Feature Remarks by the Honorable Patrick Todd Minister of State Ministry of Economic Affairs & Empowerment, Innovation, Trade, Industry & Commerce at Launch of the RBC/RBTT EZ Pay Wireless Terminal Unit The Sir Lloyd Erskine Sandiford Conference Centre March 24 th 2010 Distinguished Guests Ladies and Gentlemen In today s business environment but more in particular the banking industry, Information and Communication Technologies (ICTs) continue to play a vital role in the development of operational platforms and in the provision of efficient customer services. It is to this end that I as Minister with responsibility for Economic Affairs & Empowerment, Innovation, Trade, Industry and Commerce commend an 1
initiative such as this. I am told that this joint initiative with the RBTT and the Royal Bank of Canada; will see these two institutions launching their new EZ Pay Wireless Terminal Unit. The EZ Pay Terminal is a wireless solution that delivers blazing performance, high-end functionality, and exceptional ease of use - without tying customers to a fixed location. It swiftly handles all Debit & Credit card transactions, using a choice of the latest wireless technology, such as GPRS. These terminals can be used with either Lime or Digicel SIM cards. They can also accept Visa, MasterCard, Discover, Diners Club and CarIFS transactions. It is noted that this important initiative comes in this harsh economic climate; where institutions such as yours seek to find new and innovative ways to use ICTs to offer other products and services to their clients. Businesses using this 2
terminal would also benefit from a number of services as part of the product offering, including: 24-hour settlement of all approved transactions to business account, Detailed payment of transaction processing, Daily e-mail of statements, Ongoing support and service, and Various terminal applications to suit specific industry needs for example hotels, restaurants, retailers and distributors. It is envisioned that the marriage of debit and credit card processing to wireless communication protocols would have a profound affect on the local business abilities and, on a larger scale, the overall economy. The wireless terminal unit would allow the enterprise to conduct business transactions in the field, at their customers premises or even on site at the completion of a job. No doubt, such expansion of the 3
marketplace would lift geographic requirements on businesses, allowing them to flourish with business they could not otherwise obtain. According to the Central Bank of Barbados Economic Financial Statistics Report of February 2010, there were some 99,695 credit cards issued by our local commercial banks up to the end of December 2009. The combined number of clients using debit and credit cards at both banking institutions currently stands at 400; the average yearly transactions resulting from the use of these cards have a combined dollar value of approximately US$ 15.1 million; the approximate monthly point-of-sale transaction volumes is about 144,170. These statistics bear testimony to the use of credit and debit cards in Barbados. So, as Barbadian consumers continue to rely on credit and debit cards as a preferred payment method, the need for 4
processing capabilities will no doubt expand outside the traditional wired network connections. There is also no doubt in my mind that with the current proliferation of cellular phones and wireless data networks, the need for the two (2) banking institutions to partner and provide such processing capabilities over secure wireless connections is timely. Even though the growth towards the use of card payments has been exponential, both consumers and businesses still need to be assured that their debit and credit card information is not compromised during the transaction. Even though this might not be a cause for alarm in Barbados at the moment, credit card fraud remains a big concern. The price of credit card fraud is high, it has cost cardholders and credit card issuers as much as US$500 million a year. I note that one of the services provided with the EZ Pay Terminal is fraud monitoring and clients can benefit from 5
increased control and transparency of transactions. Another major feature offered is the address verification system (AVS). This feature provides additional security for transactions by comparing the address on a customer's identification with the billing address of the credit card; which greatly cuts down on fraud. In actuality, the EZ Pay Terminal is as secure or even more secure that their wired counterparts. This terminal uses highgrade data encryption to transmit account information across an already digitally secured wireless connection, making their sensitive transmissions virtually impervious to technological eavesdropping. Established merchants and even small businesses installing such a system would be able to offer their clients additional payment options with some measure of assurance. We all know too well the entrepreneurial spirit of our people and have seen them continue to find new and innovative ways 6
to offer their products and services. This facility will make it possible for itinerant vendors and street vendors to accept payments for processed food, drink or goods purchased by the customer, regardless of location. The provision of such a service will not only build the business profile but also provide opportunities to increase sales, since it would be possible to open business opportunities in non-traditional merchant segments; as well as reduce some operating expenses. Apart from the increased sales and the reduction in some operating expenses, the EZ Pay Terminal offers a number of other benefits to its clients, these include: Opening of new markets for the client from delivery services to outside vendors Allows the merchant to extend the Point-of-Sale and process transactions anywhere, any time Clients can instantly open an extra payment lane or support an outdoor market, and 7
Increased security since the transactions are cash free I am told that prior to the launch this evening that a test pilot was conducted in order to gauge the acceptance in the market place. All indications are that there was some degree of success. From the test pilot conducted, some 15 clients have already requested the wireless terminal. The test also proved that the machine worked flawlessly and there was no need to recharge the machine during the day. The Government fully supports your efforts to use modern technologies for the provision of quality products and services to your clients. This support is fully documented in the National ICT Strategic Plan; where two of the strategic objectives are : To encourage the business community, especially SMEs, to utilize ICTs for the improving competitiveness and productivity at all levels, and 8
To promote and facilitate a culture of innovation and entrepreneurship within the Barbadian society. The government has also developed the legal and regulatory framework necessary to conduct business in this new and emerging environment. This suite of legislation includes: The Electronics Transactions Act CAP 308B which make provisions for electronic transactions and related matters, The Computer Misuse Act which makes provision for the protection of computer systems and the information contained in those systems from unauthorized access, from abuse by persons authorized to have access and related matters, There is at present a draft Data Protection Bill where the purpose is the: o o o protection of the privacy of a person in relation to personal data regulation of the collection, keeping, processing, use or dissemination of personal data, and other related matters 9
The government would certainly wish to encourage these two institutions and the industry in general, to continue to provide products and services that would make doing business in Barbados cost effective. However there remains the concern of individuals seeking to provide products and services online; that our local commercial banks are some what reluctant to approve Internet Merchant Accounts. We would be willing to engage in dialogue to deal with the issues surrounding this charge, since this line of business is seen as critical to the further development of our economy. On this note distinguished guest, ladies and gentlemen, I thank you. 10