Mastercard to roll out cardless services in Jamaica next year

By Anthony Morgan

Payment provider, Mastercard, is reportedly on track to ink deals with three local banks to boost its online payment system in Jamaica next year. It would make online payments easier for consumers, merchants, and businesses. Details are not yet disclosed, but at least one product will include money transfer services.

Dalton Fowles, Country Manager, Mastercard Jamaica

Speaking recently on Taking Stock with Kalilah Reynolds, Country Manager of Mastercard in Jamaica, Dalton Fowles, said they have done a “great job” in identifying partners, noting that at least “three partner banks” could be brought on board in 2021 to propel its e-commerce activities.

“We will change the narrative in the market,” he said, adding that Mastercard is close to inking a particular deal with a bank which could provide an alternative to popular online wallets such as PayPal.

“I cannot speak too much about it now, but there are lots of conversations ongoing,” said Fowles.

Mastercard operates a global payment network which banks and other financial entities access to provide retail and business services around the world. Traditionally, banks would issue cards co-branded with Mastercard. Going forward, similar relationships will continue but with more digital focus rather than on an issued card.

For instance, at the start of the COVID-19 pandemic in Jamaica, Mastercard partnered with food delivery companies 7krave, Quickplate and Mailpac, to help with logistics to offset issues which arose as a result of the restrictions to reduce the spread of the virus.

Fowles said with the “gig economy” expanding and integrating digital payments, Mastercard has seen the need to make more e-commerce solutions available. The gig economy refers to those with flexible, temporary or freelance work.

Fowles said discussions are ongoing with a number of local fintech companies, with some even being approved for funding to ensure their payment solutions are up to standard before they are introduced to the market. He said these companies would focus on making sure small entrepreneurs can “get paid and get digital” at the same time.

In order to offer remittance type services, the company would need to roll out person to person (P2P) solutions. P2P technology allows customers to transfer funds from their bank account or credit card to another individual’s account via the Internet or a mobile phone.

He said there are plans to introduce “tap on phone” payments in Jamaica next year. This will allow small businesses to use smartphones to transact Mastercard payments instead of traditional swipe card machines.