SVL boss sees growth prospects in e-wallets
Published:Friday | July 26, 2013 | 12:00 AM
Supreme Ventures Limited (SLV) President Brian George sees the evolution of electronic money transactions, or digital wallets, as inevitable given the interlinkages between smartphones and commerce.
But George, who acknowledged discussions with Patrick Casserly on a possible business alliance, indicated that SVL is still mulling the regulatory requirements for electronic wallet services in what for Jamaica is a virtually untested mobile money market.
"We have not concluded a commercial relationship, as such I cannot comment any further," said George, regarding discussions with Casserly.
Casserly is himself working with an overseas operation called PayToo Corp on a project to roll out the company's mobile wallet product in Jamaica.
Speaking broadly on the mobile money market, George said his company recognises that e-walleting is "inevitable" as a business strategy, and that it offers the potential for market growth if successfully implemented "especially in the areas of sports betting and Internet gaming, when it is fully authorised".
Mobile money refers to mobile financial services, such as banking, remittances or money transfers and payments performed from a mobile device.
Instead of paying with cash, cheque, or credit cards, the consumer uses credit stored on a mobile phone to pay for services or hard goods. It eliminates the need to visit banks or bill-payment outlets to add to accounts, as well as the need to hold bank accounts.
NEW MARKET Segments
George said digital wallets could open up new market segments for his company, including "access to a new tech-savvy demographic in the 21-35 age group who will welcome this capability".
SVL is a J$27-billion company valued by revenue. Its business lines include lottery games, sports betting and gaming lounges.
George says the future of commerce, including betting, will be dependent on the ability to integrate into the smartphone evolution.
"Betting can, by its very nature, be a spontaneous action. It is, therefore, necessary to have the electronic walleting function in place that would allow for both the payment for the bet but also for the receipt of the winnings. Ideally, this would also remove the threat of a lost or destroyed ticket that could result in unclaimed winnings, which is a major benefit to the player," he said.
Mobile money services are just being tested in Jamaica.
The Bank of Jamaica in February finalised the framework for 'Electronic Retail Payment Services', which includes e-money services. Under its provisions, which took effect in April, service providers must be licensed by the BOJ.
"From a regulatory perspective, we are very mindful of both the BOJ and BGLC's concerns about money laundering and underage gaming. It will, therefore, be necessary to put all of the necessary safeguards in place to comply with these requirements," George said.
"We have not reached the stage of applying, nor have we fully investigated the 'bureaucratic' delays that other jurisdictions have experienced. We have also not established either the costs or savings that would accrue to the company," he said.