The kratom industry continues to grow nationwide as more holistic and wellness specialists utilize the medicine as an alternative to prescription medication. Unfortunately, many kratom businesses struggle because traditional credit card merchants refuse to let them use their service.
Limitless Payment Solutions wants to help; we work with high risk merchants every day, connecting them with payment processors that offer stability and protection from unexpected shutdowns.
If you’re currently operating a kratom business or looking to start one, our quick guide illustrates the complexities of obtaining a payment processor and how to best find one.
What is Kratom?
Kratom, scientifically known as mitragyna speciosa, is an evergreen tree native to Southeast Asia. Historically, kratom has been used for its psychoactive properties to improve productivity, lower stress levels, and reduce pain.
Depending on preference, kratom is available in various forms, with the most popular being powdered. The dried leaves are crushed into a powder and mixed into food or drinks.
The other popular forms of kratom are capsules and tablets. Market sales reveal that capsules and tablets are the fastest-growing form of kratom on the market today.
In certain shops, there are even kratom gummies, a popular medium for younger people interested in taking kratom.
In late 2024, Indonesia, one of kratom’s largest exporters, announced plans to regulate the product, including limiting the number of companies allowed to export kratom to keep up standards. These new regulations may affect the supply coming into America.
While existing for centuries in other countries, kratom’s adoption in the United States is still in its infancy and dealing with complicated messaging from the FDA and other regulators.
The Market for Kratom
While not FDA-approved and dealing with other regulatory challenges, kratom usage continues to grow in the United States. Despite worries about medical safety, demand is being driven by consumers looking for natural alternatives to prescription medications, including opioids.
A significant movement assisting Kratom adoption is the rising demand for natural, alternative wellness products. Because of a lack of regulation, fluctuations in laws from state to state, and potential side effects, the market for kratom is not entirely stable.
As the shift toward self-care and holistic health practices continues to grow in the United States, and the availability of kratom through online sales becomes commonplace, the market should see a shift in growth.
One research firm believes that the “global kratom market size was valued at USD 1.87 billion in 2023 and is expected to grow at a CAGR of 17.2 percent from 2024 to 2030 to reach USD 5.69 billion.”
Even with all of the obstacles in kratom’s path, the natural product has caught on amongst holistic health practitioners as an alternative to prescription medications.
Why are Kratom Businesses Labeled High Risk?
Kratom businesses are considered high-risk by numerous payment processors fundamentally as a result of the lack of U.S. regulation and stability amongst lawmakers. At any time, lawmakers may choose to change direction and ban kratom from sales in the United States.
One of the most common reasons why kratom businesses are considered high-risk is because its legality varies from state to state and even country to country.
In the United States, while kratom is legal at the federal level, several states and municipalities have imposed bans or restrictions. Internationally, countries like Australia classify kratom as a Schedule 9 substance, rendering it illegal to use, own, or transport. In Israel, kratom is deemed a “dangerous drug” by the Department of Health, leading to a complete ban.
Because kratom laws are inconsistent, payment processors are hesitant to offer businesses their services. Compliance becomes complicated once different rules for different jurisdictions are involved.
Two other factors influencing payment processors are the lack of approval from the FDA and the negative public perception of kratom.
Additionally, payment processor’s reluctance comes from regulatory scrutiny and the possibility of increased chargebacks.
Without public and government support, kratom businesses face an uphill battle when it comes to securing payment processing. But the good news is that kratom businesses have the Limitless Payment Solutions team to help them secure payment processing and keep their businesses afloat.
Securing Payment Processing for Kratom Businesses
Despite the lack of support from mainstream payment processors, not all is lost if you are a kratom business. Limitless Payment Solutions is a high-risk credit merchant connecting businesses that have been turned down and ignored by traditional merchants with payment processors who care about your business’s success.
Limitless Payment Solutions offers:
- 24/7 U.S. Based Custom Service
- $0 Set-up Fees
- No Minimum Credit Score
- Fast Funding
- 99% Account Approval Rate
- Chargeback Protection Programs
We’ve worked with kratom businesses nationwide, helping them access payment processors. Our customized solutions work to make your business grow.
To learn more about our high risk merchant accounts and how Limitless Payment Solutions can support your kratom business, contact us today and take the first step toward seamless payment processing.