Central Bank assures readiness, security for digital payments launch

The Central Bank of Barbados has moved to reassure the public that the new national digital payments platform, BIM Pay, will be fully tested and secure ahead of its March 31 rollout, top officials expressing complete confidence in the system’s safety and readiness. 

The bank is putting in the final measures to ensure that the system has adequate security to protect users against modern financial threats, said Central Bank Governor Dr Kevin Greenidge. 

“We are in the testing phase. We are testing and testing, every transaction that can possibly happen,” the governor said. “We cannot, and they will not, launch on March 31 unless they have a high degree of confidence. However, at this moment, I am certain, beyond a shadow of a doubt, that we will make our March 31 date, and when we do launch, we will be ready.”

Addressing rising concerns over cybercrime on the central bank’s online educational platform recently, Dr Greenidge emphasised that the new system is not merely a “fancy” upgrade but a robust evolution of the island’s financial landscape. He noted that the Central Bank has funnelled significant resources into cutting-edge defences to ensure a seamless and safe transition.

“The old system is very secure. The new system is even more secure because we’ve built more technology,” said Dr Greenidge.

He further explained that the Central Bank has significantly ramped up its internal capabilities to stay ahead of bad actors.

“We have spent quite a bit of resources improving in that area. So the system itself is even more secure than it was before. Health and safety of the financial system is our number one responsibility… it’s part of our mandate, and we don’t take it lightly.”

While the back end of BIM Pay utilises sophisticated AI and encryption, the governor was quick to point out that technology is only one half of the equation. He noted that the human element remains the most critical link in the security chain.

“A large part of that security tool will always rely on the user, and for that, that’s why we are doing the huge educational programme,” Dr Greenidge explained. “Double authentication of your passwords, receiving a code, not sharing information — we are all in this; it is a complete package.”

With the launch date fast approaching, the Central Bank, commercial banks, and credit unions are reportedly operating in a 24-hour cycle to complete rigorous stress tests. Every possible transaction type is being simulated to ensure no vulnerabilities exist before the public gains access.

Deputy Central Bank Governor Michelle Doyle sought to explain the activation process for people who are without a traditional bank account.

The onboarding process for the e-wallet is designed to be as intuitive as the mobile applications Barbadians use daily, she said. Users on both Android and iOS devices can download the app from their respective stores.

BIM Pay allows the “unbanked” to operate a digital wallet by using a licensed financial institution or payment service provider (PSP) as a custodian, rather than being a direct account holder. This distinction is critical: it removes the traditional barriers to entry associated with opening a bank account, while maintaining the safety of the national financial infrastructure.

During setup, a valid mobile number and email address are mandatory for activation. The platform then offers users a choice: link the wallet to an existing bank account or proceed without one. For those in the latter category, the selection of a “custodian” becomes the vital next step to make the wallet operational.

“So that’s what somebody without a bank account would do,” Deputy Governor Doyle said. “You have to then identify which institution you want to link that e-wallet to for the purpose of having it active.”

To prevent the system from being exploited by “bad actors”, the Central Bank has implemented a Simplified Due Diligence framework. This streamlined Know Your Customer (KYC) process requires basic data — such as nationality and national ID numbers — to be populated within the app for immediate validation.

The Central Bank has set a strict 30-minute window for institutions to validate these submissions. “Obviously, it’s an automated process in many respects,” Doyle explained. “It’s only if the institution deems that there is an issue with the data that you have submitted that then that particular wallet may be flagged for further review.”

The deputy governor emphasised that this rigorous but rapid oversight is essential for maintaining trust: “As the central bank, we want to ensure that there are no bad actors or fraudulent activity on our system. That gives you a sense as to how the wallet will function and what type of data you will have to submit in order to activate that basic transaction account.”

The Central Bank is introducing a tiered approach to digital spending to manage risk while maximising participation. Under the scheme rules, the basic access tier — relying only on simplified due diligence — carries a balance limit of $750.

For users requiring higher transaction volumes or larger balances, a second-tier approval process is available. This requires submitting additional information to the chosen custodian to unlock a higher level of service.

“As a central bank, we have to balance between making sure that as many people as possible have access and are included, but we also have to make sure that we are not inadvertently allowing bad actors,” Doyle concluded. “If you want to do a higher volume of transactions, we need to provide additional information.”