The digital revolution in the financial sector continues to make great strides, with the Central Bank of Egypt (CBE) launching the tokenization of payment cards on mobile applications and the Apple Pay service. This major development aims to encourage citizens to use their mobile phones more to conduct digital financial transactions, as part of Egypt’s transition to a less cash-dependent society through the adoption of electronic payments.
The CBE announced in a statement that this tokenization service was implemented in collaboration with leading digital payment providers (VISA and Mastercard), the National Payment Scheme “Meeza” and smartphone manufacturer Apple Inc. This initiative was also coordinated with several banks, mobile payment application providers and fintech companies, in order to facilitate the integration of international and local systems to expand the reach of digital payment services in Egypt and increase customer confidence in using electronic payments.
ECB Governor Hassan Abdalla said that “the launch of the payment card tokenization service on mobile applications is part of the ECB’s commitment to closely monitoring constant technological developments, continuing the considerable progress observed in the field of digital banking services in Egypt.” He added that “Egyptian citizens are currently benefiting from these services, allowing them to easily carry out their financial transactions at a reasonable cost, at any time and from anywhere.”
Furthermore, ECB Deputy Governor Rami Aboulnaga stressed that “the new service illustrates the ECB’s commitment to strengthening the digital financial services infrastructure and providing advanced and secure electronic payments, thus providing various opportunities to offer innovative financial solutions that meet customer needs and the latest global standards.”
This national card tokenization service will provide a digital version of the electronic payment card on mobile applications, allowing customers to make contactless purchases via point-of-sale (POS) terminals or e-commerce websites and applications. Transactions can be authenticated using biometric features (facial recognition, fingerprint, etc.) that will eliminate the need for PIN codes.
With this service, the customer experience will be improved by offering fast and secure contactless electronic transactions without requiring card information. The ECB expects that the launch of the card tokenization service will lead to substantial growth in transactions via point-of-sale terminals and e-commerce applications, which have seen remarkable advances in recent years.
By the end of 2024, the value of transactions via POS terminals will reach approximately EGP 640 billion, recording a growth rate of 280% compared to EGP 169 billion in 2021. Similarly, the value of e-commerce transactions is expected to exceed EGP 180 billion by the end of 2024, compared to EGP 29 billion at the end of 2021, representing a growth rate of over 500%. This development reflects the rise of digital payments in Egypt and the increasing adoption of innovative financial technologies.