Feb 2017 Financial News

BOJ gets 13 applications for electronic currency products, but only one for remittances

Feb 15, 2017

Deputy Governor of the Bank of Jamaica (BOJ) Livingstone Morrison says that some 13 applications have been made to the central bank to provide electronic retail payment services (ERPS), with four being approved for digital wallets.

An electronic retail payment instrument is any tangible or intangible instrument enabling individuals to make payments for goods and services or to transfer money. A digital wallet, commonly known as mobile money, is one such device.

The four approved mobile wallet providers are GraceKennedy Money Services, Alliance Financial Services Limited, NCB Quisk, and JCUES which has been rebranded CONEC by developers at the Jamaica Cooperative Credit Union League.

The central banker said that Quisk has been approved for use only by NCB, and that other providers who want to use the platform will have to apply to the BOJ. All companies approved have completed successful pilots.

The BOJ has also approved one Proof of Concept for Victoria Mutual Building Society which is developing a digital wallet service.

In addition, the central bank has supplied no-objection approval to three other entities which have developed their product for in-house use and not for the wider public.

Deputy Governor Morrison said another four applications have been turned down.

He noted that the central bank, which is in favour of innovation, has set guidelines for risk management and customer safety which relate not only to systems, but also to proper governance and administration.

Within the four mobile wallets approved, GK has been given the green light for sending and receiving remittances.

On Monday, group CEO for GK, Don Wehby, told the

Jamaica Observer, “Customers in Jamaica who are getting remittances via Western Union from anywhere in the world can now collect those remittances on their mobile phones using GK MPay.

“They will then be able to use that remittance money to pay bills, pay for goods and services, purchase phone credit, and even send money to any other mobile user in Jamaica. They can even decide to go to any Western Union location which is a registered GK MPay agent location and take some of that remittance money off their phone in physical cash.”

Wehby added: “This is a game changer as it gives our Western Union customers even greater options. They will be able to collect and use their remittance in the way which best suits them; and for the GK MPay service, this will position us as the mobile money platform with the most options and usability.”

The group CEO said that with GraceKennedy Money Services (GKMS) currently in 10 other Caribbean markets, the company intends to take the service across the region once they are satisfied that regulation and customers are aligned.

According to Deputy Governor Morrison, GK already has a licence for remittances, and what has been approved is the disbursement of remittance proceeds by cash, bank account or mobile wallet.

“Instead of waiting at the agent for cash, it can be loaded onto the wallet. Similarly, if a mobile wallet client would like to send money via GK, then money can move from the wallet to GK and on to the recipient,” he explained.

There are no other applications for remittances via wallet before the BOJ, the deputy governor outlined, noting that such products may very well be now at the design stage and yet to be presented to the central bank.

“We welcome innovation in the space. We do pride ourselves on that,” stated Deputy Governor Morrison.

He said the business of the central bank was to protect the consumer by looking at the proper implementation of Know your Customer (KYC) and Anti Money Laundering (AML) protocols.

 

Source:
BY AVIA COLLINDER
collindera@jamaicaobserver.com
Business reporter
Jamaica Observer
Wednesday February 15, 2017    

http://www.jamaicaobserver.com/business/BOJ-gets-13-applications-for-electronic-currency-products--but-only-one-for-remittances_89593