Following the Bank of Jamaica’s (BOJ) decision to suspend Alliance Financial Services Limited’s (AFSL) cambio and remittance licence, plus the revocation of their authorisation in the Fintech Regulatory Sandbox, ePay affiliates have been left scrambling to make alternative plans ahead of the busy Christmas season and upcoming school year.

AFSL acquired the card services portfolio of Alliance Payment Services Limited (APS) on October 1, 2020, which held the proprietary brand ePay. AFSL began to issue a prepaid Mastercard in May 2018 which was meant to improve financial inclusion, capture a greater share of the remittance market, and earn fee income. This led to the company co-branding arrangements with different entities including Lasco Financial Services Limited (LASF), Community & Workers of Jamaica (CWJ) Co-operative Credit Union Limited, Jamaica Civil Service Association (JCSA), and Mailpac Group Limited. The ePay services also extended to student cards used at primary and secondary schools along with a prepaid card at both international airports for payment of services with different airlines.

According to the BOJ, existing holders are still able to use the card until the funds are depleted, but cannot withdraw nor top up with additional funds. As a result, it also cannot process bill payments for clients. LASF has already noted that its Lasco Pay offering has been impacted relating to its prepaid Mastercard which clients used to receive remittances and carry out daily transactions. Though clients can opt to receive remittance payments to their bank account directly, the company will be under additional pressure during the Christmas season as it remains one of the three approved entities in the market to process MoneyGram transactions. LASF is currently testing its prepaid Visa card dubbed ‘Lasco Gold’ under the BOJ’s sandbox.

Some schools have already prompted parents who used the ePay student card to no longer use the option and that new options will be ready by December 13. The ePay card acted as a way for students to top up with cash and use the card at school and at merchants who accepted ePay.

Sunday Finance reached out to some of the other entities in the co-branded partnership, but did not receive a response up to press time.

The JCSA has more than 26,000 members with the other partners having thousands of clients as well. Mailpac had just launched the prepaid card in April to the public.

A Caribbean Airlines spokesperson confirmed that they still accept cash unlike other airlines which have gone cashless. In September 2018, AFSL launched outlets at the Sangster International Airport and Norman Manley International Airport to allow customers to purchase a prepaid card to pay for a flight or extra bags at the kiosks.

The other prepaid card solutions in the markets are attached to banks and affiliated with Mastercard International. Sagicor Bank Jamaica Limited (SBJ) issues the My Cash Jamaica card while NCB launched its own solution in April. GraceKennedy Limited intends to launch a digital wallet with a prepaid card backed by First Global Bank Limited in short order. Another commercial bank is planning to launch a new payment services provider in the financial year. SBJ is planning to switch its debit card to an international payment processor in short order while the Victoria Mutual Building Society expects to offer Visa branded debit and credit cards as well.

Alternative Payment Providers

The AFSL event highlighted the need for more options to progress society to a greater digital modality as the formal banking system remains a massive barrier for many to transition towards. In the USA, other payment options like Cash App, Apple Pay, Google Wallet and so on exist in the market space to cater to a wide cross section of citizens.

In Jamaica, the BOJ has piloted Central Bank Digital Currency (CBDC) with NCB to improve financial inclusion and the modality of money. Though this is still in the testing phase, it is unknown how the market will respond to the offering. Most Jamaicans still prefer the use of cash for a variety of reasons.

WiPay founder and CEO Aldwyn Wayne is looking to change that perception within Jamaica and the Caribbean. WiPay recently relocated its headquarters from Trinidad and Tobago to Grenada Crescent. WiPay is a registered payment services provider in the twin island republic and other Caribbean jurisdictions.

When asked about the company’s WiCard and other offerings to the market, Wayne responded, “We issue our own cards through our platform in other countries where we already got the regulatory approval. We can issue our own cards because we’re a Mastercard partner. You don’t even need a physical card and can get a card on your phone now.”

Wayne explained that there are alternative solutions that can provide similar value like digital QR codes in a closed loop manner. Through this QR code option, it launched a digital grant initiative in partnership with Member of Parliament Floyd Green in October to benefit 100 front-line workers at the Black River Hospital. The recipients received a QR code via text, WhatsApp or e-mail and were able to spend it at participating redemption centres in St Elizabeth. WiPay recently became a payment service option for Intown SuperSave Supermarket, Cutdiline and Kalilah Reynolds.

Virtual cards are a new growing product option overseas since it doesn’t degrade and can be discarded by the customer as needed. Apart from launching a point-of-sale system for merchants at a cheaper cost, their QR code system allows for customers to pay merchants with just their phone.