NASSAU, BAHAMAS — A Bahamian digital payments solutions provider says that increased efforts by commercial banks to abandon their traditional brick-and-mortar locations for online payment solutions will provide ‘significant’ opportunities in the digital payment space.
Jeffrey Beckles, managing director of Island Pay Bahamas, predicted that in 2023 “we will close the gap” on education regarding the use of digital payments.
He told Eyewitness News that the shift in the traditional banking sector presents an opportunity for Bahamian consumers to adopt and use more digital tools.
“I say digital tools because when you have a digital tool in your hand it’s very different from simply making an electronic payment,” Beckles said.
“When you’re using digital tools in terms of digital cash such as the Sand Dollar you have to make sure that you understand the difference in costs; it’s significantly less than if you were using traditional payment tools.”
His comments come as a recent memo by CIBC First Caribbean which was leaked prior to a formal announcement has indicated that the bank’s branches in The Bahamas and Turks and Caicos Islands will no longer process transactions at a teller that can be carried out through “alternative banking channels” beginning January 3.
The memo said those alternative channels include instant tellers and smart automated banking machines (ABM), night depositories, online banking, and the bank’s mobile app. The bank noted that after January 3 it will not facilitate cash and check deposits, check cashing, corporate and small business deposits, withdrawals under the $3,000 ABM daily limit, credit card payments, bill payments, domestic and international transfers, transfers between CIBC FirstCaribbean accounts and transfers to other CIBC FirstCaribbean clients, and third party transfers.
It added that while opening a personal or sole proprietorship account will also not be done in a branch, those wanting to open a joint account or those who are politically exposed will have to visit a branch.
Regarding such developments, Beckles said: “We see it as a great opportunity in the digital payment space. Hopefully, Bahamians may see and understand that Island Pay and other solutions providers like Island Pay are here for the benefit of the consumer. We are looking not only in Nassau but all in the family islands to provide the same tools where banking services are not necessarily available anymore.
He continued: “This is a tremendous opportunity to propel the country forward towards greater digital adoption. Sometimes it takes significant changes in the way we do things to help us understand there are more practical, cost-effective, and user-friendly ways to do business. We believe that the more these changes that are imposed upon us the more Bahamian consumers and merchants will see the value of the Sand Dollar.”
Beckles added: “We would have liked to see more adoption but we are satisfied that through education Bahamians are learning more about digital payment tools. We have seen some growth in Island Pay. We have seen our numbers exceed 50,000 users of our solutions. I believe that in 2023 we will close the gap in the education of digital payments. Next year will be the year of greater Sand Dollar adoption.”
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