CBE partners with Mastercard to bring card tokenisation know-how to Egypt
Egypt’s central bank is collaborating with Mastercard to support the implementation of card tokenisation regulations by providing infrastructure to all issuing banks across the North African country.
The move aims at ushering in a new era of seamless and secure digital payment transactions for millions of Egyptians, including unbanked individuals, Mastercard said in a statement on Tuesday.
“Mastercard’s continuous efforts are aligned with the Egyptian government’s vision and strategic objectives by promoting access to electronic payments, capitalizing on technological innovation and efficiency to drive financial inclusion and achieve sustainable and economic growth.” the statement read.
By introducing tokenisation legislation and infrastructure, the Central Bank of Egypt (CBE) is transforming Egypt to make digital payments secure, convenient and seamless, subsequently attracting new market players and taking fintech innovation to unprecedented milestones.
The innovative solution works by replacing sensitive customer data such as payment card primary account number with a unique identifier, or ‘token’, which can then be used to accomplish mobile point-of-sale transactions, in-app purchases, or online purchases safely, eliminating the need to include actual card information.
“The Central Bank of Egypt issued the new regulations for payment cards tokenisation to drive digital payments innovation, support the transition to a cashless society, and attract international players to the Egyptian market.” said Amany Shams-Eldin, First Sub-Governor for Banking Operations and Payment Systems at the CBE.
“This will strengthen Egypt’s position as an innovation hub for new payment services in the Middle East and Africa region,”
Meanwhile, Ehab Nasr, Assistant Sub-Governor for Electronic Payment Operations and System at the CBE, said the CBE’s efforts to make tokenisation available to all issuing banks in Egypt, in collaboration with payment service providers, paves the way for digital payments development and innovation within the Egyptian ecosystem. Therefore, this step drives “consumers’ adoption of safe and convenient digital payment options,”
“The launch of card tokenisation not only signifies a new era in the country’s digital payments landscape but also marks an important step for all stakeholders in the Middle East and Africa’s payments industry.” said Khalid Elgibali, Division President for MENA at Mastercard.
“As Egypt advances the adoption of innovative and safe digital payment solutions, Mastercard is dedicating its global expertise and local insights to place Egypt at the forefront of financial technology across the region.” Elgibali added.
“The Central Bank of Egypt’s efforts continue to fuel our commitment to fast-tracking the country’s cashless transition, building a more inclusive and sustainable digital economy,”
Designed to counter online fraud and curb digital payment breaches, tokenisation enables simpler online payments, quicker checkouts, and easier card management by securely storing a digital version of payment cards on smartphones and enabling transactions through tokens that are uniquely generated for a single card at a specific merchant.
Adam Jones, Country General Manager for MENA Central at Mastercard, said: “This new milestone is a continuation of our efforts to transform Egypt’s digital financial infrastructure and take the country’s drive towards a cashless economy to new heights,”
The introduction of card tokenisation technology is imperative to developing digital payments and offering new payment services, in line with the CBE’s strategy, said Tarek Raouf, CEO and Managing Director of the Egyptian Banks Company (EBC).
“Tokenisation marks a significant development in the country’s payments infrastructure, which in turn contributes to a healthy economy and attracting global investments,” Raouf added.
As the national operator of payments infrastructure, EBC’s mission is to support the transformation of digital payment methods by working with payment service providers, and empower innovation to unlock safe and easy payment technologies, he noted.
