National Switching for mobile payment
Mobile payment system is an electronic system operated and oversight by the Central Bank of Jordan in which banks, companies, and beneficiaries of the service are registered for the purposes of exchanging financial transactions. Through this system, the net clearing position is worked out and debited to the accounts of banks by the use of Real Time Gross Settlement system (RTGS). JoMoPay was officially launched on 1/4/2014 as a result of the radical change occurs on payment services through mobile in terms of saving or maintaining small financial values, transferring them to others to fulfill financial requirements, and dealing in electronic wallet.
The system provides new and safe mean for immediate electronic payment. It enables a user to use his mobile transfers and payment orders of small values including paying bills, transferring from one person to another, and paying for purchases directly. Accordingly, the system reduces the need for dealing in paper money and coins and minimizing the risks of loozing them in addition to managing other risks. It also achieve great benefit for segments of citizens who are not included in the financial services because of their geographical location and the non- availability of banking network on their areas or for the limitation and small value of their funds and thus they were not able to open accounts in the operating banks.
The Central Bank of Jordan worked interoperability between payment systems in general and retail payment in particular to facilitate and accelerate the process of carrying out and accepting payment operations which would be reflected positively on all participants of retail payment of final users such as consumers, traders, government institutions, in addition to other companies.
The followings are among the most prominent achievements in this area:
Mobile payment through the use of USSD messages technology:
In order to provide citizens all over the kingdom with the service of electronic payment regardless of their place of residence on one side, and for the purpose of enhancing the financial inclusion in the kingdom and make payment services available consistently for all sectors of national society- whether they own smart phones or traditional phones- according to their potentials on the other side, the Central Bank of Jordan has been developing mobile payment services by following a unified method for all financial operations and for all citizens through the use of USSD Messages technology, which considered safe.
This service allows citizens to carry out a number of financial services electronically such as, financial to e-wallet, withdraw money from ATMs, make payments and transfer money electronically. This would save time and efforts for citizens and reduce the size of the operational expenses on national economy in addition to upgrade the level of efficiency and effectiveness of the national payment system.
Payment on Point of Sales (POS) using Near Field Communication Technology (NFC):
In order to facilitate payment operations for citizens and collect revenues owed to institutions in public and private sectors at the lowest cost with immediate and high efficiency, and in order to move from paper payment environment to electronic one; the Central Bank of Jordan has worked on making mobile electronic payment available through the use of NFC technology.
This service is provided through point of sales for traders, government and private institutions such as health centers and hospitals, in addition to means of transportation, grocery stores, universities, bakeries, and other places that will serve citizens all over the kingdom.
Such service was enabled for citizens to facilitate their mobile payment operations after the Central Bank of Jordan imposed the NFC standard specialized for the implementation of this technology.
Payment on Point of Sales (POS) using near field communication technique (NFC) Click here (file size 434.81 KB, file type pdf)
ATM Cash Out Operations:
Cash out service considered one of the main services that citizens who are having banking accounts depend on for managing their liquidity on daily bases.
Based on its vision regarding the diversity in payment channels in the kingdom to fulfill the citizens’ needs at any time and place and in order to receive cash out services by those who have banking accounts or those who don’t have banking accounts and use the “E-Wallet”, the Central Bank of Jordan developed this service by connecting all ATMs operating in the kingdom with mobile payment system directly or through (Jo-net) network- a local network that manage and connect all ATMs in the kingdom.Such service enables citizens to conduct cash out operations from their e-wallet or banking accounts through ATMs spread all over the kingdom, on one side, and to provide the government with a method to distribute financial aid to citizens electronically through transferring funds to their e-wallet or banking accounts, on the other side. Accordingly, citizens may withdraw the fund provided by the government through ATMs without trouble or difficulty.
Connecting Mobile Payment System with Electronic Bill Presentment and Payment System
As it worked at enhancing the efficiency and effectiveness of the National Payment System through the creation of consensual environment and interoperability between payment systems, in general, and enhancing the use of payment means and tools in retail payments and adopting new and innovated payment mechanism, in particular, the Central Bank of Jordan took the initiative to connect between Mobile Payment System (JoMoPay) and Electronic Bills Presentment and Payment System.
The aforementioned connecting operation aims at enabling citizens who do not have banking accounts to inquire the value of their bills in addition to other payments electronically by using their e-wallet which created by service providers for participants in mobile payment system. Moreover, the connection process provide citizens with other financial services such as transferring funds, inquiring about balances, feeding account, in addition to withdraw money.
Furthermore, the connecting service will provide more financial savings for service providers by the access to a set of multiple and different financial services through one point of sale and without the need for re-connecting with different retail payment systems.