Transforming Financial Inclusion: The Success of CliQ - JoPACC's Instant Payment System

Overview

In June 2020, the Jordan Payments and Clearing Company (JoPACC) proudly launched CliQ, an innovative Instant Payment System poised to transform Jordan’s financial landscape. By adhering to international standards for financial market infrastructures and leveraging cutting-edge payment technologies, CliQ facilitates real-time interbank fund transfers for bank customers across Jordan. This initiative positions Jordan as a leader in payment systems, offering a model that other countries can learn from.

The primary motivation for launching CliQ is the demand for accelerated retail payments, enabling the flow of funds between the sender's and receiver's accounts in real-time. Ultimately, CliQ enhances the efficiency of the financial system in Jordan, reduces reliance on cash transactions by offering a convenient and accessible alternative, increases the velocity of money in the Jordanian economy, and reduces liquidity pressures.

In December 2021, JoPACC upgraded the Jordan Mobile Payments Switch (JoMoPay) to the ISO 20022 standard. The journey of conceptualization, design, development, and certification was undertaken in collaboration with banks and mobile Payment Service Providers (mPSPs). This enhancement aims to improve the Jordanian payments ecosystem and foster digital financial inclusion. By upgrading the JoMoPay switch to the same infrastructure as CliQ, the upgrade enabled a fully interoperable instant transactions between CliQ and JoMoPay, allowing both mobile wallet users and bank users to seamlessly send transfer between bank accounts and mobile wallet accounts. This unified infrastructure under the ISO 20022 standard marks a significant advancement in digital payments, providing a more efficient and accessible financial experience.

CliQ, a fully interoperable payment system that adopts the ISO 20022 messaging standard, leverages cutting-edge international principles of financial market infrastructure, making it a valuable addition to Jordan’s payment ecosystem and one of JoPACC's strategic pillars.

Key Features of CliQ

• Available 24/7: CliQ allows clients to send and receive money anytime, anywhere, offering true financial flexibility.
• Instant Transfers: CliQ processes transactions in real-time, significantly improving the efficiency of Jordan's financial system.
• Wide Accessibility: Integrated into the mobile banking apps of 19 banks in Jordan, CliQ's services are easily accessible to a majority of bank clients.

Importance of CliQ on Financial Inclusion and the Macro-Economic Level in Jordan

• Enhancing Financial Inclusion

CliQ represents a significant leap forward in our commitment to financial inclusion. By providing a seamless and reliable digital payment solution, CliQ ensures that a broad spectrum of users, including those previously excluded from traditional banking services, can participate fully in the digital economy. Our collaboration with 19 banks and numerous mobile payment providers has facilitated this inclusivity, empowering individuals and small businesses with efficient tools for managing their finances.

• Boosting Economic Activity

One of the key impacts of CliQ is its ability to accelerate the movement of money within the Jordanian economy. By enabling real-time transactions, CliQ enhances the efficiency with which funds are circulated and utilized. This increased velocity of money contributes to overall economic activity, enabling businesses and consumers to operate more effectively and with greater confidence. The reduction in reliance on cash further supports this economic boost, allowing for more dynamic financial interactions.

• Reducing Liquidity Pressures

CliQ’s ability to process payments instantly addresses liquidity challenges, especially during weekends and holidays when traditional banking services are unavailable. Continuous access to funds ensures that both individuals and businesses can meet their financial commitments without disruption. This capability is crucial in stabilizing the financial system and supporting economic resilience.

• Supporting Government and Regulatory Goals

CliQ aligns with the Jordanian government's goals of promoting financial inclusion, reducing the informal economy, and enhancing economic stability. By providing a secure, efficient, and transparent payment system, CliQ supports regulatory efforts to monitor and manage financial transactions more effectively. This alignment underscores CliQ's strategic importance in shaping a more inclusive and resilient financial landscape in Jordan.

Maha Bahou, CEO of JoPACC, on CliQ's Pivotal Role in Advancing Financial Inclusion in Jordan

CliQ has emerged as a transformative force in the world of instant payments, offering a solution that is not only convenient and affordable but also highly user-friendly. Its impact on national financial inclusion has been substantial, encouraging many individuals without bank accounts or digital wallets to open them. As a key driver for Jordanians to engage with banking services, CliQ has played a vital role in expanding digital financial inclusion.

Previously, many individuals with traditional banking relationships were hesitant to embrace digital financial tools due to a lack of trust. However, CliQ’s ease of use and convenience have successfully bridged this gap, fostering national confidence and trust in digital financial services (DFS). Its seamless interoperability between bank accounts and digital wallets has greatly simplified DFS adoption across the Kingdom, making transfers and payments between users exceptionally straightforward.

From an economic perspective, CliQ has revolutionized payment methods by offering a secure and efficient 24/7 service. It has quickly become the preferred choice for payments and transfers, enhancing the velocity of money within the economy. CliQ has significantly reduced reliance on cash and cheques, handling more than 5 million transactions per month on average. It has established itself as the leading payment method for individuals and small businesses alike, reshaping Jordan’s financial landscape.

Conclusion

CliQ is more than just a payment system; it represents a transformative leap in Jordan’s financial technology landscape. By offering instant, reliable, and accessible payment solutions, CliQ enhances financial inclusion, streamlines transactions, and boosts the overall efficiency of the financial system in Jordan. Its integration with mobile banking apps and adherence to modern standards ensure seamless interoperability and advanced security features, making it a benchmark for payment systems globally.

Jordan’s experience with CliQ provides valuable insights for other countries looking to implement similar systems. By adopting advanced payment standards and ensuring interoperability, nations can enhance their financial infrastructure, drive economic growth, and promote financial inclusion. CliQ’s success demonstrates the importance of innovation and collaboration in developing robust financial solutions that meet the evolving needs of consumers and institutions. This journey toward a more inclusive and efficient financial ecosystem positions Jordan as a model for global financial technology advancements.