Fintech funding in Jordan attracted US$26 million between 2018 and 2022, becoming one of the top investment targets.

A new report by Magnitt, a data platform for investors, founders and corporates in the Middle East, and the Ministry of Digital Economy and Entrepreneurship of Jordan,?titled “The 2018-2022 Jordan Venture Capital Report”, has found that Jordanian startups secured a total of US$246 million in funding across 220 deals between 2018 and 2022.

These statistics put the country at the fourth position in MENA regarding VC funding and rounds rate. Besides, fintech funding in the country constituted 10% of all startup investments during the report period.

Moreover, when it comes to deal count (26 deals), fintech takes the second position nationwide, neck-and-neck with healthcare with a share of 12%? of all startup funding rounds in the country during 2018-2022. E-commerce and retail lead this rating with a 17% share and 38 deals.

The leading segments of funding attraction in Jordan are:

• e-commerce and retail, making up 20% of all startup funding secured (US$50 million);
• edtech with a 16% share (US$38 million);
• healthcare – a 15% share (US$37 million);
• and media and entertainment with a 12% share (US$29 million).

The investment tendency of a growing number of small-ticket fintech funding deals shows that growth and development in Jordan’s fintech sector are increasingly attracting investors’ interest. Prominent investors in the field currently include Oasis 500, as well as Silicon Badia and Dash Ventures.

In the near future, Jordan’s fintech sector is expected to keep up its momentum bolstered by government support. In August 2023, the central bank launched its Financial Technology and Innovation Vision, where it specifically highlights the role of fintech innovation in supporting the development of micro, small and medium-sized enterprises (MSMEs) and improving financial inclusion.

The Central Bank of Jordan (CBJ) also actively promotes contactless payments, which are one of the main fintech solutions, by lifting daily limits for transactions made without a PIN. CBJ manager Adel Sharkas said that contactless payments have demonstrated unprecedented growth after the regulator obliged all banks and companies dealing with electronic transactions not to issue cards and not to use point-of-sale (POS) devices that do not support contactless functions.