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Trinidad and Tobago Takes Leap Towards Cashless Society

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In a bold move towards promoting financial inclusion and reducing crime, Trinidad and Tobago has made significant strides in modernizing its digital payment landscape.

Progressive Policy Environment

The country’s progressive policy environment and robust mobile and internet infrastructure have enabled widespread access to the internet, with 85% of the population now online. The government’s commitment to digital finance is evident in recent efforts to improve financial inclusion, stimulate FinTech innovation, and reduce corruption.

Regulatory Reforms

Key regulatory reforms have been implemented, including:

  • Draft E-Money Policy (2018)
  • FinTech Policy (2019)
  • E-Money Issuer Order (2020)
  • Simplified Due Diligence Requirements (2021)

These measures have created a more favorable environment for digital financial services, enabling the country to move closer towards a cashless society.

Regulatory Innovation Hub

The establishment of a Regulatory Innovation Hub has facilitated progress in licensing emerging technologies, particularly E-Money Issuers. This hub accelerates financial inclusion exponentially and plays a crucial role in driving this transition.

“One FinTech Avenue” Initiative

The TTIFC has launched the “One FinTech Avenue” initiative, aimed at empowering FinTech companies to develop, test, and scale innovative solutions that promote economic growth and inclusion. The UNCDF was proud to launch the EU-UNCDF Caribbean FinTech Sprint for Financial Inclusion with the TTIFC this year.

Public Sector Embracing Cashless Transactions

The country’s public sector has begun to embrace cashless transactions through various methods, including:

  • Bank transfers
  • Credit/debit cards
  • Automated Clearing House (ACH)
  • Real Time Gross Settlement (RTGS)

Licensed E-Money Issuers

Three e-money issuers have been licensed, and the government is working to streamline revenue realization and cash balance recognition to make financial services more affordable.

Opportunities for Strengthening Enabling Environment

To further strengthen the enabling environment for inclusive digital finance, the UNCDF has identified opportunities for Trinidad and Tobago to:

  • Build on progress made through the FinTech Policy (2019) and E-Money Policy (2018): add flexibilities for innovation in digital wallets using risk-based approaches.
  • Designate a Secretariat: draft digital finance strategies, coordinate the agenda, and support research and analysis.
  • Facilitate open payment systems and infrastructures: increase efficiency of payment transactions and lower transaction costs.
  • Review financial consumer protection framework: identify risks posed by emerging digital finance business models.

By establishing relevant strategies, building adequate data infrastructures, and strengthening stakeholder engagement, Trinidad and Tobago is poised to foster cooperation, boost its economy, and improve access to digital financial services for everyone.