Growth & Jobs | JN Pay Wallet to provide greater payment options for Jamaican consumers

Ricardo Dystant, chief of digital transformation and special projects at JN Bank, is encouraging more Jamaicans to embrace the Bank of Jamaica’s (BOJ) JAM-DEX, pointing out that the digital dollar is the future of spending.

The BOJ recently announced JN Bank as a wallet provider to distribute JAM-DEX. This makes JN Bank the second deposit-taking institution to receive digital currency to the value of $1 million worth of JAM-DEX from the central bank.

JN Bank has been finalising its digital wallet application, which is at an advanced stage, for provision to the public. The distribution of JAM-DEX through the JN Pay Wallet to make and receive payments is scheduled to commence this year.

“This is where the world is going and we are pleased that JN Bank and Jamaica are a part of the progress. Across the globe, digital payments are already preferred to cash by many businesses. Central bank digital currencies (CBDCs) promise a myriad of advantages not only for the Jamaican economy, but also for the average consumer,” Dystant said.

He added that CBDCs are a less volatile, more affordable and better-regulated option for those without a bank account. “While that has potential benefits worldwide for those without access to financial services, it can also boost financial inclusion among Jamaicans.”

A report from the National Financial Inclusion Strategy notes that about 22 per cent of Jamaicans do not have a bank account, while those who do are not active users of the system, with 23 per cent not making lodgements or withdrawals during a 12-month period.

Dystant informed that the JN Pay Wallet will provide JN Bank members with a quick, easy and safe mobile platform to transact business using digital currency powered by the BOJ. Users will be able to cash in/out, transfer funds, and pay bills using their wallet. They can also seamlessly convert funds between traditional deposit accounts and their digital currency wallet.

“We will aim to provide financial benefits and inclusion for those who are classified as banked or unbanked with simplified KYC requirements,” he stated. “One of the best things about the JN Pay Wallet is that customers will only need their Tax Registration Number and a national ID to enrol, making it easier than a traditional bank account. Plus, there is no charge for JAM-DEX transactions.”

He said members will also have 24-hour access points via JN Bank’s network of branches and ATMs to top up their CBDC wallets to transact business.

Dystant said JN Pay Wallet will offer interoperability with other systems, meaning JN customers will be able to transfer and receive JAM-DEX funds from any BOJ-approved wallet provider.

“This is a game changer for Jamaicans, becauseJAM-DEX could provide access for thousands of persons who are considered unbanked, and could facilitate some form of equity in the society. The man in the Cockpit Country or in any remote area can easily and seamlessly do his banking and pay for goods at the touch of a button on his cellular phone,” he added.

“It brings the service right to his fingertips, and he is able to send a text to make a bill payment or pay for a service or product with ease and convenience. Even in his own community, instead of walking with cash down to the corner shop, he can order a bun and cheese and simply transfer the money to the shopkeeper’s digital wallet.”

Dystant further noted that the increased use of CBDCs could also potentially result in savings for the average person. “Cash is expensive. Every time the BOJ must print cash, it must spend significant amounts and after that cash is printed, it must be moved to the bank, and then from there to other sectors of the economy. All this comes at a cost,” he explained.

He said this cost is not only borne by the BOJ, other financial institutions, and business entities, but a portion is also transferred to the consumer by way of pricing. He noted that a partially digital economy would eliminate some of these costs, resulting in major savings, which would in turn be passed on to the average Jamaican.

He pointed out that digital currencies will not replace cash, but instead, add to the ecosystem by complementing the existing methods of payment.