Access Model and Criteria

JoPACC’s access models and criteria are based on international best practices to ensure fair and safe participation across its systems. The following participation types are defined and classified according to two main factors: the mode of connectivity to the payment infrastructure and the settlement method. Each participant has to meet only one of each settlement method and the mode of connectivity to the payment infrastructure.

Mode of connectivity to the payment infrastructure:

• Direct Participants: an entity with direct access to the payment system’s services and is bound by the rules of the payment system. Its transactions are cleared and recorded by the payment system through a direct link to it. All settlement participants must participate as direct participants.
• Indirect Participants: an entity that does not have direct access to the payment system’s services and is typically not directly bound by the rules of the payment system but whose transactions are cleared and recorded by the payment system through a direct participant. Indirect participation is possible through a bilateral agreement with a direct participant.

Mode of Settlement:

• Settlement Participants: participants with a direct participation arrangement at the Real-Time Gross Settlement (RTGS) system owned and operated by the Central Bank of Jordan. Settlement participants maintain settlement accounts at the CBJ, enabling direct settlement of transactions cleared through other payment systems.
• Non-settlement Participants: entities that do not have direct access to the RTGS system owned and operated by the Central Bank of Jordan. Non-settlement participants settle transactions cleared via a settlement participant, where bilateral agreements must exist between the settlement participant and the non-settlement participant.

As a prerequisite for joining any of JoPACC’s systems, JoPACC reviews the entity’s nature of intended operations on its payment systems. In doing so, JoPACC reviews relevant licensing by the CBJ and compliance with any relevant regulations applicable to the entity. Furthermore, JoPACC evaluates the capacity of the entity to comply with its technical and operational requirements for the relevant scheme before deciding on the mode of connectivity. As for the mode of settlement, all entities holding a settlement account at the CBJ must participate as settlement participants, whereas all other entities must participate as non-settlement participants.

Based on the above access models, JoPACC will maintain the following access and participation types through its payment systems:

• For Commercial Banks, access to JoPACC’s payment systems will be through a Direct Settlement arrangement.
• Non-bank regulated financial institutions, such as Payment Service Providers, will access JoPACC’s payment systems through a Direct Non-Settlement arrangement.
• Non-bank financial institutions which are not regulated by the CBJ, such as FinTechs, will access JoPACC’s infrastructure through an Indirect Non-settlement arrangement.

For JoPACC to maintain its position as an enabler of financial innovation, exceptions to the above participation arrangements can be made for non-financial institutions or unregulated non-bank financial institutions. Such exceptions will follow a comprehensive review of the entity’s cybersecurity, business, risk management, compliance, operational, and governance policies and practices, where such institutions can join following a Direct Non-Settlement arrangement.