JoPACC exchanges with Buna on enabling instant cross-border payments

JoPACC exchanges with Buna on enabling instant cross-border payments in the Arab Region

02.08.2021

 

JoPACC engaged in sessions with Buna to discuss enabling instant cross-border payments in the Arab Region. Buna is a clearing and settlement payment system in the Arab Region that was launched in 2020 by the Arab Monetary Fund (AMF). Buna aims to create a platform that facilitates instant regional cross-border payments in multiple currencies. The Buna platform includes the UAE Dirham, the Saudi Riyal, the Egyptian Pound, the Jordanian Dinar, the U.S. Dollar, and the Euro.

Buna approached JoPACC to understand the digital instant payment infrastructure in Jordan. JoPACC provided business and technical insights on offered instant payment services in Jordan and introduced CliQ; Jordan’s instant payment system that was launched in 2020 and has 16 participating banks as of today. Moving forward, Buna and JoPACC began discussing the possibility of connecting both systems and the subsequent settlement of cross-border payment transactions.

On another front, JoPACC, represented by its CEO Ms. Maha Bahou, has participated in Buna’s monthly workshop held at the end of July to discuss the instant payment journey of the Arab region’s instant payment system operators. The workshop was attended by over 200 representatives of central banks and commercial banks from across the region and the world. Ms. Maha shed light on Jordan’s experience in instant payments through JoMoPay- the switch that enables mobile wallets- which have played a significant role in facilitating instant payments following the outbreak of COVID-19. Mobile wallets are connected to efawateercom for the electronic presentment and payment of bills and facilitate the instant payment for services and bills. They are further connected to ATMs for cash-in/cash-out services and can be paired with payment cards that work at POS machines and online for purchases. Cross-border remittances were recently enabled through mobile wallets in Jordan in collaboration with exchange houses, thereby expanding the pool of services mobile wallets offer. Ms. Maha further introduced CliQ- Jordan’s instant payment system- that was launched in mid-2020 to enable instant payments between bank accounts in Jordan based on the ISO20022 standard. Besides the instant transfer of funds, CliQ facilitates returning payments and the request to pay, in addition to recipient confirmation and credit confirmation.

Interoperability lies at the core of Jordan’s payment infrastructure, and compliance with local regulations and international standards is prioritized in the operation and development of payment systems. JoPACC is supportive of efforts to enable regional cross-border instant payments and will continue the coordination with Buna and other players to contribute to expanding payment services in the Arab region.