Japanese shipowning giant NYK has formed a new joint venture to introduce an app that will do away with cash for seafarers.
It has teamed up with Philippines-based Transnational Diversified Group (TDG) to launch electronic money platform MarCoPay, based in Manila and owned on a 50/50 basis.
The "highly-secure platform" aims to enhance the lives of seafarers and their families, NYK said.
The system is scheduled to launch in January 2020, with the help of Accenture and Citi.
At the moment, it is designed mainly for seafarers hired outside Japan to make digital settlements and withdraw cash on a smartphone.
By using MarCoPay to receive their salaries and purchase daily supplies on ships, crew members can go cashless on board and send money to their home countries and withdraw cash from ATMs anywhere in the world, NYK added.
Last year, the shipowner estimated that total cash on company ships around the world amounts to about $800m a year, and costs related to handling are very high.
Boost for seafarer status
"While foreign seafarers generally earn more than the average population in their home countries, they’re often not fully recognized and valued socially and economically," it said.
"MarCoPay aims to contribute to an environment in which they can obtain further favourable conditions for bank loans and insurance coverage with this new electronic money platform."
The venture will eventually expand its network to third-party owners and managers, while continuing to add new functions.
NYK believes MarCoPay will transform into a "global platform which will support the lives of seafarers and their families around the world."
This year, Tsakos Columbia Management phased out cash payments to crew by masters.
ShipMoney rolled out an electronic payment solution on 90 ships, including tankers, boxships and bulkers, following a trial.
NYK partner TDG comprises more than forty companies, primarily in logistics and shipmanagement.
