PUSHING to grow acceptance across more segments of the population locally, payments giant Mastercard, through a pilot programme now underway in the second capital, is looking to onboard hundreds of micro merchants, particularly those in the craft sector.

Mastercard country manager for Jamaica, Trinidad, Barbados and the eastern Caribbean, Dalton Fowles, in a sit-down with the Jamaica Observer during the company’s flagship Latin America & Caribbean (LAC) Innovation Forum held last week in Miami, said the project is being done in partnership with the ministries of industry, finance, and economic growth as well as National Commercial Bank (NCB).

“We’re targeting about 600 micro merchants across Montego Bay, which mainly includes artisans and craft vendors; some taxi drivers will also be included as part of the framework. And what we’re essentially giving them is the tap-on-phone technology that will enable them to begin accepting payments by cards. In some cases we’ve actually provided physical phones for those persons who may not have a handset that is equipped to support the technology,” Fowles told the Business Observer.

“We’ve started out in Montego Bay because of the tourism impact but our goal is to go into every village where there are lots of other micro businesses which we can also onboard as part of this inclusive project,” he added.

With micro, small and medium-size enterprises (MSMEs) globally recognised as the engine of growth in most economies, responsible for thousands in employment and significant gross domestic product (GDP) contributions, Mastercard through this latest programme aims to reach more of the unbanked populations as it brings increased digital solutions to facilitate payments.

“We have chosen to target these craft operators as, very often, in selling their wares to tourists they struggle to make a sale, as when those tourists come off the cruise ships its cards that they’ll mostly have and not necessarily cash. As such, we saw it as a segment we could go after and one we can replicate right across the market as we continue to roll it out — because we believe that it is in having inclusive growth that we will be able to drive the economy,” Fowles said.

The tap-on-phone technology being offered is regarded as a turnkey, mobile, point-of-sale, cost-effective solution that will allow merchants to use a smartphone or near field communication (NFC)-enabled device to accept payments from any contactless card or mobile wallet. At present, Apple’s iPhones and a number of Samsung Galaxy handsets are those said to be equipped with NFC features.

With the NFC technology, users are allowed to make secure transactions, connecting electronic devices with just a touch. NFC transmissions — which are short range (from a touch to a few centimetres) — largely require devices to be in close proximity, and with no extra hardware required more small businesses are being urged to take advantage of this on-the-go solution to enable quick and convenient payment options.

Mastercard, which prides itself as a leader with this innovation, said the pilot comes as another of those ways in which it continues to support its partners in all continents spread across more than 100 markets globally.

Fowles, in underscoring the value of the current programme, which is slated for further expansion as more merchants across the island are added, said it will help to give smaller players a chance to cash in on sales in the digital economy. He said though cash continues to remain king in the local market, studies have increasingly revealed that there is also a growing acceptance of digital payments.

“As we move into the new year our focus continues to revolve around inclusive growth and so we continue to invest in technologies that will reduce the likelihood of fraud. We won’t be able to grow the digital economy or get the desired inclusivity if people have need to fear that their transactions are not secured. With this pilot we therefore not only want to bring more people into the formal economy but to also protect the ecosystem,” the country manager said.