The Central Bank of Egypt (CBE) announced that it has launched the tokenization of payment cards on mobile applications and Apple Pay service – marking a significant stride towards encouraging citizens to use their mobile phones for performing digital financial transactions.
The CBE said in a statement on Thursday that this move comes in line with its efforts towards aiding Egypt’s transformation into a less-cash society through the adoption of e-payments.
The bank said that the tokenization service was introduced in collaboration with the world’s leading digital payments’ providers (VISA and Mastercard), the National Payment Scheme “Meeza,” and smartphone manufacturer Apple Inc.
The launch was also coordinated with several banks, mobile payment application providers, and FinTech companies, to facilitate the integration of international and local systems towards the expansion of the digital payment services reach in Egypt, as well as boost customers trust in using electronic payments.
The Governor of the CBE, Hassan Abdalla said that “Launching the payment card tokenization service on mobile applications comes within the framework of the CBE’s keenness to stay abreast with the steadfast technological developments, and in continuation to the massive strides witnessed in the field of digital banking services in Egypt.”
“Currently, Egyptian citizens are benefiting 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.
Additionally, Deputy CBE Governor Rami Aboulnaga said that “The new service highlights the CBE’s commitment to strengthening the infrastructure of digital financial services, and providing advanced and secured e-payments, while offering various opportunities to deliver innovative financial solutions that meet customer needs and align with the latest global standards.”
The statement said that the National Cards Tokenization Platform will avail a digital version of the electronic payment card on mobile applications, which will enable customers to perform contactless purchases through Point of Sale (POS) terminals or via e-commerce websites and applications.
It added that transactions can be authenticated using bio-metric features (facial recognition, fingerprint, etc) which eliminate the need for card PINs.
This service will also enhance the customer experience by providing contactless, fast, and secure electronic transactions without requiring card information.
The CBE said that the launch of the card tokenization service will drive substantial growth in transactions through both POS terminals and e-commerce applications, which have witnessed remarkable advancements over the past few years.
By the end of 2024, the value of POS transactions will reach approximately LE640 billion, it noted, marking a growth rate of 280 percent compared to LE169 billion in 2021.
Similarly, the value of e-commerce transactions is expected to exceed LE180 billion by the end of 2024, compared to LE 29 billion at the end of 2021, signifying a growth rate of over 500 percent.
