Egypt's central bank to support e-payments, fintech, and more

Measures to support electronic payment system and financial technology (fintech) have been reviewed by the Central Bank of Egypt (CBE).

The CBE says the electronic payment sector has witnessed many developments recently, the most important of which are the launch of the national payment system ‘Meeza’, the Non-Cash Payment Law, the FinTech Regulatory Sandbox, and the e-collection of government’s payments, online publication Zawya cited info from the bank’s quarterly magazine Economic Review.

The CBE’s fintech strategy is based on the integration between Egypt 2030 vision and the CBE’s vision to meet the needs of the Egyptian market. The strategy also aims to turn Egypt into a leading centre for fintech in Africa and the Arab world, the online publication added.

‘Meeza’ aims to create and manage a national payment card system through the National Payment Scheme (NPS) for payment cards, POSs, and ATMs. The central bank is responsible for managing this system, which would contribute to achieving financial inclusion by reducing charges and expenses related to banking operations through electronic cards. So far, a total 4 million cards have been issued.

Referring to the e-collection of government’s payments, the bank’s project aims to automate the collection of government payments through points of sale (POS) or websites through the Shared Cash Network ‘123’ of the Egyptian Banks Company (EBA).

It supports the state’s efforts to limit cash payment methods at government agencies. It comes through cooperation between the CBE, the Ministry of Finance, and the Ministry of Planning. As a result, a total 15,300 POSs have been installed in government facilities in the first phase of the project.

Furthermore, Law no. 18 of 2019 for regulation of non-cash payment methods supports the state’s digital transformation efforts to achieve financial inclusion. The law sets a regulatory framework for non-cash payments, and it aims both public and private sectors.

The law also aims to make it easier for citizens to pay for services and products, and to transfer money efficiently and effectively. The law was approved by the House of Representatives on 11 March 2019.

Also, insurance policy forms have been prepared against cybersecurity threats to meet the needs of the banking sector, within the framework of cooperation between the CBE and the Financial Regulatory Authority (FRA).

Besides these initiatives the bank aims to automate all registration and deposit operations for government securities and the relevant settlement and clearing operations via a central depository and registration system. Plus, to launch a multi-currency instant payment settlement system that includes transactions in foreign currency (US dollar) within Egyptian banks in the instant payment settlement system to save time and cost of settling payments. It is expected to be launched later in 2020.