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The global payment systems and tools have witnessed a remarkable development in the last ten years due to the rapid growth and evolution of information technology, digital financial services and e-commerce. As interest increased in financial and banking sector infrastructure, specifically in the field of clearing and settlement of payments and securities, the expectations indicate that the next years will see a more significant acceleration in technology and information. Consequently, major changes in the needs, features and forms of tools for payment and electronic transfer of funds in the Jordanian market. Moreover, the past two decades have seen a shift away from cash and other paper-based methods, toward electronic payment (e-payment) in numerous markets around the world. This trend mirrors the widely held belief that electronic types of payment function at lower costs and provide more advantages to society than paper-based methods, including improving financial inclusion and enhancing the welfare of merchants, people and the economy as a whole.
Across the globe, electronic payments proceed on a march toward displacing paper-based methods for conducting consumer payment transactions with merchants. Several countries are well on their way toward becoming “cashless societies”, while others are making steady advances toward reducing their reliance on cash in at least some of the critical segments of consumer spending. Despite this overall trend, there are still cash-centric economies in many countries, especially in emerging markets. In this regard, there are two major payment systems used in Jordan, namely large-scale payment systems which includes Real Time Gross Settlement System (RTGS-JO), and retail payment systems that comprise of three categories. The first category is Electronic Cheques Clearing System (ECC), Automated Clearing House System (ACH), Electronic Bill Presentment and Payment System (eFAWATEERcom) and Mobile Payment System (JoMoPay). Followed by the second category; retail payment instruments (e.g. Cheques, Payment Cards and Electronic Wallets) and then; electronic payment channels (e.g. Internet Banking, Mobile Banking, Automated Teller Machines (ATMs), Point of Sales (POS) and E-Commerce Portals...etc.) (Central Bank of Jordan, 2016).
In light of this, finance and banking sector seeks to exploit the outcomes of technology in the payment systems, tools and means, and to benefit from the latest information technologies and communication networks in the field of payment and electronic transfer of funds, in order to achieve the speed and simplicity and to reduce the operational costs of payment transactions and electronic transfer of funds, and to enhance the safety and security of payments. Besides, E-payment has become a popular method today for paying; it is designed to benefit customers basically in terms of convenience, and lower the transaction cost (Central Bank of Jordan, 2016). The growth of the internet has encouraged the popularity of this payment instrument as electronic commerce (e-commerce) has created new financial needs that in many cases cannot be adequately fulfilled by traditional payment systems (Wendy et al., 2013).