In an attempt to further strengthen online shopping and e-commerce, which have been trending positively in the local market, the Government said it will be allocating $5 billion this fiscal year as it seeks to bolster these activities nationally.

The funds are to be disbursed through the Development Bank of Jamaica (DBJ) and is to help in financing, in particular, micro, small, and medium-sized enterprises (MSMEs) that utilise these solutions for business.

“This includes the installation of online payment and other e-commerce facilities, cross-border e-commerce, and trading and digital food ordering,” said Karl Samuda, minister of labour and social security speaking at a forum held by the Jamaica Productivity Centre (JPC) last week.

The JPC, in reporting the rapid growth of online shopping strengthened by the roll-out of more fintech products, believes that e-commerce activities will gain even greater traction, especially as the presence of the novel coronavirus pandemic and its associated infringements continue to reconfigure how businesses operate.

The Jamaica Technology and Digital Alliance (JTDA) partnering with the DBJ, through its go-digital project, had earlier sought to push the digital transformation agenda, particularly in the area of e-commerce.

Through its project, which falls under the DBJ SERVE programme, businesses, particularly those affected by the pandemic, are provided with grants of up to $300,000 and loans of up to $800,000 to catapult their operations online. From website and e-commerce platform development, to the creation of human resources, payroll, and accounting systems, the project has not only exposed these enterprises to the digital needs of their businesses but has also helped entrepreneurs to transform their operations.

Samuda, in noting how fintech has been shaping the roll-out of e-commerce products, urged locals and businesses alike to adapt to the new technologies.

“Locally, Jam-Dex is emerging as one of our digital Jamaican currencies, and more banking apps are being initialised and updated for convenient use. Fintech allows for efficient ease of transactions and, more importantly, for more Jamaicans to be incorporated into the formal banking system,” he said.

E-commerce, which comprises the buying and selling of goods and services over the Internet, is already expected to exceed projected annual revenues of over US$1 billion by 2025. Globally, the figure could also increase beyond the US$7.4 trillion estimated for the same period.

“E-commerce is a growing part of not just retail but the economy as a whole. Small businesses should look to selling online as not just an increase in revenue but a way to further connect with their audiences and expand their name. While brick and mortar are far from gone, online sales are becoming a major part of how people shop,” a Forbes magazine report stated.