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MCONEC hunts new partner for fintech venture

Published:Wednesday | February 28, 2018 | 12:00 AM
Kavin Hewitt, managing director of MCONEC Payment Solutions.

Payment solutions and technology company MCONEC Mobile Payment Services is close to wrapping up a new partnership agreement for the roll-out of its suite of services in Jamaica and the region, according to Managing Director Kavin Hewitt.

It follows the exit of Jamaica Co-operative Credit Union League, JCCUL, from the mobile money market and discontinuation of the mobile wallet for which MCONEC provided software services under licence.

Hewitt previously led the Caribbean operations of Mozido LLC, which initially partnered with JCCUL in 2013 to launch the first e-payment service in Jamaica, called JCUES. That product was later relaunched as mobile wallet Conec.

Mozido's interest in the Caribbean was bought out by MCONEC nearly two years ago, and Hewitt migrated to the latter company as its new head. He said that while MCONEC operates from Kingston, it is registered in the Caribbean as an international business company by partners who are based overseas. He declined to identify the owners.

"Initially, with Mozido it was a strategic partnership [with JCCUL], where Mozido owned the technology and the credit unions owned the business. The league was supposed to deliver the customer base and revenue. Upon expiry of agreement with the credit union in April 2016, MCONEC took over the reins. Then the agreement became just a licence," Hewitt said in explanation of the evolution of the business relationship with JCCUL.

The league exited the market in late 2017, citing slow take-up of the mobile money product.

Hewitt declined to disclose the details of the transaction between Mozido and MCONEC, but otherwise noted that between the two companies, their cumulative investment in product development for the Jamaican market was "just north of US$12 million".

Now, he says MCONEC is aiming for a new partner with the necessary capital for not only local, but regional market penetration.

"One, we are looking for a partner that is properly capitalised and who is also a strategic fit, not just from the standpoint of mobile money, because the MCONEC platform is much more than mobile money; it is a business suite of services that can do many things in addition to mobile financial services and mobile money," Hewitt said.

The company's suite of products, according to its website, include a rewards programme; person-to-person and business-to-business wallet payment services; remittances; and mobile engagement, involving 'push' advertising that sends offers directly to customers' mobile phones.

"So, we are looking for a company that can benefit from various aspects of the platform from a strategic perspective, in addition to the mobile wallet, which we believe is still something of incredible value and will catch on. We are looking also for a partner that can go regional with us, at least in the Caribbean to begin with," he said.

Hewitt said that discussions are under way with interested companies and that MCONEC is shooting for a definitive agreement by early in the second quarter.

The company will need Bank of Jamaica approval for its payment solutions.

"But, we are of the view that we are using similar technology. From that aspect, it has been approved and in operation for five years. So, we do not foresee too much rigour in terms of the technological assessment from the central bank. But, you know, the central bank will have to do what it is that the central bank has to do," said the MCONEC head.

The mobile money market in Jamaica currently comprises two players: Quisk from National Commercial Bank, and GK-MPay from GraceKennedy.

avia.collinder@gleanerjm.com