Benchmark Data on Payments by Micro and Small Enterprises In Jordan

The survey field work took place from September 9 to 16, 2018, while the focus group discussions were held from September 1 to 16. The survey aimed to gather information on financial dealings, cash management, and record keeping among micro and small enterprises. The findings revealed that micro businesses (1-9 employees) and small businesses (10-50 employees) in Jordan primarily use cash for financial transactions. The majority of micro businesses receive payments in cash, while small businesses use a combination of cash and digital payments. The survey also found that micro businesses and small businesses face challenges in managing their finances, including difficulties in keeping accurate records and maintaining cash flow. However, there is a growing interest in digital financial services (DFS) among micro and small enterprises in Jordan. The survey revealed that 60% of micro businesses and 70% of small businesses are willing to adopt DFS, with the majority citing the convenience and speed of digital payments as the primary reasons. The focus group discussions provided further insights into the DFS market in Jordan. The discussions revealed that micro and small enterprises are attracted to DFS due to its potential to reduce transaction costs and increase efficiency. However, the participants also highlighted the need for increased access points and better customer-centric services to promote the adoption of DFS. The survey and focus group discussions also identified key challenges facing the DFS market in Jordan. These include the need to increase trust in the DFS market, build customer-centric services, and examine the current DFS pricing models. The report recommends that microfinance institutions (MFIs) consider the satellite branch opportunity to increase access to DFS, while also looking for technical assistance opportunities to support the development of the DFS market. The survey and focus group discussions were conducted in collaboration with FHI 360, the implementing partner of the LENS Project. The report provides a comprehensive overview of the DFS market in Jordan, highlighting the opportunities and challenges facing micro and small enterprises in the country. The findings of the report can inform policy and program interventions aimed at promoting financial inclusion and supporting the growth of the DFS market in Jordan.