ANDREW MOORE / FLICKR DIGITAL FINANCE COUNTRY REPORT JORDAN DISCLAIMER: The USAID local enterprise support (LENS) project is funded by the United States Agency for International Development (USAID) and implemented by FHI 360. This report is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of MEDA and do not necessarily reflect the views of USAID or the United States. ACKNOWLEGDEMENTS USAID Jordan Local Enterprise Support Project (LENS) would like to acknowledge the strong support of all key informants Interviewees Annex 2.This report was drafted by Peter Nzebile and Davy Denadi. Further, reviews from Chris Statham and Caroline Averch (USAID LENS) and Imad Aloyoun (Dinarak) were invaluable. This document has been produced with the financial assistance of USAID LENS. The views expressed herein can in no way be taken to reflect the official opinion of USAID. 1 | DIGITAL FINANCE COUNTRY REPORT- JORDAN TABLE OF CONTENTS TABLE OF CONTENTS ............................................................................................................. 1 TABLE OF TABLES .................................................................................................................... 3 TABLE OF FIGURES .................................................................................................................. 3 LIST OF ABBREVIATIONS AND ACRONYMS .......................................................................... 3 GLOSSARY ................................................................................................................................. 6 1. EXECUTIVE SUMMARY ..................................................................................................... 8 1.1. INTRODUCTION ............................................................................................................................................ 8 1.2. DFS STAKEHOLDERS ...................................................................................................................................... 8 1.3. POLICY AND REGULATION ............................................................................................................................ 9 1.4. INFRASTRUCTURE ........................................................................................................................................ 10 1.5. CUSTOMER AND MARKET POTENTIAL ......................................................................................................... 11 1.6. PAYMENT SERVICE PROVIDERS AND VOLUME DRIVERS ................................................................................. 12 1.7. AGENT NETWORK ...................................................................................................................................... 13 1.8. DFS ECOSYSTEM SUMMARY ......................................................................................................................... 14 1.9. KEY FINDINGS .............................................................................................................................................. 14 1.10. IDENTIFIED OPPORTUNITIES AND CHALLENGES FOR DFS GROWTH ........................................................... 15 2. COUNTRY OVERVIEW .................................................................................................... 16 3. DEMAND FOR FINANCIAL SERVICES ............................................................................ 18 4. REGULATIONS ................................................................................................................ 20 4.1. DIGITAL FINANCE SERVICES OVERVIEW ....................................................................................................... 20 4.2. MOBILE FINANCIAL SERVICE MODELS .......................................................................................................... 21 4.3. AGENT NETWORK ...................................................................................................................................... 22 4.4. KYC/AML ................................................................................................................................................... 23 4.5. CONSUMER PROTECTION ............................................................................................................................ 23 4.6. OTHER ISSUES .............................................................................................................................................. 23 4.7. OTHER INITIATIVES ...................................................................................................................................... 24 5. FINANCIAL SECTOR ....................................................................................................... 25 5.1. OVERVIEW ................................................................................................................................................... 25 5.2. FINANCIAL INCLUSION ................................................................................................................................ 25 5.3. BANKS ......................................................................................................................................................... 26 5.4. MICROFINANCE ........................................................................................................................................... 27 5.5. OTHER FINANCIAL SERVICE INSTITUTIONS ................................................................................................... 29 5.6. INSURANCE COMPANIES ............................................................................................................................... 29 5.7. PAYMENT SYSTEM ........................................................................................................................................ 30 5.8. EFAWATEERCOM ..................................................................................................................................... 30 5.9. SUPPORTING PAYMENT INFRASTRUCTURE ................................................................................................... 31 5.10. GOVERNMENT’S IT AND COMMUNICATION STRATEGY .............................................................................. 32 5.11. JORDAN CREDIT BUREAU (CRIF) ................................................................................................................ 32 5.12. GIZ DIGI#ANCES PROJECT .......................................................................................................................... 32 5.13. CONSUMER FINANCIAL EDUCATION AND PROTECTION............................................................................. 32 5.14. WOMEN AND FINANCIAL SERVICES ............................................................................................................. 33 1 | DIGITAL FINANCE COUNTRY REPORT- JORDAN 6. MOBILE SECTOR.............................................................................................................. 33 6.1. OVERVIEW ................................................................................................................................................... 33 6.2. OPPORTUNITIES FOR THE MOBILE INDUSTRY IN JORDAN ............................................................................. 34 6.3. CHALLENGES ............................................................................................................................................... 34 6.4. 4-G PENETRATION ....................................................................................................................................... 34 6.5. SOCIAL MEDIA ............................................................................................................................................. 35 6.6. MOBILE FINANCIAL SERVICES: ....................................................................................................................... 35 7. MOBILE FINANCIAL SERVICE PROVIDERS .................................................................... 35 7.1. OVERVIEW ................................................................................................................................................... 35 7.2. PAYMENT SERVICES PROVIDERS .................................................................................................................... 36 7.3. ZAIN CASH .................................................................................................................................................. 37 7.4. AL-HULOOL ................................................................................................................................................ 38 7.5. DINARAK ..................................................................................................................................................... 39 7.6. AYA PAY ...................................................................................................................................................... 39 7.7. MEPS ........................................................................................................................................................... 39 7.8. BANKS ......................................................................................................................................................... 40 7.9. MICROFINANCE