Dear Editor,
A system that’s failing everyone:
“Why are we forced to use expensive international services when we live on a tiny island?” This question, posted by a frustrated business owner on social media, sums up the challenges faced by many in St. Maarten. The payment system, rather than promoting growth, is a limiting factor.
Every card swipe comes with an invisible cost. Businesses are hit with high transaction fees they can’t control, and consumers ultimately pay the price through higher costs at checkout. Whether you’re buying groceries or paying for services, these fees are a burden in an already expensive economy.
The issue gets more complicated when you realize that even local payments are often routed through international networks like Visa and Mastercard, which charge fees of up to 4% per transaction. While cross-border transactions justify higher fees, it’s hard to understand why payments that stay on the island are still subject to international charges. For small businesses with razor-thin margins, these fees eat into profits, forcing some to set minimum purchase amounts for card payments or even stop accepting cards altogether.
The St. Maarten Bankers Association and the Ministry of Finance have labeled minimum purchase amounts as policy violations. But can we really blame merchants? It’s complicated. Some businesses are left with no choice but to pass those costs onto consumers, while others may see an opportunity to profit. And for families already struggling to make ends meet, every extra charge feels like a punishment for simply trying to live in a modern economy.
Recently, the National Payment Council (NPC) and the Central Bank of Curaçao and St. Maarten (CBCS) announced plans to modernize St. Maarten’s payment system. They’ve talked about introducing instant payment technologies and fintech solutions that would lower transaction costs.
Sounds promising, right? But here’s the catch: there’s no clear timeline. The NPC hinted that some progress might come in 2025, but businesses and consumers need relief now, not years from now. And let’s be honest – we’ve seen this play out before:
* In Curaçao, the transition to Visa and Mastercard was supposed to improve security but ended up increasing costs for businesses.
* In Barbados, moving to international payment networks made online transactions easier but left small businesses struggling with higher fees.
If we don’t act quickly, St. Maarten could follow the same path – modernizing at the expense of the people.
What happened to SEN?
In June 2023, the Ministry of Finance partnered with CX Pay to launch the SEN Payment App, a local e#wallet that aimed to reduce transaction fees and provide a digital payment solution for both the banked and unbanked communities.
The app was beta-launched with great fanfare in October 2023 at the government building, where the Ministry of Finance hosted an onboarding session to familiarize citizens with the platform. But since then, it’s gone silent – a ghost project with no updates or progress reports. Was this another initiative that lost momentum after two elections? Continuity has always been a challenge in St. Maarten’s government.
But here’s the thing: the idea behind SEN was sound. A local e-wallet could have been a game changer, offering small businesses and consumers a low cost alternative to traditional banking. Sadly, it became yet another missed opportunity, hindered by a lack of proper follow-through and accountability.
What locals are fed up with
Scrolling through Facebook, the frustrations are clear: “Why do banks block my card when I try to shop online?” “Why does accessing my own money feel like rocket science?” These questions reflect a growing distrust in the local banking system. People are turning to U.S. accounts and international platforms like Wise and Revolut, bypassing local banks entirely. That’s money leaving St. Maarten’s economy – money that could be helping the country grow.
Without immediate reforms, small businesses will continue to struggle, and consumers will keep paying the price. Action is needed now to keep money circulating within St. Maarten’s economy.
Want change? Here’s where to start:
1️. Cap fees immediately
Introduce a temporary cap on transaction fees between 1.5% and 2%, a range aligned with global best practices. The European Union caps credit card fees at 0.3% and debit card fees at 0.2% under the Interchange Fee Regulation. While St. Maarten’s banking landscape differs, a reasonable cap would ensure banks cover their costs without overburdening businesses and consumers. No one expects banks to operate at a loss, but it’s unclear how much of these fees are needed for costs versus profit. A cap would offer immediate relief while the NPC works on sustainable, long-term reforms.
2️. Support small businesses
Help small businesses adopt modern payment systems by offering tax breaks or subsidies. These programs have worked in other Caribbean countries, easing financial burdens while increasing digital adoption.
3️. Relaunch SEN with accountability
The SEN app had the potential to lower transaction costs and promote financial inclusion. However, it stalled due to lack of follow-through. Reviving the app – this time with proper oversight, a clear roadmap, and private sector support – could provide a low-cost, local e-wallet solution that benefits both the banked and unbanked populations.
4. Increase transparency
The lack of clear, published fee structures creates distrust between banks, businesses, and consumers. Requiring banks and payment processors to disclose all fees and charges in simple terms would help rebuild trust and accountability.
The bottom line: Stop talking. Start building.
We’ve heard the promises. We’ve seen the ideas. But people can’t pay their bills with empty words. The solutions are already out there – discussed in meetings, highlighted in reports, and echoed across social media. Now is the time for action. St. Maarten must decide: build a payment system that serves the people, or keep forcing them to find workarounds.. An economy can’t thrive when its foundation is broken.
Angelique Remy-Chittick
Financial Strategist and Consultant
Financial.ish
