Management Control Systems (MC Systems), a subsidiary of Jamaica National Building Society, has announced a new electronic payment device that will be circulated through local banks to small merchants.

Called MPAY2, the device can be attached to smartphones and tablets to enable payments by debit and credit card, reported Jamaica Gleaner.

The device, which is now compatible only with the Android operating system, transforms a mobile device into a POS terminal, enabling merchants and service providers to process card payments.

The complete launch of the product will be prefaced by a six-week pilot, which will include 50 vendors.

MC Systems is now testing the e-payment device with Verifone for the Caribbean.

MC Systems Deputy General Manager Dwane Russell said: "The pilot is just for us to get more market information in terms of the feedback from consumers.

He added that the company is currently in discussions with two banks for deployment of MPAY2.

"The merchants will have to sign up with the banks to accept both debit and credit card – that process remains the same. The only difference is that instead of you as the merchant getting a point of sale terminal, you will be given the sleeve and you can use your own cell phone or tablet. Everything is encrypted, so it is just as secure as a regular point-of-sale terminal," he said.

MPAY2 is mainly aimed to target small businesses and is described as chip card-ready featuring two slots to process chip and magnetic strip debit and credit cards, and may also come with a small bluetooth printer for receipting.