The Jordan Payments and Clearing Company, a private shareholding company, is a domestic payment system operator that manages and develops several payment systems, introduces innovative digital financial solutions that directly benefit end-users, and produces and disseminates knowledge about digital financial services in Jordan.
The company was established in 2017 and is owned by the Central Bank of Jordan (CBJ) and all commercial banks in Jordan- then 25 and currently 22 banks- with a capital of 12 million JOD. Its clients are commercial banks and payment service providers who connect to JoPACC payment systems to offer financial services to their clients: the end-users. JoPACC has within its portfolio five payments systems.
JoPACC also introduces digital solutions and standards that enhance the quality, diversity, and usability of payment instruments in the Jordanian market. It further produces knowledge on current themes in the payments sector to increase financial awareness and inform decision-making in the financial sector. This knowledge encompasses payment system reports, analytical reports, research papers, blog posts, and awareness content.
JoPACC belongs to a new model of payment system operation globally with a few similar entities. As such, JoPACC aims to position itself as a global leader and expert in the administration of inclusive digital payments. JoPACC’s content is most effective when it is recognized globally but received locally. JoPACC likes to think of itself as a tech-savvy company, ensuring comprehension and competency of cutting-edge technologies and continuously striving toward incorporating them into its Fintech product offering. Moreover, JoPACC puts particular emphasis on improving the lives of marginalized population segments by ensuring equitable and ubiquitous access to digital financial services. These segments include women, youth, and refugees, among others. JoPACC collaborates with the government, local entities, and local and international development agencies to realize its objectives.
JoPACC is committed to international standards that aim to preserve the safety, efficiency, and resilience of payment systems, and is aligned with the Principles for Financial Market Infrastructures. Read more on JoPACC’s commitment towards the PFMIs.
Background
In February 2015, the World Bank advised the Central Bank of Jordan (CBJ) to upgrade the legal framework around the management and operation of payment systems. To enhance governance in the financial sector, the World Bank recommended segregating between the operation and oversight functions at CBJ to position it as a regulator, overseer, and catalyst of change in the payments value chain. Additionally, their recommendations covered the role of the existing National Payments Council as only an advisory and consultative body, while the operations and development of the payment systems are to be migrated to an autonomous entity. This entity shall consist of the CBJ and banks while allowing for future non-bank membership and shareholding when the CBJ decides to divest its share and exit the company.
On the 16th of January 2017, the CBJ and the 25 banks operating in the kingdom agreed to establish the "Jordan Payments and Clearing Company", a Private Company Limited by Shares based in Amman- Jordan. The authorized Company Share Capital is (12,000,000) twelve million Jordanian Dinars, subdivided into (12,000,000) twelve million shares; the value of one share is one Jordanian Dinar.