems, and ongoing payment processing challenges.
“Regulated retailers shouldn’t have to wonder whether their technology provider will still support their industry every time the law changes,” said Gary Cohen, CEO of Cova Software. He noted that cannabis taught the company early on that regulations will evolve. Markets will change, and retailers will constantly have to adapt.
Cohen added, “For hemp and CBD retailers facing a transition today, we’re ready to help.” He emphasized that if a market evolves toward licensed cannabis retail, customers won’t have to start over.
Migration Challenges and Support
Losing a point-of-sale system on short notice creates significant operational hurdles. The system holds transaction history, product catalogs, inventory data, and loyalty programs. Retailers must migrate this critical business data while still serving customers daily.
Cova’s implementation team is designed to handle this transition directly. They help retailers migrate data, configure systems, and train staff.
The company’s support staff are in-house and based in North America. They have specific experience in cannabis and regulated retail. A representative stated, “When regulations change or a retailer needs help keeping their business moving, that’s when Cova’s support team steps up.” The average response time is under 30 seconds.
Cova helps businesses navigate evolving federal and state rules, stay operational, and adapt with confidence.
