Exploring e-wallets in Egypt

Google, a giant tech solutions provider, announced on Saturday that it will launch Google Wallet services in 22 countries, including Egypt, in January 2025.

E-wallets are becoming increasingly popular, offering convenient and secure payment solutions for consumers and businesses alike.

With the recent introduction of Apple Pay and the anticipated launch of Google Wallet in 2025, the landscape for digital payments in Egypt is evolving rapidly.

Here, Ahram Online introduces a guideline for the evolution of e-wallets in Egypt, the functions and features that Apply Pay and Google Wallet provide, and how users can utilize them.

What is an e-wallet?
 

An e-wallet, or digital wallet, is a mobile application that allows users to store payment information, make purchases, transfer money, and manage transactions from their Android or Apple smartphones.

It provides a cashless experience, facilitating online and in-person payments seamlessly.

Current state of e-wallets in Egypt
 

E-wallets have increased significantly in Egypt recently due to increased smartphone penetration, internet access, and a push towards cashless and contactless transactions.

Various local and international players, such as Fawry, Vodafone Cash, and now Apple Pay, have a good presence in the domestic market.

Apple Pay launch in Egypt
 

Apple Pay is now officially available in Egypt, allowing users to make safe and easy payments using their Apple devices. Key features include the following.

• Contactless Payments: Users can pay at physical stores by tapping their iPhone or Apple Watch.


• Online Transactions: Apple Pay supports payments for online purchases through participating merchants.


• Integration with Apps: Users can pay for services within apps using Apple Pay, streamlining the checkout process.


• Fees: Three banks, Banque Misr, the National Bank of Egypt, and the Commercial International Bank (CIB), have used Apple Pay services on their application using credit prepaid and debit cards. They also plan to provide these services through other banks in Egypt. Apple charges a fee of 0.15 percent on every purchase, while banks do not charge this service.

Upcoming Google Wallet in 2025
 

When launched in Egypt in 2025 under the umbrella of Google Pay, Google Wallet will further enhance the digital payment landscape in the country. Expected features include the following.

• Storing Multiple Payment Methods: Users can add credit/debit cards and bank accounts for easy access.


• Peer-to-Peer Payments: Google Wallet will allow users to send and receive money from friends and family.


• Integration with Other Google Services: It will offer seamless payments across various Google platforms, making it easier to manage finances.


• Fees: No fees are applied.

Benefits of e-wallets
 

1.   Convenience: E-wallets provide a quick and easy way to make payments without needing cash or physical cards.

2.   Security: Most e-wallets use encryption and biometric authentication to ensure secure transactions.

3.   Transaction Tracking: Users can easily track their spending and manage budgets through their e-wallet apps.

4.   Promotions and Rewards: Many e-wallets offer users discounts, cash-back, and loyalty rewards.

In 2023, the Central Bank of Egypt (CBE) issued regulations governing payment card tokenization on mobile apps.

This action enabled banks and payment service providers to allow customers to make contactless payments with digital cards stored in mobile wallets, such as Apple Pay, Google Pay, and Samsung Pay.

The CBE announced in November that it plans to roll out its card tokenization system in the first quarter of 2025.

Moreover, the central bank launched payment card tokenization in December on mobile applications and the Apple Pay service.

With ongoing advancements in digital payment technology, Egypt is poised to become a key player in the evolving landscape of financial transactions.