Susan Gordon, Business Reporter

A cardholder uses a debit card machine at a Kingston automated teller machine on the MultiLink system. MultiLink operators are expecting cash withdrawals to climb in December, the month in which consumers spend the largest amounts of cash. - File

The nominal value of Jamaica's debit card transactions during the month of December has almost tripled over a five-year span, based on data gleaned from J.E.T.S., operators of the MultiLink debit network.

Now, general manager for MultiLink, Edmundo Jenez, is projecting a 26 per cent increase in wthdrawals, and has concluded that consumer spending will likely rise by a similar percentage.

Jenez says that money flows via the MultiLink system are expected to reach $6.597 billion through automated bank machines (ABMs) and Point of Sales (POS) machines.

Increased spending

He anticipates an 11.5 per cent increase in the number of withdrawals during December and says that the number of cardholders using POS for on spot Christmas shopping will likely increase at a higher rate than those using ABMs.

With MultiLink transactions averaging $3,000 to $4,000 per withdrawal, Jenez based his projections on the three factors: cardholders having greater access to cash, the reliability of the J.E.T.S network and inflation.

"We have seen a gradual ramping up towards the Christmas season," he told Wednesday Business, reflecting on the spending pattern in the business shopping season of the year.

"Before it was a sharp increase; now it starts from October," he added, advising that Christmas Eve, or the Friday and Saturday before Christmas Day, would be the days of heaviest withdrawals based on past trends.

Active cardholders

The company which last week celebrated its 10th anniversary, boasts a client base of 325,000 active cardholders per month it has about 600,000 on record.

These 325,000 active cardholders to whom Multilink dispenses $4.5 billion on a monthly basis are expected to climb to 345,000 in December.

In year 2003, MultiLink which allows its eight corporate customers - mainly banks - to share their issued cards with other systems, registered $2.356 billion in withdrawals for the December period. In 2004, this moved to $3.081billion; climbed to $4.005 billion in 2005, and $5.208 in 2006.

ABM transactions in all cases contributed to the larger portion of withdrawals.

The $799 million of POS transactions recorded in December of 2003 rose to $1.978 in 2006 and is expected to reach $2.71 billion this December.

susan.gordon@gleanerjm.com