More than three out of every four Jamaicans have limited access to safe and low-cost payment channels, says US Economist, Dr. Dawn Elliott.

Jamaica has a hidden problem as the majority of the population own bank accounts; but only a fraction of this group has access to full financial services, which allow them to participate easily and effectively in the economy, Dr. Elliott said. She was addressing the Mobile Financial Services Conference 2011 at The University of the West Indies, Mona, on December 12, 201.

“Most Jamaican make payments using cash,” the Associate Professor in the Department of Economics at Texas Christian University stated. A comprehensive research survey, which she headed, showed that only 12 percent of the population own the types of accounts which allows them to transfer money, write cheques or make credit card payments.

The survey, contracted by Solutions for Society, a Think Tank of the UWI, showed that 33.65 percent of the adult population do not own bank accounts; and, therefore use cash or the non-bank payment outlets at relatively high costs. In addition to this group, she said that almost 80 percent of those who own a bank account cannot make payments easily or conveniently to support efficient commerce, as they do not own transaction accounts.

Mobile Financial services covers mobile banking, mobile remittances or money transfers and mobile payments, said Dr. Maurice McNaughton, Director of the Centre of Excellence of the Mona School of Business (MSB), at The UWI and a member of Solutions for Society. He told the conference that the use of mobile phones to conduct such transactions “has enormous macroeconomic potential,” with implications for economic inclusion, as well as the efficiency of commerce.

Wendell Smith, Assistant General Manager, Management Information Systems and Operations, at Jamaica National Building Society (JNBS) said the introduction of the mobile phone as a payment point in the remittance business promises to be a major breakthrough.

With the near universal penetration of cellular phones, the use of cell phones as a payment point would provide a significant edge for its users, Mr. Smith said. He added that by removing fixed agent and branch locations from the remittance system, “the costs for both domestic and international remittances will be reduced.”