• August 23, 2019

The cost of using cash for commercial transactions continues to be one suffered by many enterprises globally, though more and more are using technology to defray those costs and recoup missed sales opportunities. 

Small commercial enterprises, especially in The Bahamas have been slow to adopt the rapidly evolving electronic payment industry and their services.

But according to John Rolle, Governor of The Central Bank of The Bahamas (CBOB), that is not entirely the fault of small commercial businesses. 

He said, speaking recent second quarter update press conference at the CBOB, that some small business owners have found credit and debit card fees per transaction to be restrictive because of the high fee structure.

But Rolle told the media that small businesses do know they are missing out on sales opportunities, especially in the tourism sector, because they have told the Central Bank as much.

“They saw a tremendous jump in their sales volumes when they employed an electronic payment solution,” said Rolle. 

“You miss out on customers who only walk around with electronic (payment options).”

Rolle said that Internationally, the cost of cash and its restrictions are widely recognized. He pointed to the average cost of insuring the process of getting deposits to reach the bank as a high cost, and holes in checkout process that cannot be traced back to the cash register as another concern. 

The Central Bank is working on creating opportunities for Bahamians who are unbanked and also those in need of electronic payment solutions, to become included in the technology space.

Rolle said two electronic solutions entities have already been approved by the Central Bank, while there already existed money transmission entities he said qualified to offer such services.

The Central Bank is also now working on its digital currency in a project called "Sand Dollar", which will be piloted on the Family Islands to determine its viability.

Meantime, mobile payment solutions companies continue to work to bring Bahamians into the digital space, though that task still continues to be slow and onerous. 

In terms of the cost of digital payment solutions, Rolle explained that a task force has been put together to determine how those costs can become less restrictive for businesses.

Electronic payment solutions giants like MasterCard have fully embraced the idea that the world is fast putting its cash away, and is expecting the future of transactions to be inside their mobile devices and online. 

MasterCard has said it is no longer simply a credit card company, but a technology company, attempting to stay far ahead of the electronic payment solution curb. 

The company has launched myriad innovative solutions for businesses and individuals within the electronic payment space, and has worked with stakeholders to make the transactions that will inevitably be done, exceptionally safe for users on both ends.

However, some commercial banks that call Canada home, are still far behind the digital payment revolution in the Caribbean, leaving their customers more exposed to fraud than those that have, say, switched to debit cards with chips.

There is no turning back from the digital payment revolution, and those not willing to embrace it will be left holding the inventory.