Egypt’s c. bank launches cell phone payment card tokenisation
The Central Bank of Egypt (CBE) has launched the tokenisation of payment cards on mobile apps and enabled Apple Pay as the first step towards promoting digital financial transactions.
This step aligns with the CBE’s initiatives to transition to a cashless society and promote e-payments, representing a major advancement in encouraging individuals to utilise their mobile phones for digital financial transactions.
The tokenisation service was introduced in collaboration with the world’s leading digital payments’ providers (VISA and Mastercard), the National Payment Scheme “Meeza,” and the smartphone manufacturer – Apple Inc.
The launch was coordinated with banks, mobile payment providers, and FinTech companies to expand digital payment services in Egypt and build customer trust in electronic payments.
CBE Governor Hassan Abdalla highlighted the significance of introducing payment card tokenisation on mobile apps. This move reflects CBE’s dedication to staying current with technology and improving digital banking services in Egypt.
“Currently, Egyptian citizens are benefitting from these services, and they are able to conduct their financial transactions easily with a reasonable cost, at any time, and from anywhere,” he added.
Rami Aboulnaga, Deputy Governor of the CBE, emphasised the importance of the new service in enhancing digital financial infrastructure and providing secure e-payment solutions that align with global standards. The CBE is committed to delivering innovative financial solutions that cater to customer needs.
The National Cards Tokenisation Platform will offer a digital version of the electronic payment card on mobile apps, allowing customers to make contactless purchases through Point of Sale (POS) terminals or online.
Biometric authentication can be used for transactions, eliminating the need for PINs and providing fast, secure, and contactless electronic payments without requiring card information.
Noteworthy, the launch of the card tokenisation service will drive substantial growth in transactions through both POS terminals and e-commerce applications, which have witnessed remarkable advancements over the past years.
By the end of 2024, the value of POS transactions is expected to reach around 640 billion Egyptian pounds, showing a significant growth rate of 280 per cent from 169 billion pounds in 2021.
Similarly, the value of e-commerce transactions is expected to exceed 180 billion pounds by the end of 2024, compared to 29 billion pounds at the end of 2021, signifying a growth rate of over 500 per cent.
Attribution: CBE
Subediting: M. S. Salama
