The Tribune

BY NATARIO McKENZIE


Tribune Business Reporter


nmckenzie@tribunemedia.net

MasterCard is looking to expand its electronic payment offering among Bahamian “non-traditional” merchants, staring with taxi drivers and straw market vendors, yesterday urging them to “get on board” with the technology or “get left behind”.

Ray Merceron, vice-president and territory head for the western Caribbean, told Tribune Business that Bahamian merchants who were not able to accept electronic payments were “losing money”, with MasterCard looking extend its offering to as many businesses as possible.

“We’re looking at the taxi drivers and straw vendors initially, but you have the street vendors, the jet ski operators and food delivery services, for example,” he said.

“Although we have a strong concentration on making this seamless for visitors, it’s also domestic players as well, because locals will be able to benefit from that fact that they don’t have to carry this much cash around.”

Mr Merceron. added: “Not being allowed to accept electronic payments will result in a loss of sales. You have people coming in who want to pay with their credit cards and don’t carry cash.

“It creates a competitive advantage for merchants who offer electronic payments. You either have to get with this technology or be left behind. We are trying to give everybody the option so that everyone gets a piece of the pie. The pie is big enough.”
 Raphael Fuentes, director of acceptance and market development, said the expansion of MasterCard’s Cashless Pioneers initiative to taxi drivers and straw vendors alone should bring a few thousand merchants on to the electronic payment platform.

“This is only part of an initiative to expand acceptances, particularly for non-traditional merchants. We are focusing on the non-traditional merchant services like taxi cabs that are important for the travellers,” he said.

“International travellers have come to expect that they can use their credit card as seamlessly as they do at home.”

Cheryl Cambridge, owner of Cheryl’s Bahamas Taxi & Tours, a MasterCard Cashless Pioneer and one of the first taxi drivers in the country to offer electronic payments, said the offering had enhanced her business by 60 per cent.

“It has enhanced my business about 60 per cent. Quite a bit of my work comes from overseas. People want to pay in advance to ensure that when they come they have their transportation available. With me having a credit card I’m able to accept their deposit,” said Mrs Cambridge.
 She acknowledged that the electronic offering would also help allay security concerns, noting that taxi drivers were being robbed on a frequent basis.

“Quite a few taxi drivers get robbed every other day after returning home. If word got around that taxi drivers have credit card payments, I believe it be more safe for the taxi drivers,” said Mrs Cambridge.

“Credit cards are the way to go. I have proven it. You get more tips that way. A few weeks ago one of my drivers got an $80 tip on a $20 fare because of the credit card. Your business will grow more if you accept credit cards with the credit card. Some 80 per cent of our business is tourism. Most of the cruise ship passengers are carrying around less cash because they are being warned by the cruise directors not to carry cash and just use the credit cards.”

Mr Merceron added: “In the case of taxis you have tips. In the case of other merchants they have more volume of sales. What the credit card does is expand the purchasing power of an individual, and you are able to extend the purchases you want want to make. It makes transactions faster and more secure.”