The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

BAHAMIAN digital payments transactions doubled in value to $4.5m for November 2023, the Central Bank disclosed yesterday, with mobile wallet holders increasing by 20 percent over the year’s first 11 months.

The regulator, giving its latest update on the growth in electronic or mobile payments, added that the value of Sand Dollars - the digital Bahamian dollar - in circulation had increased by almost 61 percent during 2023’s first 11 months to hit $1.7m. The Central Bank- backed digital currency was also said to have accounted for the bulk of digital payments transactions processed in November 2023.

“In November, the combined value of per- son-to-business and business-to-business transactions totalled $4.5m, with the bulk processed in Sand Dollars,” the Central Bank said of digital payments activity for the month.

“This was twice the level of November 2022, when usage had moderated after the October 2022 festival period. As at December 2023, personal wallets in use stood at 118,955, an expansion of 20 percent for the year-to-date. Moreover, Sand Dollars in circulation rose by 60.8 percent to $1.7m.”

The Central Bank said November 2023 had been up against tough prior year comparatives as the Government had then been using more electronic transfers to make benefit and other payments amid the waning COVID-19 pandemic.

“The latest data, as at November 2023, indicates modest seasonal growth in digital payments activities inclusive of Sand Dollar, compared to the same period of 2022,” the Central Bank said. “Even though the year-to-date trends were still dampened by reduced government transfer payments, usage continued to benefit from various cultural events and the Central Bank’s promotional activities.”

John Rolle, the Central Bank’s governor, admitted earlier this week that the Sand Dollar’s roll-out was “slightly off schedule” as he unveiled plans to “deepen the interaction” with the commercial banking industry to accelerate the digital currency’s usage.

“In terms of how we look at the Sand Dollar for 2024, this is now the period when we begin to deepen the interaction with commercial banks because, as we look to improve the general state of inclusion and access to payment services in this year, we are also beginning to set targets to improve the overall experience in terms of the speed and timeliness of domestic retail payments,” Mr Rolle said.

“The commercial banks now become very pivotal in terms of how we extend the reach of the Sand Dollar, particularly for businesses and, in that respect, we’re slightly off our schedule but we do anticipate in the first quarter that we will complete the upgrade to the application to allow individuals to more directly onboard from mobile wallet accounts because we realise that’s critical in pushing greater uptake.

“The other point is that we have already seen some progress in terms of the integration of the Sand Dollar with the Automated Clearing House (ACH) in the banking system for transfers in and out of mobile wallets,” the Governor added.

“There are some residual steps still remaining around payment providers to get their platform fully up to the mark in terms of allowing the two-way flow. That’s also a very important point for us in the very near term which we think will promote uptake.”

The Central Bank, in yesterday’s update, said: “Continued development and associated beta testing remain underway for the Central Bank’s original Sand Dollar mobile wallet. The enhancements will incorporate new features to improve user experience.

“Wallet holders will benefit from several self-service tools to assist with onboard- ing and wallet recovery. The adjusted timeline for the release of the new wallet is the first quarter of 2024.” The Central Bank disbursed some $160,000 worth of Sand Dollars during the 2023 full year via incentives and promotions, including charitable events and festivals plus grocery top-ups and rebates.