Letter of the Day | Lessons from M-PESA for Jamaica
Published:Saturday | July 13, 2024 | 12:07 AM
THE EDITOR, Madam:
When JAM-DEX was launched in 2022, it was marketed as a game-changer, the “cash-killer”, according to some. The promise of a fully digital Jamaican dollar – one that could revolutionise how we transact and empower those left behind by the traditional financial system – was an exciting idea. But, two years later, the reality on the ground feels underwhelming. JAM-DEX, despite its potential, seems to have fallen flat, unable to find its footing even as our economy continues to grow.
Recent history has already shown us the power of digital currencies to transform economies. JAM-DEX’s potential is still there but we can’t pay our bills with ‘potential’. For JAM-DEX to have real meaning to the people, the everyday realities of the people need to be taken into consideration. There are also lessons that can be learnt from other initiatives.
M-PESA is the perfect example. While not a digital currency itself, the mobile money transfer service started as a simple idea: how do we send money to anyone at any time with no hassle? The solution was sending money via text messages and it has evolved into a service used by over 80 per cent adults in Kenya today.
The developers of M-PESA understood that widespread adoption needs to satisfy three fundamental principles: simplicity, accessibility, and affordability.
M-PESA transactions are simple and conducted through basic text messages. No smartphone, no Internet required. It is convenient to deposit or withdraw cash and transactions are affordable, with minimal fees, making it a viable and attractive option for everyone, regardless of income level.
Jamaicans are no strangers to adopting technology. But JAM-DEX, as it stands, relies heavily on smartphone apps and a consistent internet connection, things that we are still struggling with. This approach, while well-intentioned, creates a significant barrier to entry for a large portion of our population who rely on basic mobile phones or simply can’t afford expensive data plans. The vision is there, but the infrastructure is lacking.
We could learn from the M-PESA and integrate its best qualities into the JAM-DEX experience where sending money is as straightforward as sending a text message, accessible on any mobile phone regardless of Internet access, and free from burdensome data charges.
We don’t need to reinvent the wheel, M-PESA has shown us the way. By placing simplicity, accessibility, and affordability at the heart of the JAM-DEX experience, an inclusive system can be created that serves all Jamaicans.
DANE MCGIBBON