“We
will be working with the larger banks and the BOJ ... to get a model that works
with the regulations - because that model is not yet decided upon”
CEO for Digicel
Jamaica, Barry O'Brien in conversation with the Wednesday Business Gleaner on
Wednesday April 23rd 2014
It
may not have escaped the notice of some of my readers that I’d mentioned that Telecom
Provider Digicel has plans to
launch an e-Money service, more popularly known as Mobile Money as reported in
“Digicel
to roll out e-Money service in Jamaica”, published Wednesday April 23, 2014
by Richard Browne, Business Reporter, The
Jamaica Gleaner.
And
yet again, Jamaica is not the first to receive this service, as it’s already
been used in Haiti under the Brand name Tcho Tcho Mobile by Digicel Haiti. Not bad for a
country that also makes their own Tablets, a feat Jamaica is yet to emulate as
explained in my blog
article entitled “Haiti's
Surtab SA and Handxom SA making 7-inch Tablet to supply Digicel - Pengelley's
Tablets need Cheap Electricity for Plants to make LED, Li-Ion Batteries and
Solar Panels”.
Telecom
Provider Digicel apparently had
harboured thoughts of going into Mobile Money as far back as 2012 when they’d
partnered with Boom Financial and inked a US$17 million MOU (Memorandum of
Understanding) with a view to enter the Remittance Market using their Mobile Network
as the Platform to deliver the service.
They
have not succeeded in Jamaica. But they’d already made a mark in Haiti by
November 2010 where they launched their Mobile Money service Tcho Tcho Mobile with
ScotiaBank as their Banking partner as stated in “MOBILE
MONEY SERVICE COMES TO HAITI WITH “TCHO TCHO MOBILE” FROM DIGICEL AND
SCOTIABANK”, published Monday, 22 November, 2010, Digicel Group.
Up
to this point, Tcho Tcho Mobile had been wildly popular in this very large and
still very wild and mountainous country where Banking services are almost
non-existent and bank lines are super long.
If your studying French, now’s the time to bone up by watching this
video from Digicel Haiti!
With
more than 50 merchants islandwide granting discounts and high as 20%, Tcho Tcho
allows customer to send and receive as much as US$2,999 per day using their Mobile
phones. The partnership with Scotiabank, which is to ensure compliance with
Haiti's Central Bank to prevent Money Laundering, suggests that if Telecom
Provider plans to launch a similar service in Jamaica, Scotiabank , may be
their partner in Jamaica.
Digicel decided on Mobile
Money – History of Mobile Money in Jamaica means that ScotiaBank’s their Bank
Coincidentally,
2012 was also the same year that the JCCUL (Jamaica Cooperative Credit Union
League) had also partnered with Mozido Jamaica Limited in to conquer the US$2
billion Remittance Market, only to have their plans given the kibosh by the BOJ
(Bank of Jamaica) in march 2012 as pointed out in my blog article entitled “JCCUL
JCUES is put on hold by the BOJ - ePayment setback means Mozido has been
Bewitched”.
Their
service, JCUES (Jamaica Credit Union e-Payment Services), would have been the
first Mobile Money service in Jamaica. It would have heralded the coming of the
Cashless Society, with the Unbanked in Jamaican Society using their Mobile
Phones to do transactions with their Remittances instead of physical Cash as
pointed out in my
blog article entitled “BOJ stalling on Mobile Money Regulations as new
entrants appear - Herald for the Cashless Society as Smartphones and Mobile Money
are The Perfect Storm and Curse of Chucky”.
The
BOJ eventually laid some ground rules for Mobile Money in February 2013 as
stated in my blog article entitled “BOJ to regulate and approve Mobile Money Industry in
Jamaica - JCCUL JCUES is the Man of Steel as GraceKennedy joins The Last Stand
for a Cashless Society” by
which time other player had come on stream with their plans to capitalize on
this untapped market.
Eventually
the JCCUL and Mozido Jamaica Limited partnership on JCUES bore fruit, with the
BOJ finally giving approval for Mobile Money Services in July of 2013 as stated
in my blog article entitled “JCCUL
get's approval from BOJ to launch their JCUES Mobile Money Platform - JCUES Mobile
Money Wolverine (2013) marks the Kick-Ass 2 (2013) beginning of a Cashless
Society”.
Since
then I've not seen any large scale implementation of JCUES or any Marketing,
suggesting that they're still ramping up for a launch, possibly by July 2014.
Digicel taking
advantage of smartphone Boom – ScotiaBank partnership may herald Cashless
Society
After
all, Telecom Provider Digicel has
it as their aim to boost ICT’s (Internet and computer Technology) contribution
to their Financial bottom line to 25% and higher as stated in my blog article entitled
“Digicel
to invest US$85 million in 4G LTE Network - 25% of Total revenue from ICT as 4G
LTE Investments designed to weather the coming Summer WhatsApp Storm”.
So
Telecom Provider Digicel is taking
advantage of the new Regulatory environment created by the BOJ and have decided
to throw their hat into the Mobile Money Market. The US$2 billion Remittances
Market is too lucrative for them to ignore. Especially as Tcho Tcho Mobile has
been so successful for Digicel
Haiti!
Interestingly
too, their Telecom Network is creating the conditions for Mobile Money to
blossom. Since Christmas 2013, the DL600 and the DL700 smartphones have been
boosting the use of Data Service in Jamaica for BOTH Telecom Provider LIME and
Telecom Provider Digicel as
pointed out in my blog article
entitled “Jamaicans
fall in love with Digicel's DL600 and DL700 during Christmas 2013 - Sub-US$100
smartphones driving rapid smartphone adoption in Jamaica as Manufacturing is
Possible”.
Now
with 4G LTE (Long Term Evolution) licenses being sold and Wireless Broadband
the horizon as described in my blog article
entitled “LIME
and Digicel have purchase AWS and 700 MHZ Spectrum for 4G LTE - Spectrum
Purchase by the Number with Strings Attached as Ministry gets kitty donations
from Local Telcos”, both Telecom Providers have plans to launched their own
LTE Wireless Broadband Networks.
Good
to note that Broadband Internet isn’t needed to make Mobile Money work, as it
can be done mainly via SMS (Short Messaging Service) or Text Messaging. This is
the case in Haiti, where the Money is spent via sending and receiving a Text
message with the Terminals at the store for processing Cash being the only Data
Connected Devices, mainly using EDGE (Enhanced Data Rates for GSM Evolution) to
access the Boom Financial Platform for Tcho Tcho Mobile.
Minister
of Finance Dr. Peter Phillips missed a Golden opportunity to implement an ATM Withdrawal
Tax and in the process, stipulate that all Cash Transactions be outlawed and
instead be done via the newly-regulated Mobile Money Systems as pointed out in
my blog article
entitled “Minister
of Finance, Dr. Peter Phillips withdraws ATM WithDrawal Tax - Wealthier Class
Big Stick quells the Perfect Storm for Mobile Money and Cashless Society”.
Possibly
Telecom Provider Digicel, via
slick marketing, can launch a Mobile Money service powered by Boom Financial in
partnership with Scotiabank that can get Jamaicans sending Remittances to
Jamaica naturally interested in doing their transactions via Mobile Money!
Until
then, fellow Jamaicans, Tcho Tcho from Digicel Haiti!
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