Sunday 22 Dec
As part of the Central Bank of Egypt's efforts to support the transition towards a less cash-dependent society and to stimulate the expansion of electronic payment methods, the service of tokenizing payment cards on mobile applications and activating Apple Pay has been launched as a first phase. This is a significant step towards encouraging citizens to rely on mobile phones for completing digital financial transactions.
The service was launched in cooperation with international card networks Visa and Mastercard, the national payment system "Meeza," and Apple, the manufacturer of smartphones. It was also coordinated with a number of banks, mobile payment application providers, and financial technology companies, contributing to the integration of international and local systems to ensure the expansion of digital payment services in Egypt and enhancing customer confidence in using electronic payments.
On this occasion, Hassan
Abdullah, Governor of the Central Bank of Egypt, stated that "the launch
of the payment card tokenization service on mobile applications comes within
the framework of the Central Bank of Egypt's keenness to keep pace with rapid
technological developments and in continuation of the significant boom
witnessed in the field of digital banking services in Egypt, from which
citizens in all parts of the republic have benefited, enabling them to conduct
their financial transactions easily and at a reasonable cost at any time and
from anywhere."
For his part, Rami Abul Naga,
Deputy Governor of the Central Bank of Egypt, explained that the new service
confirms the Central Bank of Egypt's commitment to strengthening the
infrastructure of digital financial services and providing advanced and secure
electronic payment services for customers, as this service provides tremendous
opportunities to provide innovative financial solutions that meet customer
requirements and keep pace with best global standards.
The national payment card
tokenization platform will allow for the addition of a digital copy of the
electronic payment card to mobile applications and its use in purchasing
transactions, whether through electronic point of sale (POS) or through online
websites and applications (e-commerce). Payment transactions can be
authenticated using biometric features, such as facial or fingerprint
recognition, without the need to enter the card's PIN. The service will also improve
the customer experience in completing electronic transactions in a contactless,
fast, and secure manner, without the need for electronic payment card data.
It should be noted that the launch of the card tokenization service will contribute to an increase in payment transactions through electronic point of sale and online e-commerce, which have witnessed significant growth in recent times. It is expected that the value of electronic point of sale transactions will reach approximately 640 billion Egyptian pounds by the end of 2024, representing a growth rate of 280% compared to 2021, during which transactions worth 169 billion Egyptian pounds were executed. It is also expected that the value of e-commerce transactions will exceed 180 billion Egyptian pounds by the end of 2024, compared to a value of 29 billion Egyptian pounds at the end of 2021, representing a growth rate of more than 500%.
