Mastercard has issued a call to action for financial technology companies to solve financial problems in the Caribbean. In return, Mastercard provides expertise in regional regulatory compliance, market access and the ability to license and certify products.
“We are more of a network that enables different fintechs to introduce new products to the market within the context of local regulations,” Dalton Fowles, Mastercard’s country manager for Barbados, Jamaica, Trinidad & Tobago and the Eastern Caribbean, told the Trinidad and Tobagos. Daily Express.
Fowles gave the example of digital payments for small and medium businesses, especially local mom-and-pop stores. He said tap-to-pay options will soon appear in the region.
Helping these small businesses can be a boon to the broader economy. The Caribbean Development Bank reports that micro, small and medium enterprises (MSMEs) account for approximately 50% of regional jobs and 60% to 70% of GDP.
The region’s unbanked communities are another major target for fintech solutions. According to the National Financial Literacy Program, an estimated 19% of Trinidad and Tobago’s population will be unbanked by 2022. In Jamaica, this rises to around 22%, according to the Bank of Jamaica in its National Financial Inclusion Report 2024. Some estimates put the number of unbanked people in the Caribbean at two-thirds of the 45 million population.
Last year, the Caribbean Fintech Sprint for Financial Inclusion was launched, an open call for solutions to regional financial issues, supported by the European Union and the United Nations Capital Development Fund. The winners were Unqueue and MLajan Mobile Wallet. Unqueue helps smallholder farmers access markets, while MLajan Mobile Wallet provides digital financial services in Dominica.
A Mastercard whitepaper released in March 2024, covering remittances or cross-border payments, highlighted digital offerings for money environments, transaction transparency and security, regulatory compliance, convenience and value as key to potential products and services. Mastercard studies have found that some Caribbean markets have 30% to 45% of their GDP in cash, which Fowles believes is ripe for digitalization.
