Cashless society — underpinned by technology

(Jamaica Observer) UNRELIABLE technologies and a lack of confidence in the banking sector have been cited as the reasons Jamaicans are opting out of holding their funds digitally.

Consumers and merchants alike, on a daily basis, have been complaining about the digital payment systems and banking sector that was created to help make conducting business easier, resulting in frustration.

"Just trying to make a bill payment online, sometimes don't always go as smoothly as you'd like it to be. Sometimes, just putting in your card information and it don't go through, or you make a payment and it don't show up on the other end," Keron, a consumer told the Jamaica Observer.

She expressed that while she would prefer using her card for more transactions, system failures don't make that possible.

"Even today when I try to get some water for the house and I had the card, I didn't have much cash and I could not make a payment because their card machine has a limit of over 500 dollars. I went to the ATM and it had no cash, so it's been really frustrating," she said.

Connectivity issues with point-of-sale (POS) machines and technological glitches have been just as frustrating to merchants, resulting in some avoiding the technology altogether.

Taxi operator Jardane Oliphant is one such example. He explained to the Business Observer that an inconsistent digital system can be a threat to his livelihood.

"When the people have the cash you know that the money is there, but you don't want to go all the way to Ochi or wherever [from Kingston] and when you reach now you find say the system is down or they don't have enough funds or they can't access it," said Oliphant.

According to Jevan Henry, an assistant lecturer in the Department of Economics at The University of the West Indies, the situation described by Oliphant has made people reluctant to be without physical banknotes.

"They want to ensure they have extra cash on hand for when the ATM or the POS machines break down. But then they draw a larger portion of money anyway and use the ATM less frequently," said Henry.

Figures from the Bank of Jamaica's (BOJ's) 2022 annual report showed that "the number of POS terminals increased by 4.6 per cent to 49 532".

But with all the digital payment systems in place, the lack of reliable or adequate broadband connectivity or functionality can hinder Jamaica's ability to quickly transition into a digital economy.