Barbados will not transition to a cashless economy, the Central Bank governor said on Monday, moving to reassure the public even as digital payment systems rapidly reshape how people and businesses conduct transactions.
Dr Kevin Greenidge told journalists that while cash will remain in circulation, increasing use of digital platforms such as BiMPay is expected to drive an organic decline in cash transactions.
“We have no plans to go cashless,” he said in a briefing on last Friday’s inauguration of the nationwide digital payment platform, BiMPay. “In countries that have implemented instant payment systems like Pix in Brazil, UPI (Unified Payments Interface) in India and PromptPay in Thailand, you saw a natural reduction in the use of cash, simply because you had another convenient way of paying. The use of cash will reduce organically and naturally.”
“You go to China. India, Kenya. Try paying with cash. Nobody is taking it. It will naturally happen once you have the convenience to scan. In your wallet, you have your debit card, your credit card, you have your checkbook and some cash or you have your BiMPay wallet.”
“Pick which one you’re using. So you will find that naturally persons will say ‘I really don’t need cash. It’s bulky and I don’t want to tempt anybody’. So there is no plan to reduce cash. The natural growth of credit cards happened. It will happen naturally.”
Nearly $8m in about 20 000 transactions passed through BiMPay in its first two days, the Central Bank said.
Dr Greenidge also sought to dispel fears that banks will charge fees for transactions conducted through BiMPay, insisting that online transactions between individuals and between individuals and businesses will remain free.
“Central Bank remains the regulator, and we haven’t given up our job yet. Any institution looking to apply fees must come to us first for approval. My stance is this and has not changed: online transactions person to person, persons to business is free and remains free and that is not changing. So no financial institution can change that without our approval.”
The Central Bank governor touted the new payment system’s role in protecting small businesses and supporting their growth:
“If you own a shop and you want to take a credit card, you have to have a point of sale machine and there is a fee attached to that. If you are a small proprietor owning say a rum shop, download the app and get your QR code, the person scans and pays and it goes directly into the merchant’s account.”
“So you are saving money, therefore, from the machine that you would have to pay a fee and then you don’t have to miss a sale because if the person does not have cash, they can scan and this is what we will expect will happen and the type of development we expect to see.”
(JB)
