Switzerland, known for its impressive mountainous landscape, its precision watches and banking hubs (Zurich and Geneva), has also established a unique presence in the world of CBD (cannabidiol). According to Statista, revenue in the Cannabis market is projected to reach US$448.90m in 2023 at an annual growth rate (CAGR 2023-2028) of 15.06%, resulting in a market volume of US$905.20m by 2028.
In 2022, an online trading platform for cannabis products was launched in Europe. Its aim is to promote “seed-to-shelf” quality and transparency for buyers and sellers of cannabis products through a certificate which is provided by an independent laboratory in Switzerland. The CBX Stock Exchange (CBX) is based in Geneva, Switzerland, and was founded by a former banker and Cannabidiol (CBD) manufacturer.
The Swiss CBD market stands out for its quality, innovation, and solid regulatory approach. In this blog, we will explore the distinct features of the Swiss CBD market and the added value that comes from collaborating with payment processors specialized in this specific business.
Rigorous quality and safety standards
Switzerland is synonymous with quality and precision, attributes that extend to its CBD industry. Swiss CBD producers adhere to strict quality control standards, ensuring that their products are of the highest caliber. From cultivation to extraction, Swiss CBD companies take great care to produce premium, pharmaceutical-grade CBD products that meet rigorous quality and safety standards. This commitment to quality has earned Swiss CBD a reputation for excellence in a crowded market.
Before we dive deeper into what makes Switzerland unique, we must mention some of the Swiss CBD pioneers that contributed to this thriving market:
- Swiss FX: Swiss FX offers a range of CBD products, including oils, capsules, and creams. Their products are made from Swiss-grown hemp and are known for their quality and purity.
- Cibdol: Cibdol is a well-known Swiss CBD brand that prides itself on producing high-quality CBD oils, capsules, and skincare products. They emphasize organic and natural production processes and rigorous quality control.
- CBD420: CBD420 is a Swiss brand that produces a unique product: “The Original Weed” strain, which contains less than 1% THC. This product has gained popularity for its novelty and compliance with Swiss regulations.
- KannaSwiss: KannaSwiss is a prominent CBD producer in Switzerland, offering a variety of CBD products, including oils, teas, and cosmetics. They focus on quality, sustainability, and innovation in their products.
- Naturecan: Naturecan is a UK-based brand that sources its CBD from Switzerland. They offer a broad range of CBD products, emphasizing quality, transparency, and third-party lab testing.
- Cannical: Cannical is a Swiss CBD producer with a reputation for organic and sustainable farming practices. They offer a wide range of CBD products, from oils to cosmetics.
- Hemplix: Hemplix is a Swiss company specializing in full-spectrum CBD products. They prioritize transparency and quality control, offering a variety of CBD oils and other products.
- Greeners: Greeners is a Swiss CBD brand that focuses on producing high-quality CBD products, including oils and cosmetics. They aim to provide natural and effective solutions for their customers.
- Kannaswiss: Kannaswiss is known for its broad range of CBD products, including oils, capsules, and skincare items. They prioritize quality and sustainability in their production processes.
- Lush Earth: Lush Earth is another Swiss CBD brand that produces a variety of CBD products, from oils to skincare items. They emphasize the organic and natural origin of their ingredients.
One of the key drivers for these pioneers’ success stories has been the Swiss regulatory landscape. The Swiss government has drafted a clear and supportive regulatory framework for the CBD industry. Hemp cultivation and the sale of CBD products with up to 1% THC content are legal, making Switzerland an attractive destination for CBD entrepreneurs. This regulatory clarity reduces uncertainty for businesses and creates a solid foundation for growth. Having said this, readers should be aware that buying, selling, production, possession, and consumption of CBD with more than 1% of THC is illegal and that one must be 18+ years old to buy any CBD product just like regular alcohol and tobacco. Driving under the influence of CBD is not allowed.
Innovation in Research and Development
Switzerland’s tradition of scientific excellence extends to CBD R&D. Swiss scientists and researchers are at the forefront of studying the potential benefits and applications of CBD. As a result, Swiss CBD companies are constantly innovating and developing new products. Swiss-made products have a great reputation and are synonymous with quality and reliability. The Swiss flag on a CBD product is seen as a stamp of excellence in markets worldwide. This international reputation has positioned Swiss CBD as a sought-after import product in both Europe and other regions.
Diverse Product Offerings
Swiss CBD businesses offer a wide array of CBD products, ranging from oils and tinctures to edibles, topicals, and cosmetics. The diversity of product offerings caters to a broad range of consumer preferences and needs, making Swiss CBD accessible to a wide customer base. The Swiss CBD market is highly competitive, which drives innovation, product quality, and keeps pricing reasonable for consumers.
The Added Value of Specialized Payment Processors
While the Swiss CBD market offers unique advantages, it also presents specific challenges, especially concerning payment processing. This is where the added value of partnering with a high-risk PSP kicks in. For businesses operating in this market, partnering with specialized payment processors is not just a preference but a strategic necessity.
Knowledge of Complex Regulations
Specialized payment processors have in-depth knowledge of the Swiss CBD market’s regulatory complexities. They understand the legal requirements, such as age verification and transaction monitoring, ensuring that businesses stay compliant.
CBD is considered a high-risk industry by many traditional payment processors. Specialized payment processors are equipped to handle the associated risks, including fraud prevention, chargeback management, and compliance with strict anti-money laundering (AML) and know your customer (CDD/KYC) requirements.
Global Payment Methods
Specialized payment processors are familiar with the payment preferences of Swiss CBD customers. They offer a variety of payment options, including credit card processing, e-wallets, bank transfers and local payment methods, ensuring a seamless and convenient experience for consumers. Look for a processor that accepts PayPal, a method that is particularly popular for cross-border payments. In Switzerland, the PayPal app was downloaded more than 300,000 times in 2022 alone, according to Statista.
These processors are equipped with the technology and infrastructure needed to facilitate seamless and secure transactions, both domestically and internationally. This is crucial for Swiss CBD businesses looking to expand their customer base and cater to global markets.
Enhanced Customer Trust
Partnering with a specialized payment processor adds a layer of professionalism and trust to a Swiss CBD business. Customers are more likely to trust businesses that use reputable, secure payment processors, enhancing their confidence in the brand.
The Swiss CBD market is a unique and exciting space, driven by quality, innovation, and clear regulations. To navigate this market successfully, businesses must recognize the importance of partnering with specialized payment processors. These processors offer the expertise, infrastructure, and risk management solutions necessary to ensure the smooth operation of CBD businesses while guaranteeing the reputation for quality and reliability that the Swiss CBD industry is known for. This collaboration allows businesses to focus on what they do best: producing top-notch CBD products that cater to the evolving needs of consumers in Switzerland and beyond.