Central Bank’s BiMPay digital payments ‘to expand financial access for all’

Barbadians without a bank account could be signed up for one in as little as half-an-hour under a new instant digital payment system the Central Bank is set to launch on June 12, with Governor Dr Kevin Greenidge describing BiMPay as a “financial road network” built to serve every citizen — from village shopkeepers to hurricane survivors awaiting emergency relief.

Speaking to media executives, economists and banking officials at the Grand Salle of the Central Bank Building in the Tom Adams Financial Complex, Dr Greenidge and senior officials detailed the system’s capabilities, emphasising that while the world is going digital, BiMPay is not a cryptocurrency but a secure, regulated extension of the Barbadian dollar.

Addressing concerns about why a regulator is entering the retail tech space, the governor stressed that they are not taking over the retail space but are lending support to the national infrastructure.

“Imagine how the government goes out and builds roads in a rural area, and all of a sudden shops spring up and business spreads because they see traffic coming through,” the governor explained. “We are building the financial road. We don’t go into the supermarket, but once we provide the financial infrastructure, businesses will do better.”

He said the system is designed to be a public good, lowering transaction costs for small businesses and providing a 24/7 payment route that remains functional even when traditional systems face hurdles. The Central Bank will own and operate the platform to ensure sovereignty and prevent monopolistic pricing, Dr Greenidge said.

One of the most significant features of BiMPay is its E-KYC (Electronic Know Your Customer) process, which allows individuals without a traditional bank account to get started in as little as 30 minutes. Sagicor Bank is already on board, and Dr Greenidge stated that by partnering with that institution, the app allows users to essentially apply for a bank account through the interface.

“When we say unbanked, once you sign up for the BiMPay app, what you’re essentially getting is you’re actually applying to get a bank account,” a senior official noted. “So you now become ‘banked’. but specifically with the institution.”

For those worried about losing access to physical cash, the team assured the public that the wallet is a mirror of a bank account.

“If you’re talking about getting your cash, you can go to the Sagicor ATM because the money is on deposit with them,” the team explained, adding that future phases would include “cash-in and cash-out” facilities at various points.

The briefing highlighted the system’s role in national resilience, particularly during natural disasters. Reflecting on recent regional hurricanes, the Governor noted that physical banks and ATMs often become inaccessible, delaying critical aid.

“If they had a wallet, you can shoot money to everybody by the e-wallet. I send money to you, you get wood, and you start your construction,” the Governor said, referencing the speed of digital transfers compared to the months it took to distribute government solidarity grants in the past.

“With a wallet on board, within a few seconds, everybody gets the money. You don’t need a physical bank to go and see.”

With digital payments comes the fear of cybercrime. The Central Bank assured that “redundancy on top of redundancy” has been built into the system. A dedicated fraud detection module sits atop the platform, monitoring transaction velocity and patterns to flag suspicious activity in real time.

“If there are 100 transactions in ten seconds from a particular number, the system flags it to verify it isn’t spam,” the central bank’s deputy director of payments and IT support, Ross Simmons, explained.

The official further clarified that while the system follows strict anti-money laundering (AML) and KYC guidelines, the goal is a “simplified due diligence” that does not frustrate the average user, such as a coconut vendor or a small craft shop.

For the village shops, BiMPay offers a way to accept digital payments without the need for expensive point-of-sale (POS) terminals.

“You don’t need fancy equipment. If you’ve got a phone, you’ve got BiMPay,” the governor declared. “When you stick up that piece of paper with the QR code, you’re good to go.”

The benefits for small businesses include instant credit, improved cash flow as payments are direct, no “chargeback” risks or “insufficient funds” fees associated with bounced cheques, as well as digital footprints that help small vendors build a credit history to eventually access bank loans.

While BiMPay is currently a domestic platform, the Central Bank has its sights set on the wider Caribbean. Discussions are already under way regarding the Caribbean Payment and Settlement System (CPAPS).

“Imagine if Barbados gets it, Jamaica gets it… then we can link up together into a Caribbean payment system using our own local currencies,” the governor envisioned. Eventually, the system aims to integrate with the international SWIFT network.

Dr Greenidge concluded the session by reminding media executives and other officials that BiMPay is an option, not a mandate.

“This is just another way of accessing your currency. You can use cash, you can walk in the bank, you can do checks. This is about convenience and choice.”

As the platform rolls out, the bank expects a “natural reduction” in the cost of handling cash — a saving they hope will eventually be passed on to the consumer. 

(RR)