THE Bank of Jamaica (BOJ) has closed the files on four of the 13 entities that approached the regulatory entity to offer electronic retail payment services.

It was unable to proceed with the applications of the entities because they did not fully satisfy the requirements of the Guidelines for Electronic Retail Payment Services, according to Livingstone Morrison, deputy governor of the central bank.

“We don’t believe we should have applications languishing,” he said.

Moreover, there are entities that have decided not to continue with their applications.

As for existing electronic retail payment service providers, the BOJ is currently winding up the review of at least one entity.

Under the guidelines, existing electronic retail payment services — issuers who collect monies in exchange for value distributed in a retail system — were required to structure their organisations, administrative arrangements, and operations relating to pre-existing electronic retail payment services.

Meanwhile, deposit-taking institutions, including issuers that were jointly providing the services with entities that were not previously authorised, were instructed to take immediate steps to secure authorisation from the BOJ.

“As you can imagine, there were providers operating in the payment space before the guidelines,” Morrison said. “We don’t want to outlaw them”.

Still, new entities may re-apply for authorisation as soon as requisite documentation is completed and appropriate arrangements are in place in keeping with the guidelines.

Indeed, there is a future for mobile money and the BOJ is working with interested entities, giving necessary feedback needed to ensure they work within the framework of the guidelines.

Entities and their agents authorised to provide retail payment services will have to be transparent regarding their terms and conditions

of service

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.

“The applicants understand what we are doing, and they are pleased with the discussions we have had so far,” Morrison said.

But, the deputy governor says he cannot give a specific timeline as to when another company, like the Jamaica Co-Operative Credit Union League’s (JCCUL) will get the green light to launch a pilot phase of mobile money.

There’s no doubt other entities will get approval, Morrison noted.

A new wave of doing business will be made available to the country’s unbanked, when the companies above get to offer services, which include e-money; these are stored in devices such as mobile phone and SIM card.

It means that Jamaicans who don’t have bank accounts will soon be able to carry out transactions using a cashless system.

Furthermore, these payment instruments and services will make paying for goods and services easier.

The Central Bank is responsible for the regulation and supervision of clearing and settlement systems in Jamaica. All entities intending to offer electronic retail payment services are subject to the guidelines and are required to apply to the 0B0OJ for authorisation before starting operations.