As e-wallets become staples, experts warn of information security risks, misuse

AMMAN — Over two million people are currently using e-wallets in Jordan. Yet, like any other emerging technology,  experts caution that misuse of e-wallets can lead to financial struggles, as well as legal ramifications.

An e-wallet is a financial account used via a mobile application to transfer funds, pay bills, manage savings, shop online and conduct other transactions. Users do not need bank accounts to create e-wallets, which are operated by eight Central Bank of Jordan (CBJ)-approved platforms. 

Users can open two electronic wallets, provided that each one is linked to a different phone number, as the e-wallet number is the same as the mobile number, according to the JoMoPay website, which is the main provider of approved e-wallets in Jordan. 

The demand for e-wallets increased significantly with the emergence of the COVID-19 pandemic, as consumers had to navigate a world of payments without the exchange of physical currency. However, a range of new challenges emerged alongside the new technology, leading experts to warn users to exercise caution when making online payments and ensure that account information is kept confidential.

Ghassan Abu Shehab, executive director for the national e-payments monitoring and inspection unit at CBJ, told The Jordan Times that the CBJ supervises and controls e-payment and settlement systems to ensure the security, safety and efficiency, as well as the smoothness of payments, clearing and settlement systems. The CBJ’s oversight of e-wallets is also intended to ensure the stability, security and efficiency of the Kingdom’s financial and banking sector. 

“The CBJ constantly collects and analyses data related to e-wallets to monitor any suspicious behaviours that may affect both the accounts and their users. In addition to supervision and control, service providers are required to provide a service portfolio to guarantee their financial integrity and the integrity of their procedures, and confirming that they work according to the requirements of the CBJ,” Abu Shehab said. 

Moreover, service providers are required to outsource and utilise an external auditing company to check accounts, infrastructure and information systems, Abu Shehab added. 

“Part of the requirements that service providers have to ensure is verifying the identity of the user,” Abu Shehab noted. 

Each e-wallet user has to be the account’s beneficiary, and the individual user’s information must be verified through their personal identity documents and information that they provide when signing up for the service.

“The user should be the only beneficiary. However, in some cases, users choose to authorise the use of their personal e-wallet to another individual,” Abu Shehab added. 

Abu Shehab stated that giving authorisation for third-party use of a personal e-wallet is a “wrong act”, and noted that the user bears all legal and financial consequences. 

He urged e-wallet users to refrain from sharing their username and password, or any other personal information, with any other person. 

Meanwhile, Jordanians believe that e-payments are now an essential part of the financial system that “they can't live without”.

“E-payments in general are a seamless, fast and simple way of making payments. You do not need to go to your banks frequently to deposit your payments,” Jordanian Sahar Atallah told The Jordan Times. 

Atallah added that e-payment applications allow users to keep up with their financial records with great accuracy and minimal effort. 

Business owner Issa Qandalaft told The Jordan Times that e-payments are also essential for businesses. 

“Every business needs to maintain a higher cash flow to operate smoothly, which is why many businesses, if not all, have started inclining towards accepting payments electronically,” Qandalaft added. 

Qandalaft noted that e-payments can help businesses provide a convenient payment experience to their customers, with high security and low risk.