Building Societies Drive Record USD Settlements as Jamaica’s Payment System Approaches a Historic Year-End

• RTGS settled $32.86 trillion JMD through November, nearing full-year record
• Building societies handled 44% of USD RTGS settlements in November
• Debit card circulation reached 3,846,163, closing in on 3.9 million
• Monthly POS transactions reached $92.76 billion JMD in November alone
• Monthly ATM withdrawals reached $69.30 billion JMD in November
• Building society share of JMD RTGS held at 11.17% through eleven months

Jamaica’s payment system entered December 2024 with eleven months of data pointing to a record year: RTGS settlements exceeding $32 trillion JMD, debit cards approaching 3.9 million, and building societies emerging as a more prominent force in the country’s foreign-currency payment system than at any point previously documented.

The Bank of Jamaica’s Payment System Data Bulletin for November 2024 provides the penultimate chapter in what has been an exceptional year for Jamaica’s financial infrastructure. The data covers January through November 2024 and contains several findings that, taken in the context of the full year’s trajectory, carry implications well beyond the month’s headline figures.

Perhaps the most striking number in the November bulletin is building societies’ share of USD-denominated RTGS settlements: 44.04% of the $4.67 billion settled through the system in the eleven-month period. That compares to a share of approximately 22% that the sector has maintained consistently across much of the year in JMD activity. The elevated foreign-currency share may reflect year-end funding activity in the mortgage market, where building societies are primary players, or portfolio adjustments as institutions manage their balance sheets ahead of the December close. Whatever the specific driver, the figure represents a notable shift in the composition of Jamaica’s wholesale payment system.

Wholesale Settlements Through Eleven Months

The JAMCLEAR-RTGS system settled $32.86 trillion JMD through November 2024, with 3,877,257 transactions recorded across the eleven-month period. Merchant banks accounted for $25.65 trillion JMD (78.06%) of total settled value, while building societies contributed $3.67 trillion (11.17%). USD settlements reached $4.67 billion through November, with building societies’ $2.06 billion representing 44.04% of the foreign-currency total — a figure that reflects their role in financing USD-denominated mortgages, which are particularly common among diaspora purchasers and high-net-worth buyers in Jamaica’s prime property markets.

With December historically the busiest month of the year for both retail and wholesale payments — driven by Christmas spending, year-end corporate settlements, and bonus payments — the full-year RTGS total would likely exceed $34 trillion JMD and $5 billion USD. Those would represent the highest annual figures in the system’s recorded history, underscoring the pace at which Jamaica’s financial system has been scaling its operations.

Securities Markets: Active to Year-End

The JAMCLEAR-CSD processed $6.41 trillion JMD in securities transaction values through November 2024, with repos accounting for 61.81% of the total at $3.96 trillion JMD. Entitlements proceeds — distributions to bondholders — contributed $1.58 trillion (24.59%), reflecting the ongoing cycle of coupon and principal payments on Jamaica’s substantial domestic debt. USD securities values reached $1.74 billion through November, with repos accounting for 69.69% at $1.21 billion USD.

The dominance of repos in the CSD data is a consistent feature of Jamaica’s securities market. Financial institutions use repos to borrow short-term against the security of government bonds, creating a liquid market that allows them to manage daily liquidity needs efficiently. The depth of this repo activity — with $3.96 trillion JMD transacted through November — reflects the size and sophistication of Jamaica’s fixed-income market and the BOJ’s success in creating a functioning secondary market for government securities.

Retail Payments in November

In November 2024 specifically, POS transactions in JMD reached 7.25 million, worth $92.76 billion. USD POS activity contributed 255,620 transactions worth $45.17 million. These monthly figures are broadly consistent with the pace seen across the year and, with the December premium factored in, point to a full-year POS total comfortably above $1 trillion JMD — a milestone that, as noted in prior months’ data, would be a first for Jamaica’s payment system.

ATM withdrawals in November reached 4.10 million JMD transactions, valued at $69.30 billion — with USD ATM activity adding 92,210 withdrawals worth $24.22 million. POS terminals stood at 31,455 units across Jamaica, consistent with the 31,000-plus range maintained since the summer months. The terminal count suggests that after a period of rapid expansion earlier in the year, the network stabilised at a level where coverage is broad but further growth is targeted rather than systemic.

Card Growth: The Final Approach to 3.9 Million

JMD debit cards in circulation reached 3,846,163 by November 2024 — up from 3,811,845 in October and approximately 172,000 cards from the four-million threshold that has been visible on the horizon throughout the latter half of the year. Credit cards remained essentially flat at 430,569, while dual-currency cards edged up to 41,478. USD credit cards held at 25,199.

The steady monthly addition of roughly 30,000-35,000 debit cards has been one of the defining characteristics of Jamaica’s payment system in 2024, reflecting a banking sector that has continued to onboard new customers into formal financial services at a consistent pace throughout the year. For these new cardholders — many of whom may be entering the formal financial system for the first time — card access is typically the beginning of a broader relationship with banking services that may eventually include savings, insurance, credit, and mortgages.

The Building Society Signal

Building societies’ outsized role in November’s USD RTGS data deserves further consideration. Jamaica’s building societies — institutions that mobilise savings to fund mortgages and housing-related lending — are central to the country’s residential property market. Their activity in the payment system is a proxy for the health and pace of that market. When building societies are active in the RTGS, it typically means mortgages are being funded, properties are changing hands, and construction projects are receiving their finance tranches.

A 44% share of USD RTGS settlements through November is materially higher than the 22% share seen in the first half of the year. This shift may reflect increased activity in the USD-denominated mortgage segment, which typically serves diaspora buyers, higher-income purchasers, and commercial property transactions. It may also reflect year-end refinancing activity, as borrowers and institutions restructure their balance sheets before the calendar closes. Either way, it is a signal that Jamaica’s property financing market remained active through November 2024, despite the elevated interest rate environment that has characterised much of the past two years.

December: The Final Chapter

With December data yet to be released, the November bulletin sets the stage for what the Bank of Jamaica will ultimately report as a record year for Jamaica’s payment system. The trajectories across all major indicators — electronic volumes, RTGS values, card issuance, POS infrastructure — point consistently upward. The only question is by how much the December quarter adds to what is already the most active payment year in Jamaica’s documented financial history.

Follow Jamaica Homes on Youtube @jamaicahomes and Instagram @jamaica_homes and on Facebook @jamaicahomes Send us a message or email us at onlinefeedback@jamaica-homes.com or editor@jamaica-homes.com