Growth & Jobs | MSMEs sceptic, but experts say payment gateways secure

Amid the increase in online scamming schemes and bank card phishing, some entrepreneurs share scepticism in using online payment methods, despite their increasing popularity and usage.

But Germaine Bryan, business developer and start-up coach, says while vigilance is necessary, payment gateways are a secure option for micro, small & medium-sized enterprises (MSMEs) to do business.

Speaking at the Virtual Biz Zone webinar hosted by the Jamaica Business Development Corporation (JBDC) on June 17, Bryan said, “The lottery scamming ‘pandemic’ has made us very paranoid with our money and doing business online, but hosted payment gateways provide a blanket of security, as they redirect the customer to a separate payment point for completion.” In an online purchase, the hosted payment gateway facilitates the flow of securely encrypted transaction data between merchants and customers, in communication with all of the other institutions involved in the transaction process. Bryan continued, “Wherever the customer’s data is collected, that web host is responsible for keeping the customer data secure and providing technical support when problems arise. The security that the small business would have to be paying attention to is already taken care of by the provider of the service.”

As the première business development agency in Jamaica, the JBDC understands the technological gaps in the MSME sector. A recent study conducted by the agency shows that a moderate 32 per cent of MSMEs are aware of the benefits associated with digital technologies, while an even lower percentage (17 per cent) have adopted more foundational technologies like e-commerce.

This lack of comprehensive adoption of e-commerce can hinder operational efficiencies, scalability and their ability to compete in increasingly digital markets, according to the JBDC. The survey was conducted as part of the Digital Jamaica Project – a collaborative effort with the Ministry of Industry, Investment & Commerce, and project sponsor, the European Union. The project is an innovative programme to increase inclusive access to, and use of, ICT across the country, in support of the country’s transition towards being a digital economy and society.