Digital wallets to boost SMEs
The digital revolution — the rise of the Internet and social media — has undoubtedly changed the business landscape. Forty years ago business owners considered having a physical location for their businesses the hallmark of success, but now hundreds of successful businesses exist solely online. There are no physical locations for customers to walk into, no office space for employees to work from, and transactions are done through websites or direct messages on social media.
Before the novel coronavirus pandemic, people dreaded standing in lines all day to conduct business or walking around dozens of stores to find what they wanted. During the pandemic, customers flocked to the online option for many things for convenience, safety, and overall ease.
Statista.com reported that in 2021, 46 per cent of people spent at least six hours daily on the Internet and mobile apps. That’s six hours a day scrolling, looking things up, communicating, making connections and conducting transactions. The pandemic accelerated many companies’ digital transformation, particularly small and medium-sized enterprises (SMEs), forcing them to meet customers where they are.
The Government of Jamaica’s announcement that it will be launching a central bank digital currency (CBDC), JAM-DEX, was met with a lot of positive feedback as it represented Jamaica’s push towards digital innovation. JAM-DEX is a digital-only version of the country’s currency and is considered legal tender exchanged at a 1:1 exchange rate with regular banknotes and coins. To use JAM-DEX, customers will need a digital wallet, which is just like a regular wallet but only on mobile devices.
Currently, Lynk is the only JAM-DEX approved digital wallet in Jamaica. Both Lynk and JAM-DEX offer business owners greater access to existing and potential customers and present many opportunities for businesses to grow. Both pieces of tech allow SMEs to stay ahead of other companies in their market by offering innovative payment solutions. JAM-DEX is also a cheap alternative to cash and cards and will be more economical for businesses to accept and process. Additionally, because of the greater inclusivity and ease of access that comes with both JAM-DEX and Lynk, companies will be able to reach a broader customer base.
Lynk will also provide SMEs with tools to boost their reach and engagement with customers. Businesses will have the ability to develop, launch and control loyalty programmes through the wallet, a free to download app on iOS and Android systems.
SMEs can also launch customised options to provide their customers with the best experiences, whether in person or online. Another plus for CBDC and digital wallets is that they allow for real-time settlements, meaning that merchants will receive payments instantly, even if the customer is not connected to WiFi or Internet data. They are also a paperless option.
Security is also one of the most significant barriers overcome with digital wallets and currency. They decrease the need to carry around physical cash or debit/credit cards, decreasing the risk of forgetting it at any physical location and robbery.
Most devices come with a biometric lock and multiple-step authentication, so the app and money are still secured if the device is lost. Additionally, like most digital wallets, Lynk uses biometrics like fingerprint identification and face identification to verify users before giving access to accounts and funds.
The way people do business has evolved tremendously over the last few years. As technology advances, business owners, especially SMEs aiming to offer their customers the most innovative service, can join the digital revolution with digital currency.