OPay bids for digital banking licence in Egypt
Fintech company OPay announced on Sunday its plans to apply for a licence to set up a digital bank in Egypt, with a capital of $60 million.
Focused in the Middle East and Africa region, OPay currently operates in Egypt, Nigeria, and Pakistan, processing tens of millions of transactions a day.
The move is in line with OPay’s commitment to taking part in shaping a strong digital ecosystem in Egypt, supporting the state’s digital transformation plans, promoting financial inclusion, and adopting the best, fastest, safest financial technology solutions in the country.
Aiming to provide more innovative services and facilitate the banking transactions, the anticipated digital bank will work to provide lending, savings and card services via the internet without the need for customers to go to branches. This is in addition to OPay services to accept payments such as POS, digital payment gateway, and electronic wallets.
“We are excited to obtain a licence to establish a digital bank in Egypt, and to work hand in hand with the Central Bank of Egypt and all concerned authorities to start this step, which represents a new beginning to keep pace with global developments in the field of financial technology”. Mahmoud Khedr, Director of Business Development and Partnership at OPay, said.
OPay has five years of experience in the fintech sector in the countries it operates, reflecting “a real impetus towards achieving success and achievement in Egypt.” Khedr added.
OPay’s sales in the region amounted to more than $50 billion, while the number of users of OPay App in all countries reached about 30 million, he noted. “… we aspire to exceed these numbers in the current year and achieve unprecedented record rates.”
“We thank the leaders of the Central Bank for the initiatives it is launching to create a supportive climate for the financial technology industry, and for the unlimited support for the financial technology sector and the directives of its leaders towards advancing the digital economy and the great role it plays in developing and developing this sector.” Khedr concluded.
Earlier this month, the Central Bank of Egypt has issued new rules for licensing, registering, controlling, and supervising digital banks. The rules mandate that digital banks have a minimum issued and paid-up capital of two billion Egyptian pounds ($64.6 million) to practice all banking activities except financing large-scale businesses, a move that comes as part of Egypt’s efforts to promote financial inclusion. According to the new rules, the largest shareholder in digital banks must be a financial institution with a portfolio of relevant projects and activities and a stake of at least 30 percent of total capital.
