Startups are driving payment innovation in Jordan
For businesses in the Middle East and North Africa (MENA), regional growth often follows a predictable pattern.
The United Arab Emirates (UAE) is a popular choice for international businesses, with Abu Dhabi and Dubai both attracting global companies looking for a regional base to run their MENA-wide operations.
For example, when Banking-as-a-Service (BaaS) firm NymCard grew out of its founding office in Beirut, Lebanon, the company looked to set up shop in Abu Dhabi. It brought them closer to “customers, tech startups and payment innovators who are looking for different types of modern payment solutions,” the company’s CEO and founder, Omar Onsi, told PYMNTS in an interview.
Les Onsi’s interview: The key to solving MENA banking challenges starts with regulators
From Abu Dhabi, NymCard can now easily orchestrate its operations across the MENA region, where it wants to remain long-term.
“[NymCard] not trying to serve the whole world, we are laser focused on solving the MENA problems. You will never see us in Europe, the US or in parts of Asia,” Onsi added.
Beyond these two Emirati megacities, the Kingdom of Saudi Arabia (KSA) and Egypt are the largest Arabic-speaking economies in the region, offering large markets for companies to tap into.
When it comes to the FinTech sector, Bahrain is an attractive proposition due to its established banking sector and friendly regulatory environment. In recent years, the small country has given rise to companies such as Tarabut Gateway, which have become a key player in the wider MENA FinTech ecosystem.
See also: PYMNTS GCC Series: Bahrain Drives Open Banking Adoption in MENA
Kuwait is also home to several major banks, an affluent population and has a strong track record of inward investment.
FinTechs boost Jordan’s digital economy
While Jordan has not been a popular destination for businesses looking to expand across the MENA region in the past, that appears to be changing.
Constantly regarded as one of the region’s premier BaaS providers, NymCard made its first foray into the Jordanian banking sector last year through a partnership with the UAE’s INVESTBANK. Using NymCard’s technology, INVESTBANK can now offer its customers contactless mobile payments using the NymCard app.
Another example is the recent news that ePayments business Ziina, which operates from the Dubai International Financial Center, is launching its platform in Jordan.
As the first market outside of the UAE that Ziina has ventured into, the move to Jordan represents something of a homecoming for the company’s co-founders, who are both natives of the country.
Electronic payment solutions such as Ziina and NymCard are laying the groundwork for further FinTech innovation in Jordan, and funding will be critical to fostering a healthy technology sector.
In a promising sign, Jordan-based peer-to-peer (P2P) lending platform liwwa last week secured an $18.5 million pre-Series B raise to enable more of its retail customers to finance loans and earn returns, simultaneously as it helped improve financial inclusion in the country.
This shows that FinTechs will play a central role in boosting the growth of the digital economy, bringing the more than 750,000 refugees registered in Jordan into the economic fold.
Recognizing the critical role the FinTech sector can play in supporting such marginalized populations, the Government’s National Strategy for Financial Exclusion has been built around the three pillars of microfinance, digital financial services and financing for small and medium-sized enterprises (SMEs).
In these areas, companies like liwwa have a lot to offer and will undoubtedly play an important role in the years to come.
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