Growth & Jobs | Regional remittance flows expected to increase

Managing director of LASCO Financial Services (LFSL), Jacinth Hall Tracey, has welcomed reports from a recent World Bank Migration and Development Brief that remittance flows continue to grow in the Caribbean. She says the company’s partnership with Visa to bring the LASCO Prepaid Visa card to the market is already seeing a huge take-up for remittance uses.

Hall Tracey says remittances are an essential source of financing to many Jamaicans, who use it to supplement household income for necessities such as food, utilities and education.

“The card is expected to revolutionise the local financial sector. It was a repositioning that connected and enabled individuals to easily acquire the convenience of a debit card. The LASCO GOLD Visa Prepaid Card is more than just a card, it is a life-changing experience! For remittance customers on the receiving end or sending end, it is safer, convenient and more affordable to transfer and receive funds within minutes and at any time of the day or night. It really simplifies the process of money transfer and their lives,” Hall Tracey said.

Visa is a trusted world leader in digital payment technology.

Remittances account for about 22 per cent of gross domestic product (GDP) in Jamaica, with the Bank of Jamaica reporting that remittances in Jamaica decreased to USD$3440.20M in 2022, from USD$3497.10M in 2021, but things are looking up for 2023.

“Initially, the card was targeted to the underbanked and unbanked, but we have found that we are also getting many customers who hold accounts in the traditional banking system. In fact, due to the ease of applying for this particular card, we find that a lot of people are utilising it for remittances and online purchases. We have noticed that many customers have been choosing to use this card for all their digital payments, particularly for subscriptions to online services,” she added.

The card is now available in over 70 of LFSL’s agent locations islandwide, where customers can register and receive a card immediately with a valid ID and TRN. Cardholders can receive remittances direct to their LASCO GOLD Visa Card when their sender uses a Visa Direct partner, or Jamaicans locally can sign up for LASCO Money Skip Di Line service for LFSL to load their funds to their card, once they send a notification with the required information.

VITAL LIFELINE

Additionally, customers no longer have to carry around excess amounts of cash or stand in line when they have a LASCO GOLD Visa Card. They have the options to top up their cards with cash in agent locations, or online, using bank transfer to LFSL, which then loads the card with funds. It can be used at all point-of-sale terminals where Visa is accepted, or online, giving customers even more access to electronic financial services such as, online shopping, bill payments, monthly subscription payments, and more.

The World Bank reports that remittances to low- and middle-income countries (LMICs), such as those in the Caribbean, grew an estimated 3.8 per cent in 2023, “a moderation from the high gains of the previous two years”. It states further that, in 2023, remittance flows to LMICs are estimated to have reached US$669 billion “as resilient labour markets in advanced economies and Gulf Cooperation Council (GCC) countries continue supporting migrants’ ability to send money home”.

It said remittance flows to Latin America and the Caribbean are expected to increase by eight per cent, to reach US$156 billion in 2023.

“The strong labour market in the United States positively impacted remittance flows”, the document states, adding that the average cost of sending US$200 to the region was 6.1 per cent in the second quarter of 2023.

Global director of the Social Protection and Jobs Global Practice at the World Bank, Iffath Sharif, said “during crises, migrants have weathered risks and shown resilience to support families back home.

“But high inflation and subdued global growth is affecting how much money they can send. Labour markets and social protection policies in host countries should be inclusive of migrants, whose remittances serve as a vital lifeline for developing countries,” he added.

Remittances contribute to ending poverty and hunger; promoting good health, quality education, clean water and sanitation, decent work and economic growth; and reducing inequalities. Strategic partnerships and progress on remittances go hand-in-hand.