What's next for mobile wallets in Egypt?

Over recent years, Egypt has witnessed a significant surge in the adoption of mobile wallets, driven by increasing consumer demand for seamless transactions and proactive measures by the Central Bank of Egypt (CBE). As digital finance becomes more integrated into everyday life, Egypt's mobile wallet infrastructure is rapidly evolving, positioning the country as a leader in financial technology across the region.

By the end of 2023, Egypt had 39.4 million mobile wallet accounts, marking a significant milestone in the country’s journey towards financial inclusion. This number reflects an impressive year-on-year increase, spurred by initiatives aimed at making digital finance more accessible to the public. In the first nine months of 2023 alone, 36.7 million accounts were active, facilitating 96.2 million transactions worth nearly LE 11.64 billion. These figures underscore how mobile wallets have become essential tools for millions of Egyptians seeking easier and more secure financial solutions.

One of the standout features in Egypt’s mobile wallet ecosystem is the adoption of Request to Pay (R2P) transactions using QR codes. By September 2023, approximately 760,000 transactions were completed using this method, highlighting the increasing preference for contactless and digital payments. The shift towards contactless payments is part of the CBE’s broader strategy to modernize the payment landscape, which is also evident in the development of "tap on phone" systems.

The Central Bank is also focusing on enhancing the security of digital payments through tokenization. This technology replaces sensitive card information with unique digital tokens, providing users with a secure way to pay without exposing their actual card details. Major global applications like Apple Pay, Google Pay, and Samsung Pay are built on this technology. The CBE’s approval of new regulations to introduce these services in Egypt opens doors for global providers to enter the market, provided they obtain the necessary licenses.

In addition to mobile wallet initiatives, the CBE has expanded the number of electronic point-of-sale (POS) devices across Egypt. Through various incentives, banks have been encouraged to deploy more POS terminals, increasing the total number to over 1 million nationwide. This expansion supports the broader vision of creating a more cashless society, where digital transactions become the norm.

The rapid growth of mobile wallets in Egypt is more than just a technological trend; it is a critical component of the country's financial inclusion strategy. By offering accessible digital payment solutions, mobile wallets are bringing more people into the formal economy, providing them with tools that were previously out of reach. Whether for day-to-day transactions, bill payments, or even receiving remittances, mobile wallets are transforming how Egyptians manage their finances.

As Egypt continues to refine its digital payment infrastructure, the possibilities for mobile wallets are vast. With the final stages of contactless payment development underway and global providers entering the market, the next few years will likely see even greater adoption. For businesses, consumers, and the economy at large, the shift towards mobile wallets signifies a step towards a more connected and financially inclusive society.

The rise of mobile wallets in Egypt is not just a reflection of technological progress but also a testament to the power of strategic planning and innovation. As the country continues to embrace digital finance, the future of money management in Egypt looks increasingly mobile and accessible to all.