I have no doubt that there are many options out there and I may not have found them all YET! But this is what I know as of this article.

Local Bank route

You are likely able to set up a Merchant accounts with your local bank, the process for each will differ and the percentages, cost, and set-up timeframe may vary from bank to bank.

As the banking environment is ever-changing, I will not try to guide you through this process. I can tell you that we have done this for several clients and also for my own firm and the process is a bit of a pain in the butt! But, it does work.

The banking infrastructure in some Caribbean nations can be slow and complicated, making it challenging for businesses to establish merchant accounts with local banks. This can hinder the ability to process payments efficiently and may lead businesses to seek alternative solutions. Contact your local bank for more information.

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Wipay

WiPay is a Caribbean-based payment technology company founded in 2017 that specializes in electronic payments for businesses. Some key points about WiPay:

Overview

• WiPay was in Trinidad founded by Trinidadian businessman Aldwyn Wayne Jr., a graduate of Georgia Tech Institute.
• In September 2019, WiPay partnered with Mastercard, becoming the only licensed Payment Facilitator on both the Mastercard and Visa networks in the Caribbean region
• WiPay aims to solve challenges with digital payments and lack of financial inclusion in the Caribbean

Products and Services

• WiPay offers an online payment processing platform for Caribbean businesses.
• They provide a hosted payment page that redirects customers to enter credit card details securely.
• WiPay also offers a Rebel Visa Debit Card, Zwillo app for getting paid via email/social media, and a smart terminal for point-of-sale payments.

Expansion

• ‍‍As of 2022, WiPay is present in 19 countries including Jamaica, Trinidad, Barbados, St Lucia, Grenada, Haiti, Cayman, the US and Ghana.
• In October 2022, WiPay opened an office in Ghana, aiming to create a network to drive commerce and trade between the Caribbean and Africa using its payment platform.

Impact

• WiPay has been credited with providing a much-needed boost to the e-commerce industry in Trinidad & Tobago by offering affordable payment processing solutions.
• The company claims to have inspired the creation of other fintech startups in the Caribbean by demonstrating success in the region.

There is no cost to move money from WiPay Account to WiPay Account, rather there is only a fee to load money in to your WiPay account.

This fee is USD $1.00 plus a Credit Card fees are 3.8% +

Reference material:

1. https://en.wikipedia.org/wiki/WiPay
2. https://our.today/wipay-looking-to-transform-financial-services-in-the-caribbean/
3. https://www.forwardmultimedia.com/wipay-online-payment-processing/
4. https://wipaycaribbean.com/about-wipay
5. https://modmore.com/commerce/extensions/wipay/
6. https://trinidadexpress.com/business/local/wipay-opens-ghana-office/article_1ba59e7e-4345-11ed-8160-a70d78555e7e.html
7. https://wipaycaribbean.com
8. https://www.funraise.org/blog/how-to-ask-for-donations-by-text-email-wording-examples

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Paypal

Using PayPal to run an online business in Caribbean nations presents both opportunities and challenges. Here’s a summary of the effectiveness of PayPal for businesses in the region based on search results:

Opportunities with PayPal

1. Ease of Setup: PayPal is known for its user-friendly setup process. Caribbean businesses can create an account and start sending invoices or payment requests quickly, making it an attractive option for entrepreneurs looking to establish an online presence.

2. Global Reach: As one of the most recognized payment platforms worldwide, PayPal allows Caribbean businesses to reach international customers. This can be particularly beneficial for e-commerce businesses looking to expand their market beyond local borders.

3. Direct Payments: Recent developments indicate that Caribbean sellers can now accept direct credit and debit card payments through PayPal, which was previously a limitation. This change enhances the platform's usability for businesses in the region.

Challenges with PayPal

1. Currency Limitations: One significant drawback is that PayPal does not offer access to local currencies in many Caribbean nations. Businesses often need to convert their website currency to USD, which can complicate transactions for local customers who may prefer to pay in their native currency (e.g., Eastern Caribbean Dollars).

2. Withdrawal Issues: Many Caribbean users face difficulties when trying to withdraw funds from their PayPal accounts to local banks. PayPal accounts in the Caribbean often cannot be linked to local bank accounts for easy payouts, leading to potential issues with accessing funds accumulated in their accounts. However, there is a workaround for this that requires you to have both PayPal and Payoneer - more on that later.

3. Regulatory Concerns: Some Caribbean businesses have opted to use U.S. bank accounts and payment services to circumvent local limitations. However, this approach can lead to legal implications regarding tax obligations in both the U.S. and the Caribbean, making it a risky strategy for business owners.

Final note on PayPal

While PayPal offers a convenient and globally recognized payment solution for Caribbean businesses, the effectiveness of using the platform is hampered by currency limitations, withdrawal challenges, and regulatory concerns. For businesses in the Caribbean, it may be beneficial to explore alternative payment solutions alongside PayPal, such as local payment gateways like WiPay or First Atlantic Commerce, which are designed to cater to the specific needs of the region.

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Setting up a US Bank Account

Today the options to do this are endless, but note the warning above - 'legal implications regarding tax obligations in both the U.S. and the Caribbean'.

I came across a video that also has an associated Spreadsheet - video linked in the Spreadsheet.

https://docs.google.com/spreadsheets/d/1cEdktiA1MnFIy61TRvAKt3AxDBvEQX_PivEzcUADoRs/edit?pli=1&gid=0#gid=0

There are other options for this other than the big banks, fintech companies that offer users the ability to create accounts, receive monies a in some cases transfer your funds directly into your local bank account. Here are a few to look at, some of these are dependant on whether us are interested in the US, UK or other.

1. Wise (formerly TransferWise)

Wise is a digital-only currency exchange and money transfer platform that allows users to send money internationally at lower fees compared to traditional banks. It operates on a peer-to-peer model, facilitating transfers without the actual movement of money across borders. Wise has expanded its services to include multi-currency accounts and borderless banking, positioning itself as a challenger bank in the fintech space, focusing on transparency and cost-effectiveness in cross-border payments.

2. Revolut

Revolut is a fintech company offering a range of financial services through its mobile app. It provides users with multi-currency accounts, cryptocurrency trading, budgeting tools, and insurance products. Revolut aims to simplify banking by combining traditional banking features with modern technology, allowing users to manage their finances globally with low fees. It operates as a digital bank and has expanded its offerings to include personal loans and investment services, catering to both individual consumers and businesses.

3. N26

N26 is a mobile banking platform that operates primarily in Europe and the U.S. It offers a fully digital banking experience with features such as no-fee accounts, international money transfers, and budgeting tools. N26 focuses on providing a user-friendly interface and transparency in banking services, appealing to tech-savvy consumers looking for a modern alternative to traditional banks. The platform has gained popularity for its simplicity and efficiency in managing personal finances.

4. ???

I came across this one some time back, looked interesting but at the time, did not cover everything needed that I was interested in, more importantly, they did not cover the island of Saint Lucia for local bank payments.

Time has passed and things have changed. Saint Lucia is now on their list as well as the fact that the platform has matured allowing creators and freelancers to receive support and donations from their clients and or their audience.

You can now monetize your efforts through small contributions from your base. The platform facilitates membership subscriptions one-time payments.

Note: this is not the right platform if you are looking for a system where you can create invoices to send to your base!

Where can it be used?

🇦🇬 Antigua & Barbuda  
🇧🇸 Bahamas
🇩🇴 Dominican Republic
🇬🇾 Guyana  
🇯🇲 Jamaica  
🇱🇨 St. Lucia &
🇹🇹 Trinidad & Tobago

What is it you ask? For now I am going to keep this one close to the vest. Or, you can reach out to be if you are interested.

5. Payoneer

Payoneer is a cross-border payment platform that enables businesses and professionals to send and receive money globally. It is particularly popular among freelancers, e-commerce sellers, and businesses that operate internationally. Payoneer provides services such as multi-currency accounts, payment processing, and invoicing, making it easier for users to manage international transactions. The platform focuses on facilitating global commerce and financial inclusion for businesses of all sizes.

Important note: I have personally tried this one, works as promoted. However, I have read a number of horror stories about this entity.

My personal experience.

It is more or less straightforward to set up, KYC information will be required. I tested the platform and withdrew my test funds directly into my local Saint Lucia bank account. But, each time I look at expanding the usage, they raise the bar and the costs start to go up. Furthermore, since this was not setup on a running entity that was depositing funds into the platform regularly, it was left dormant for a while after the initial tests. When I finally decided to log back in and do some further tests, they for whatever reason updated my account password in essence logging me out of my funds. It took me a couple weeks before I was once again able to log back in. Thankfully, I had already withdrew what funds I had on the account so it was not a complete disaster.

I have read and reviewed a number of articles and videos both stating how great and how poor the platform is so I will leave you to decide for yourselves.
Here is some interesting reading: https://www.reddit.com/r/payoneer/

6. Zenus Bank

Zenus Bank is a digital bank that offers personal and business banking services, focusing on providing banking solutions for individuals and businesses in the U.S. and globally. It provides services such as multi-currency accounts and payment processing, catering to international clients and businesses seeking a digital banking experience.

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Setting up a US Business

Here are some places to get you started in your research for setting up a US LLC:

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The Best LLC Services of 2024

• LegalZoom: Best for growing teams
• ZenBusiness: Most flexible LLC packages
• Bizee: Best for à la carte add-ons
• Rocket Lawyer: Best for legal documents
• Active Filings: Best for international entrepreneurs
• Swyft Filings: Best for same-day filing
• Northwest Registered Agent: Best for multistate expansion
• BetterLegal: Best for compliance
• Filenow: Most transparent LLC package pricing
• Inc Authority: Best no-starter fee bundle

Check out where this info came from - https://www.forbes.com/advisor/business/best-llc-service/

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Ever changing

The US dictates what Caribbean bank can and can not do, however, we are a reasonably sized market and someone will look at the region and see the potential in us. The market is ever changing so keep your eye on the field, and your pulse on the market. Let me know if I missed anything, or if you have better options from what was listed above.

For all you'll Caribbean people out there, you have ties to the US so consider using those ties to your advantage if you are able - keep it legal my friend!