(MENAFN- Asdaa-amman) Fintech continues to thrive in the Levant region, improving the lives of consumers everywhere by creating frictionless payment experiences.
Back in 2011, Jordan-centered MadfoatCom, was created as a necessity for those spending long hours in queues, trying to pay their utility bills. A pioneering initiative, the startup faced its share of trials before receiving funding, and eventually was selected by none other than the Central Bank of Jordan as its e-payment partner. Today, MadfoatCom is a success story, having secured the top position in a list of fintech companies by a well-known publication for its innovative approach and impact on the fintech sector.
Similarly in 2018, the International Network of Cards and Digital Payment Services Ltd., or INC (Neo), began as an enterprise by forward-thinking founders who believed money must become digital. With an ambitious mission to help Iraqi citizens obtain digital payments, the company achieved a significant breakthrough in a market that historically lacked access to banking facilities and electronic payments. The company envisioned sweeping progress in Iraq’s financial inclusion. By providing secure, efficient, adaptable payment solutions the company has revolutionized the payment industry by launching the first digital-only card in 2019, to piloting biometric payment cards in 2021, in Iraq.
The reason why these are success stories is because they were able to find a solution that made the lives of consumers easier. As the original fintech (which Visa is often called) we find this innovative mindset essential to ensure consumers and businesses find easier and more secure ways of fulfilling their payments.
MadfoatCom and INC are one of the many startups within the thriving fintech landscape in Jordan, Lebanon, Iraq, and the wider Levant region. The governments of these countries have found solid footing for their financial inclusion and financial literacy strategies through the innovative efforts of such companies.
Government intervention is also not to be taken for granted. For instance, the Central Bank of Jordan- recognized the vital role of fintech in transforming economies and launched its Fintech and Innovation Vision in 2023, in line with Economic Modernization Vision. Similar efforts have been made in Lebanon where the Central Bank of Lebanon had passed a resolution to accelerate access to digital wallets since 2021. In Lebanon online payment platforms are becoming an essential building block for many SMEs and startups to process payment transactions via online or mobile networks. In Iraq, fintech is steadily gaining popularity due to a growing digital economy, increasing demand for mobile banking services, and spiraling emphasis on financial inclusion initiatives by the Central Bank of Iraq.
Alignment between governments, regulators, businesses, consumers, and technological partners together can power the process of creating infrastructure and transitioning to a digital economy, which presents several opportunities for economic development and value generation. It facilitates eCommerce expansion across borders to new markets and demographics.
Beyond eCommerce, this digital ecosystem facilitates startups and SMEs, bolstered by fintech players who are enabling access to payment technology transcending disrupted supply chains. Many start-ups in Iraq have integrated fintech to their platforms such as Eduba, Tamata, elsaree3, Pure Platform, Orderii, Amal, Miswag, Elryan, Lezzoo, Boombene, Fedshi, Kurdivia, Orisdi. Jordan has seen a rise in digital payment solutions, including mobile wallets, such as Orange Money and Zain Cash , and digital payment systems offered by the Jordan Payments and Clearing Company (JoPacc) which include: CliQ, JoMoPay, eFAWATEERcom, ACH, and ECCU. This year, JoPACC in collaboration with a taskforce that includes the Central Bank of Jordan, and a group of banks, launched the Jordan Open Finance Standards, to unify requirements for APIs for a range of the most important financial services in the banking sector.
This standard expedites launch of innovative fintech solutions and banking products into the market. Visa was a jury panelist and mentor for the JOIN Fincubator program, a newly launched Incubator by JoPACC, which had 11 Fintech start-ups graduate in their first cohort. Those start-ups went from idea stages to launching Minimum Viable Products (MVPs) and operating business models.
Another development is the introduction of new digital wallets in Iraq, which has encouraged digital payments adoption.
It is clear to see that the many stakeholders involved are now working together to create real value within their economies through innovation. Funding greatly accelerates this process, and many external stakeholders are now supporting this flourishing growth. In fact, Jordanian startups secured a total of $246 million through 220 deals between 2018 and 2022, putting the country at the fourth position in MENA in VC funding and rounds behind only the region’s top three markets, namely the United Arab Emirates (UAE), Saudi Arabia and Egypt .
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