A majority of the entities that have applied to Bank of Jamaica (BOJ) to offer electronic retail payment services have been sent back to the drawing board.

Of the seven companies that have applied for authorisation from the BOJ, the Jamaica Co-Operative Credit Union League’s (JCCUL) is the only entity that can roll out phase one of its sevices — Jamaica Credit Union e-payment Services System (JCUES), which includes bill payment, bill enquiries and mobile phone top-ups.

But the central bank was unable to proceed with the applications of the other entities because they did not fully satisfy the requirements of the “Guidelines for Electronic Retail Payment Services.”

More specifically, the BOJ sid it was unable to proceed further with the applications because of deficiencies in areas such as governance arrangements, operational requirements and risk management framework. The other six entities among to the original companes to apply the BOJ, which includes GraceKennedy, commercial banks and one operator outside of the financial sector, may reapply for authorisation as soon as requisite documentation is completed and appropriate arrangements are in place in keeping with the guidelines.

“We are working closely with the respective regulators and partners to ensure that, when we do offer our electronic payment service to customers, it showcases the GraceKennedy excellence that customers have grown accustomed to,” said Don Wehby, the group’s chief executive officer.

The conglomerate, which owns a bank and the largest remittance business in Jamaica, noted the exciting prospects that e-payments present for its business and customers. It is also banking on the large percentage of the population that don’t have bank accounts.

“With First Global Bank and our expansive Western Union and Bill Express platforms as arsenals in the GraceKennedy family, we are strategically positioned to offer a service that will revolutionise the market in the same way we have done in the past with remittance, bill payment and banking,” said Wehby in an email response to the Business Observer yesterday.

“GraceKennedy has received valuable feedback from our regulators and will be working with them to ensure our systems are robust and compliant with this new payment channel.”

Still, it’s not easy to get approval.

Companies that have applied will have to go through periods of assessment. The first stage is a business assessment that involves a review of the business plans, financial strength, managerial and technical expertise and the governance and administrative arrangements that will be employed by the applicant.

Once the central bank is satisfied that the company has a legitimate operation, they will move onto doing on-site evaluations.

What’s more, all approvals, including the one given to JCCL, are subject to a pilot phase within a specified timeline, a continuous assessment of the planned services during the pilot by the bank.

And after a successful conclusion of the pilot phase, a final authorisation for the product will be given.

“The central bank is facilitating a different arrangement and stands committed to making the system secured,” said Livingstone Morrison, deputy governor of the BOJ. “It has put the framework in place for companies to innovate.”

Having received the nod to launch a three-month pilot project, JCCUL will be announcing the participating credit unions and billers in the first phase of the e-payment services programme within the next few days.

Its customers will be able to put money in their accounts to allow them to make bill payments with companies that the credit unions will collaborate with, according to Glenworth Francis, the general manager of JCCUL.