GraceKennedy Group (GK) says it is accelerating investments in digital platforms as tightening margins in the global remittance industry push the company to adapt to rapidly changing consumer behaviour.

Group CEO Frank James, speaking at an investor briefing on Wednesday, said the shift towards digital transactions has become central to the strategy of GraceKennedy Money Services (GKMS), the company’s remittance arm.

“We are transforming our GraceKennedy Money Services (GKMS) business as digital continues to play a critical role in the future of remittances,” James said.

“Digital is where the future is, and the future is now,” he added.

The move comes as global remittance trends increasingly favour digital channels over traditional cash-based transfers. According to industry data cited by the company, digital remittance transactions surpassed cash transfers globally for the first time in 2025, signalling a major shift in how people send and receive money.

GraceKennedy says it is positioning itself to capitalise on that shift.

In 2025, GKMS’s digital business expanded by more than 50 per cent, accelerating from growth of over 40 per cent the previous year.

“If you remember, last year we said it was growing at over 40 per cent. In 2025, it grew by more than 50 per cent,” James said during the virtual meeting.

Despite the rapid expansion, digital transactions still represent only a double-digit share of GKMS’s remittance business, leaving what the company sees as significant room for further growth.

The digital push comes as the global remittance industry faces increasing margin pressure. While falling transfer costs benefit consumers, they also reduce the revenue companies earn per transaction.

That trend has already begun affecting GraceKennedy’s money services division.

In 2025, the segment generated approximately $8.3 billion in revenue but recorded a four per cent decline, weighed down by tighter margins and lower revenue per transaction in several key markets.

Remittance flows remain a critical part of Jamaica’s economy. Inflows to the island reached approximately US$3.5 billion in 2025, slightly above the US$3.4 billion recorded in 2024. Increased transfers following Hurricane Melissa contributed to the rise.

Despite the revenue decline, GraceKennedy said its money services arm continues to expand market share in several territories, including Jamaica and Guyana.

The company also highlighted strong performance from its digital platform, GK One, which it said remained Jamaica’s leading digital wallet for remittances in 2025.

GraceKennedy has been combining its digital strategy with efforts to strengthen its physical distribution network.

James said the company has been working to optimise its agent network through partnerships with established retail chains such as Courts, Cable & Wireless Jamaica (C&WJ), and Hi-Lo Food Stores. Those partnerships, he said, are already generating double-digit growth.

A pilot initiative now underway at the Hi-Lo supermarket in Barbican allows customers to collect remittances at a dedicated lane before completing their grocery shopping.

“You’ll actually be able to go, just like you’re going and buying your groceries, you’ll have a lane where you can get your remittances and then buy your groceries at the same time,” James said.

Beyond remittances, GraceKennedy said it is tightening its broader strategy to respond to a changing global environment shaped by geopolitical tensions, shifting migration patterns, supply chain disruptions, and advances in digital technology.

James said companies must increasingly focus on improving productivity, strengthening efficiency, and leveraging data and technology to remain competitive.

“In light of the changes we see happening around the world, we can’t just allow the future to happen to us — we have to design the future we want to see,” he said.

GraceKennedy, which generated approximately $178 billion in revenue in 2025, expects continued investment in technology, product development, and human capital to support its long-term growth as the business expands further beyond Jamaica.