Jamaica to launch mobile money

The Jamaica has plans to launch a mobile payments service to promote financial inclusion among the under-banked population of the country, local media reports.

Anthony Hylton, the Minister of Industry, Investment and Commerce, said that the government is working in co-operation with the Development Bank of Jamaica to build a service called Mobile Money.

The government intends to launch a trial period and test the system which is also being assessed by the Bank of Jamaica.

(More: An African idea about to go global)

Mobile Money will enable mobile payments at the point of sale, peer to peer transfers, and bank account balance checks.

Hylton, said: “Mobile money is beneficial to the unbanked and under-banked segments of the population of Jamaica. Access to savings accounts, insurance and other financial services improves the quality of life of the poor.”

He added: “This has the potential to reduce transaction costs for micro-finance institutions, which will lead to a reduction in interest rates to micro-borrowers, and greater stimulation of economic activities.”