• Digital financial services
Dec 14, 2016

The Central Bank of Jordan (CBJ) has put into effect comprehensive and progressive regulations for national digital payments and a platform for mobile payments in Jordan (JoMoPay). JoMoPay offers both security and flexibility and ensures full interoperability between the connected digital financial service providers.  However, specific issues are still pending, such as consumer protection instructions, for example.

To ensure the appropriateness of regulation and to enhance uptake of DFS, the CBJ has created a multi-stakeholder policy dialogue forum, the so-called DFS Council. Objective of the DFS Council is to consult the lead agency, CBJ, in all policy and regulatory issues around DFS in Jordan. Through this dialogue, suggestions and concerns of the private sector can be considered during the development of new regulations and guidelines, coordination with other regulatory issues is ensured, and voices of the target group are heard. Moreover, through the institutionalization of this exchange and dialogue format, members can exchange experiences, learn from each other and jointly contribute to the development of digital financial services in Jordan.

In November 2016, the first regular DFS Council took place. The DFS Council members – Payment Service Providers, Banks, MFIs, Card issuers, regulators such as the TRC (Telecommunication regulatory committee) and CBJ, international organizations such as UNHCR – worked on a joint vision for DFS in Jordan. It became clear that despite sometimes being competitors, all stakeholders have to work together in order to reach the ambitious vision of digitizing most payments and remittances by 2020.

The joint commitment is also reflected by the organization of the council: CBJ acts as organizer and head of the council, the GIZ-supported Digi#ances Project hosts the secretariat of the council, and the individual council meetings are hosted and catered for by private sector stakeholders. For example, the first DFS Council Meeting took place at the Tank by Umniah and catering was provided by Alawneh Exchange.Meeting regularly four times a year, the next meeting is foreseen for the beginning of March 2017. The Council members chose to discuss consumer protection for digital financial services.

By Mats Garbe