Berlin, 2021-08-19: A recent survey conducted by the German Cannabis Business Association (BvCW) revealed that 91% of respondents in the German cannabis sector have experienced or are currently experiencing restrictions and conditions imposed by banks and financial service providers. Particularly notable was the payment provider PayPal, mentioned by 89% of affected respondents. More than half reported account closures (59.49%), often permanant in the case of Paypal, and frozen dunds (55.69%). Some respondents also pointed out critically that a large company in the industry appears to be exempt from PayPal’s restrictions.

In addition to PayPal, the most frequent issues were reported with Klarna, Amazon Pay, Visa, Mastercard, Stripe, Deutsche Bank, N26, and Commerzbank.

“These disproportionate disadvantages can pose a serious existential threat to affected companies and business owners. We are actively working against this,” said BvCW Managing Director Jürgen Neumeyer. Companies most frequently associated with difficulties are now being contacted by the BvCW, while positive examples will also be published to help businesses identify better alternatives.

According to survey participants, the best experiences were reported with Klarna, Sofortüberweisung, Postbank, VivaWallet, GiroPay, Commerzbank, and Penta Bank.

“Both Klarna and Commerzbank were frequently mentioned under negative and positive experiences. It’s clear we need to have further dialogue with them,” said Benjamin Patock, BvCW board member and head of the Department for Technology, Trade & Services. “Our goal is to eliminate arbitrary and unnecessary market disadvantages and ensure fair and transparent conditions for the cannabis economy.”

While isolated incidents had been reported previously, this survey provides the first broader insight into the extent of the cannabis industry’s difficulties with financial services. The BvCW is working to bring these discriminatory practices to an end. Should no voluntary resolution be reached with providers, legislative action will be considered.

This was the first major industry-wide survey of its kind — further surveys will follow. A summary of the key results is attached and may be freely used with proper attribution.

Survey Summary (in German): Click here
Position Paper of the Department for Technology, Trade & Services: Click here

Selected Key Findings: