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How money moves

How money moves in Jordan

Written by

George Davis

on

Sep 20, 2023

/

How money moves

How money moves in Jordan

Written by

George Davis

on

Sep 20, 2023

/

How money moves

How money moves in Jordan

Written by

George Davis

on

Dec 13, 2023

How money moves: Jordan
How money moves: Jordan
How money moves: Jordan

The short version

Situated at the meeting point of Asia, Africa and Europe, Jordan offers international businesses and payment companies a bridge into the rest of MENA. Its highly urbanised, young population coupled with a significant diaspora around the globe, encourages innovation for local payment. A forward-looking government and Central Bank support, provide a platform for the local fintech community to create world-class payment solutions for Jordan.


The long version

The Hashemite Kingdom of Jordan (Arabic: الأردن ) inherits its name from the Jordan River which runs along the country’s Northwestern border today. Neighbouring Egypt, Israel, Lebanon and the Kingdom of Saudi Arabia (KSA), Jordan is neatly situated at the intersection of Asia, Africa and Europe. The importance of the country’s location attracts businesses looking to expand on a global scale, which is supported by modern infrastructure and a stable political system. In addition, there are a host of Free Trade Agreements (FTA) which have been implemented including the US- Jordan FTA, Greater Arab FTA (GAFTA) , the European Free Trade Association, Aghadir Agreement bilateral agreements with Canada and Singapore to drive commerce.

Jordan is home to one of the Seven Wonders of the World, Petra, commonly referred to as the ‘the Rose City’ due to its intricate red-coloured stone carvings. Tourism is a major revenue source with the total market estimated at $326.40 million for 2023 and a steady annual growth rate of 7.67% - a significant economic driver of 14.6% of the gross domestic product (GDP), plus employing an estimated 57 000 people. The Jordanian population size is reported to be 11.3 million with the median age at 24 years - with a sweeping majority of Jordanians being urbanised at 85%. Reviewing population growth, the country has witnessed a boom over the past two decades as the population has more than doubled in that time period. Since 1995, the Jordanian Dinar (JOD) has been pegged to the US Dollar, sitting at a fixed exchange rate at 0.709 JOD for 1 US Dollar. Given its high value, the JOD has been ranked as the globe’s fourth strongest currency. Through a payments lens, the young, growing population, thriving tourism industry - attracting sophisticated, international customers- coupled with the favourable stable currency highlight the strategic importance of Jordan. 

We saw 2022 close on a positive note as Jordan’s GDP achieved a growth rate of 2.5% to  $47.45 billion. Further economic stimulation is planned with key international partnership between the United Arab Emirates (UAE), Egypt, Bahrain and Jordan through the industrial agreement - Industrial Partnership for Sustainable Economic Development - with an associated  investment above $2 billion, boosting respective GDPs and creating approximately 13 000 jobs. Looking towards the future, Jordan’s Vision 2025 aims to consciously stimulate the country’s economic growth from 6.5% in 2021 to 7.5% by 2025 through government actions to boost foreign investment.

Earlier this year, the FINTECH Summit Middle East was hosted in Amman for local entrepreneurs, business accelerators, fintechs and public organisations. It shed light on “the new order for Fintech, Digital Payments and Banking” to inspire conversation and collaboration around payment innovation, SME digital payment solutions and the role of AI. The summit was held with the backdrop of the CBJ’s ‘financial technology and innovation vision’ which aims to expand opportunities for fintech and innovation to positively impact the local economy. Interestingly, Jordan is home to some of the world’s top information and communication technology (ICT) talent which further propels the push to support these tech-led entrepreneurs.

Shifting the focus towards remittances, Jordan is a distinctive market in MENA, due to its significant diaspora (10.5% of the population) predominantly across the Middle East and the West. At the close of 2022, Jordanian expat remittances rose by 1.5% to total $3.45 billion based on Central Bank of Jordan (CBJ) data. This equates to 9.7% of the GDP and makes Jordan the 4th largest remittance market in MENA. The size of the remittance market has a direct impact on the demand for digital transactions in Jordan with projected total value of transactions to reach $83.37 million in 2023. With government development and a growing customer base for digital payment services, we see the entry of new players in the payment market to capitalise on the demand.

Similar to the Kuwaiti market, Covid created a strong wave of digital payment adoption in Jordan. Where once cash was king, the country saw a changing tide towards online payments moving away from the high-contact traditional cash payment. Strong internet and smartphone adoption at 88% and 76% respectively support the digital transformation. A well-developed banking system, with more than 26 banks operating locally enables the infrastructure demands of digital payments. 

  • Mobile payments are a popular transaction method where many payment service providers are jumping on the bandwagon to offer. The use of Dinarak’s mobile wallet app saw a massive increase from 300,000 customers pre-Covid to over 1 million today. Small businesses, such as barbers and small grocers, are now offering payment through QR codes, which previously was cash-only. 

  • The CBJ launched JoMoPay, a popular instant mobile payment service which enables small value transactions between mobile wallets and bank accounts. A monthly report from June revealed 1.96 million JoMoPay users and 2.07 million transactions valued at 249 million JOD. JoMoPay  Other JoMoPay services include point of sale payments, ATM cash-in / cash-out, QR code payments and cross-border remittances. 

  • eFAWATEERcom is an Electronic Bill Presentment and Payment (EBPP) service. The service is supervised by CBJ and operated by Madfooatcom. Mobile payment services providers are all conveniently integrated with eFAWATEERcom, therefore account holders can settle their bills using mobile wallets. In the latest monthly report, eFAWATEERcom had 3.8 million registered users in June who made 3.65 million transactions valued at 750 million JOD. 

  • Launched in 2020, CliQ is Jordan’s latest Instant Payment System which helps customers send and receive funds between bank accounts as well as mobile wallets instantly. The service has shown tremendous growth in the past three years with a 700.6% rise in transactions. In June this year, it was reported that there were 810 000 monthly users, 2.3 million transactions valued at 399 million JOD where 90% were money transfers and 10% were purchases.

From a regulatory perspective, key Central Bank licences are governed by the Electronic Payment and Money Transfer Bylaw No. (111) of 2017 and in the Electronic Transactions Law No. 15 of 2015, giving companies the ability to operate electronic payment systems in compliance with the CBJ requirements. In addition, the CBJ’s Instructions for Electronic Banking Operations, Payment Systems, and Electronic Payment Services No. (23) in 2017 is one of the major fintech legal frameworks, providing oversight for various services including activities of payment service providers (PSPs). Similar to Kuwait, Egypt and KSA, CBJ established a regulatory sandbox for fintechs to test their products and services in a safe environment to encourage innovation. 

The new era of payments has arrived in Jordan. The country's strong appetite for digital transformation makes it an interesting market for payment companies. If your business is looking to Jordan in its expansion plan, reach out to us to support you on the journey to live.

The Hashemite Kingdom of Jordan (Arabic: الأردن ) inherits its name from the Jordan River which runs along the country’s Northwestern border today. Neighbouring Egypt, Israel, Lebanon and the Kingdom of Saudi Arabia (KSA), Jordan is neatly situated at the intersection of Asia, Africa and Europe. The importance of the country’s location attracts businesses looking to expand on a global scale, which is supported by modern infrastructure and a stable political system. In addition, there are a host of Free Trade Agreements (FTA) which have been implemented including the US- Jordan FTA, Greater Arab FTA (GAFTA) , the European Free Trade Association, Aghadir Agreement bilateral agreements with Canada and Singapore to drive commerce.

Jordan is home to one of the Seven Wonders of the World, Petra, commonly referred to as the ‘the Rose City’ due to its intricate red-coloured stone carvings. Tourism is a major revenue source with the total market estimated at $326.40 million for 2023 and a steady annual growth rate of 7.67% - a significant economic driver of 14.6% of the gross domestic product (GDP), plus employing an estimated 57 000 people. The Jordanian population size is reported to be 11.3 million with the median age at 24 years - with a sweeping majority of Jordanians being urbanised at 85%. Reviewing population growth, the country has witnessed a boom over the past two decades as the population has more than doubled in that time period. Since 1995, the Jordanian Dinar (JOD) has been pegged to the US Dollar, sitting at a fixed exchange rate at 0.709 JOD for 1 US Dollar. Given its high value, the JOD has been ranked as the globe’s fourth strongest currency. Through a payments lens, the young, growing population, thriving tourism industry - attracting sophisticated, international customers- coupled with the favourable stable currency highlight the strategic importance of Jordan. 

We saw 2022 close on a positive note as Jordan’s GDP achieved a growth rate of 2.5% to  $47.45 billion. Further economic stimulation is planned with key international partnership between the United Arab Emirates (UAE), Egypt, Bahrain and Jordan through the industrial agreement - Industrial Partnership for Sustainable Economic Development - with an associated  investment above $2 billion, boosting respective GDPs and creating approximately 13 000 jobs. Looking towards the future, Jordan’s Vision 2025 aims to consciously stimulate the country’s economic growth from 6.5% in 2021 to 7.5% by 2025 through government actions to boost foreign investment.

Earlier this year, the FINTECH Summit Middle East was hosted in Amman for local entrepreneurs, business accelerators, fintechs and public organisations. It shed light on “the new order for Fintech, Digital Payments and Banking” to inspire conversation and collaboration around payment innovation, SME digital payment solutions and the role of AI. The summit was held with the backdrop of the CBJ’s ‘financial technology and innovation vision’ which aims to expand opportunities for fintech and innovation to positively impact the local economy. Interestingly, Jordan is home to some of the world’s top information and communication technology (ICT) talent which further propels the push to support these tech-led entrepreneurs.

Shifting the focus towards remittances, Jordan is a distinctive market in MENA, due to its significant diaspora (10.5% of the population) predominantly across the Middle East and the West. At the close of 2022, Jordanian expat remittances rose by 1.5% to total $3.45 billion based on Central Bank of Jordan (CBJ) data. This equates to 9.7% of the GDP and makes Jordan the 4th largest remittance market in MENA. The size of the remittance market has a direct impact on the demand for digital transactions in Jordan with projected total value of transactions to reach $83.37 million in 2023. With government development and a growing customer base for digital payment services, we see the entry of new players in the payment market to capitalise on the demand.

Similar to the Kuwaiti market, Covid created a strong wave of digital payment adoption in Jordan. Where once cash was king, the country saw a changing tide towards online payments moving away from the high-contact traditional cash payment. Strong internet and smartphone adoption at 88% and 76% respectively support the digital transformation. A well-developed banking system, with more than 26 banks operating locally enables the infrastructure demands of digital payments. 

  • Mobile payments are a popular transaction method where many payment service providers are jumping on the bandwagon to offer. The use of Dinarak’s mobile wallet app saw a massive increase from 300,000 customers pre-Covid to over 1 million today. Small businesses, such as barbers and small grocers, are now offering payment through QR codes, which previously was cash-only. 

  • The CBJ launched JoMoPay, a popular instant mobile payment service which enables small value transactions between mobile wallets and bank accounts. A monthly report from June revealed 1.96 million JoMoPay users and 2.07 million transactions valued at 249 million JOD. JoMoPay  Other JoMoPay services include point of sale payments, ATM cash-in / cash-out, QR code payments and cross-border remittances. 

  • eFAWATEERcom is an Electronic Bill Presentment and Payment (EBPP) service. The service is supervised by CBJ and operated by Madfooatcom. Mobile payment services providers are all conveniently integrated with eFAWATEERcom, therefore account holders can settle their bills using mobile wallets. In the latest monthly report, eFAWATEERcom had 3.8 million registered users in June who made 3.65 million transactions valued at 750 million JOD. 

  • Launched in 2020, CliQ is Jordan’s latest Instant Payment System which helps customers send and receive funds between bank accounts as well as mobile wallets instantly. The service has shown tremendous growth in the past three years with a 700.6% rise in transactions. In June this year, it was reported that there were 810 000 monthly users, 2.3 million transactions valued at 399 million JOD where 90% were money transfers and 10% were purchases.

From a regulatory perspective, key Central Bank licences are governed by the Electronic Payment and Money Transfer Bylaw No. (111) of 2017 and in the Electronic Transactions Law No. 15 of 2015, giving companies the ability to operate electronic payment systems in compliance with the CBJ requirements. In addition, the CBJ’s Instructions for Electronic Banking Operations, Payment Systems, and Electronic Payment Services No. (23) in 2017 is one of the major fintech legal frameworks, providing oversight for various services including activities of payment service providers (PSPs). Similar to Kuwait, Egypt and KSA, CBJ established a regulatory sandbox for fintechs to test their products and services in a safe environment to encourage innovation. 

The new era of payments has arrived in Jordan. The country's strong appetite for digital transformation makes it an interesting market for payment companies. If your business is looking to Jordan in its expansion plan, reach out to us to support you on the journey to live.

The Hashemite Kingdom of Jordan (Arabic: الأردن ) inherits its name from the Jordan River which runs along the country’s Northwestern border today. Neighbouring Egypt, Israel, Lebanon and the Kingdom of Saudi Arabia (KSA), Jordan is neatly situated at the intersection of Asia, Africa and Europe. The importance of the country’s location attracts businesses looking to expand on a global scale, which is supported by modern infrastructure and a stable political system. In addition, there are a host of Free Trade Agreements (FTA) which have been implemented including the US- Jordan FTA, Greater Arab FTA (GAFTA) , the European Free Trade Association, Aghadir Agreement bilateral agreements with Canada and Singapore to drive commerce.

Jordan is home to one of the Seven Wonders of the World, Petra, commonly referred to as the ‘the Rose City’ due to its intricate red-coloured stone carvings. Tourism is a major revenue source with the total market estimated at $326.40 million for 2023 and a steady annual growth rate of 7.67% - a significant economic driver of 14.6% of the gross domestic product (GDP), plus employing an estimated 57 000 people. The Jordanian population size is reported to be 11.3 million with the median age at 24 years - with a sweeping majority of Jordanians being urbanised at 85%. Reviewing population growth, the country has witnessed a boom over the past two decades as the population has more than doubled in that time period. Since 1995, the Jordanian Dinar (JOD) has been pegged to the US Dollar, sitting at a fixed exchange rate at 0.709 JOD for 1 US Dollar. Given its high value, the JOD has been ranked as the globe’s fourth strongest currency. Through a payments lens, the young, growing population, thriving tourism industry - attracting sophisticated, international customers- coupled with the favourable stable currency highlight the strategic importance of Jordan. 

We saw 2022 close on a positive note as Jordan’s GDP achieved a growth rate of 2.5% to  $47.45 billion. Further economic stimulation is planned with key international partnership between the United Arab Emirates (UAE), Egypt, Bahrain and Jordan through the industrial agreement - Industrial Partnership for Sustainable Economic Development - with an associated  investment above $2 billion, boosting respective GDPs and creating approximately 13 000 jobs. Looking towards the future, Jordan’s Vision 2025 aims to consciously stimulate the country’s economic growth from 6.5% in 2021 to 7.5% by 2025 through government actions to boost foreign investment.

Earlier this year, the FINTECH Summit Middle East was hosted in Amman for local entrepreneurs, business accelerators, fintechs and public organisations. It shed light on “the new order for Fintech, Digital Payments and Banking” to inspire conversation and collaboration around payment innovation, SME digital payment solutions and the role of AI. The summit was held with the backdrop of the CBJ’s ‘financial technology and innovation vision’ which aims to expand opportunities for fintech and innovation to positively impact the local economy. Interestingly, Jordan is home to some of the world’s top information and communication technology (ICT) talent which further propels the push to support these tech-led entrepreneurs.

Shifting the focus towards remittances, Jordan is a distinctive market in MENA, due to its significant diaspora (10.5% of the population) predominantly across the Middle East and the West. At the close of 2022, Jordanian expat remittances rose by 1.5% to total $3.45 billion based on Central Bank of Jordan (CBJ) data. This equates to 9.7% of the GDP and makes Jordan the 4th largest remittance market in MENA. The size of the remittance market has a direct impact on the demand for digital transactions in Jordan with projected total value of transactions to reach $83.37 million in 2023. With government development and a growing customer base for digital payment services, we see the entry of new players in the payment market to capitalise on the demand.

Similar to the Kuwaiti market, Covid created a strong wave of digital payment adoption in Jordan. Where once cash was king, the country saw a changing tide towards online payments moving away from the high-contact traditional cash payment. Strong internet and smartphone adoption at 88% and 76% respectively support the digital transformation. A well-developed banking system, with more than 26 banks operating locally enables the infrastructure demands of digital payments. 

  • Mobile payments are a popular transaction method where many payment service providers are jumping on the bandwagon to offer. The use of Dinarak’s mobile wallet app saw a massive increase from 300,000 customers pre-Covid to over 1 million today. Small businesses, such as barbers and small grocers, are now offering payment through QR codes, which previously was cash-only. 

  • The CBJ launched JoMoPay, a popular instant mobile payment service which enables small value transactions between mobile wallets and bank accounts. A monthly report from June revealed 1.96 million JoMoPay users and 2.07 million transactions valued at 249 million JOD. JoMoPay  Other JoMoPay services include point of sale payments, ATM cash-in / cash-out, QR code payments and cross-border remittances. 

  • eFAWATEERcom is an Electronic Bill Presentment and Payment (EBPP) service. The service is supervised by CBJ and operated by Madfooatcom. Mobile payment services providers are all conveniently integrated with eFAWATEERcom, therefore account holders can settle their bills using mobile wallets. In the latest monthly report, eFAWATEERcom had 3.8 million registered users in June who made 3.65 million transactions valued at 750 million JOD. 

  • Launched in 2020, CliQ is Jordan’s latest Instant Payment System which helps customers send and receive funds between bank accounts as well as mobile wallets instantly. The service has shown tremendous growth in the past three years with a 700.6% rise in transactions. In June this year, it was reported that there were 810 000 monthly users, 2.3 million transactions valued at 399 million JOD where 90% were money transfers and 10% were purchases.

From a regulatory perspective, key Central Bank licences are governed by the Electronic Payment and Money Transfer Bylaw No. (111) of 2017 and in the Electronic Transactions Law No. 15 of 2015, giving companies the ability to operate electronic payment systems in compliance with the CBJ requirements. In addition, the CBJ’s Instructions for Electronic Banking Operations, Payment Systems, and Electronic Payment Services No. (23) in 2017 is one of the major fintech legal frameworks, providing oversight for various services including activities of payment service providers (PSPs). Similar to Kuwait, Egypt and KSA, CBJ established a regulatory sandbox for fintechs to test their products and services in a safe environment to encourage innovation. 

The new era of payments has arrived in Jordan. The country's strong appetite for digital transformation makes it an interesting market for payment companies. If your business is looking to Jordan in its expansion plan, reach out to us to support you on the journey to live.

George Davis, Fuse Co-Founder & CEO
George Davis, Fuse Co-Founder & CEO

George Davis

, Co-Founder & CEO

at Fuse

George Davis

, Co-Founder & CEO

Co-Founder & CEO

at Fuse

Fuse

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