Egypt’s central bank launches smartphone-based contactless payments

Egypt’s central bank said on Sunday it has launched a new contactless payment acceptance service that allows merchants to accept electronic payments directly through smartphones and tablets, as part of its efforts to reduce cash usage and expand financial inclusion.

According to a statement from the Central Bank of Egypt (CBE), the service enables smart devices to function as payment acceptance points using so-called Soft POS applications, allowing merchants to receive payments from contactless cards without the need for traditional point-of-sale terminals.

Merchants can access the service by downloading a Soft POS application on their mobile devices, with card PINs entered securely on the device in line with internationally accredited security standards, the statement added.

“The new service aligns with the CBE’s progressive efforts to enable the infrastructure for the expansion of electronic payment systems and to facilitate financial transactions for citizens and merchants.” CBE Governor Hassan Abdalla said.  “This supports financial inclusion’s strides and enhances the access to electronic financial services anytime and anywhere.”

The move eliminates the cost of purchasing and maintaining traditional POS terminals for merchants and payment service providers, while enabling small and micro enterprises to join the electronic payments ecosystem, the central bank said.

The service is also expected to improve customer experience by offering faster and more flexible payment options, supporting Egypt’s broader transition toward a less-cash economy under its Vision 2030 development strategy.

The CBE said it had previously launched a pilot version of the service with a transaction limit of 600 Egyptian pounds ($12.72). The official rollout follows updates to the system and reflects the central bank’s “unwavering efforts” to keep pace with global developments in digital payments. It aims to equip merchants and payment service providers with flexible and low-cost e-payment acceptance solutions via smartphones.

Egypt has stepped up initiatives in recent years to expand electronic payments and reduce reliance on cash as part of wider economic and financial sector reforms.

Attribution: Amwal Al Ghad English