News

MIDBANK enters Instant Payment Network

Monday 4 September 2023 11:41 CET | News

Egypt-based MIDBANK has entered the Instant Payment Network (IPN) to enable cash transfers between banks. 


Through this, the bank’s customers will be able to transfer funds instantly between accounts and to e-wallets using their mobile phones via the InstaPay application. Moreover, clients will be able to pay their credit card bills, make donations, and check bank statements.

Egypt-based MIDBANK has entered the Instant Payment Network (IPN) to enable cash transfers between banks.

The joining comes within the framework of MIDBANK’s strategy to adapt to the latest technological banking systems, attract more customers, and improve the local economy.

More information about IPN

Instant Payment Network (IPN), owned by Egyptian Banks Company, is a payment method that enables real-time instant fund transfers between bank accounts inside Egypt. Customers can send money via IPN using the payee’s account number, IBAN, IPN registered mobile number, or Instant Payment Address (IPA), digital wallets, and cards.

InstaPay, which was launched in March 2022, functions in conjunction with IPN and it includes interbank operating technologies, connecting all banking systems via a digital infrastructure. Moreover, the application is designed to integrate with fintech companies, therefore enabling opportunities to create payment solutions that address the needs of various segments.

When it was first introduced, the network member banks included the National Bank of Egypt, Banque Misr, Commercial International Bank, ALEXBANK, QNB Al Ahli, Arab Bank, Arab African International Bank, Banque du Caire, Egyptian Gulf Bank, and Société Arabe Internationale de Banque.

Banking in Egypt

According to Statista’s report, cash represented the main payment method in Egypt in 2022, with 57% of online purchases being paid at delivery. Only 22% of online retail payments were completed with cards, while 14% were paid through e-wallets. Even if brick-and-mortar networks remain the primary ways in which banks interact with their clients, digital solutions are expanding rapidly.

The Central Bank of Egypt (CBE) supports the digitisation of this sector by implementing regulations for digital payment services as part of a long-term strategy to migrate to a cashless economy. Since 2016, licensed banks have been able to offer mobile wallets to their clients as the CBE introduced regulations for the process, while in 2018 a directive instructed banks to ensure that a minimum of 10% of their e-wallet customers are active users.

Moreover, in 2019, the CBE announced its plans to establish an innovation support fund the Innovative Financial Technology Application Lab, a regulatory sandbox for fintech companies to test new products and services.

The COVID-19 pandemic contributed to the expansion of digital payments in Egypt, as 89% of users have confirmed that they increased the use of these payment methods in 2021. Also, 67% of Kaspersky's study’s participants said that they started using digital payment services during this period. Online payments helped 62% of individuals maintain physical distance, while 90% confirmed a reliance on digital banking services and digital wallets even after the pandemic ended. 

More: Link


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: instant payments, online banking, COVID-19, mobile banking, digital banking
Categories: Banking & Fintech
Companies: MIDBANK
Countries: Egypt
This article is part of category

Banking & Fintech

MIDBANK

|
Discover all the Company news on MIDBANK and other articles related to MIDBANK in The Paypers News, Reports, and insights on the payments and fintech industry: