Vice Industry Payments

The speakers discuss opportunities in payment processing and point-of-sale systems for vice industries (like marijuana), highlighting Dutchie as a successful example that reached a $3B valuation by serving an underserved market that larger companies avoid.

Key Points:

• Market Opportunity:

  • Traditional payment processors and banks block or avoid vice industries
  • Large companies won't serve these markets due to risk/reputation
  • Creates opportunity for specialized providers to capture significant market share

• Example: Dutchie (Marijuana Industry)

  • Built point-of-sale system for dispensaries
  • Similar model to Square but focused on cannabis industry
  • Achieved in 5 years:
    • $3 billion valuation
    • 30-40% market share
    • Started 2017

• Why It Works:

  • Underserved market with real business needs
  • Limited competition from established players
  • Companies serving these niches can grow quickly
  • High adoption rates due to lack of alternatives

• Target Industries:

  • Marijuana/Cannabis
  • Adult content
  • Other regulated/restricted industries blocked by traditional payment processors