The Central Bank of Egypt is opening the door for payment facilitators in the country with new regulations governing their operation there.
According to Daily News Egypt, the bank has issued final regulations aimed at increasing the acceptance of electronic payments among merchants in Egypt.
The new regulations clarify the supervisory responsibilities of banks that choose to offer digital payments to businesses through PFs. They include requirements that will govern risk management practices, due diligence, transaction monitoring, contract terms, and adherence to anti-money laundering and terrorism financing laws. They also set an annual processing volume threshold of EGP 3 million for submerchants that process through PFs.
Egypt’s government has previously expressed support for shifting to a more digital economy and increasing financial inclusion as part of its Vision 2030, an initiative that includes focus on economic development.
Creating a supportive regulatory environment is just one of the central bank’s efforts to drive this shift. It has also demonstrated its commitment to financial inclusion by issuing QR code standards to enable the acceptance of QR codes across mobile payment systems.
The Egyptian government has been working with card networks to help drive the expansion of cashless payments in the country. In 2017, Mastercard highlighted its collaboration with the Egyptian government, announcing a plan to enable government employees to receive their salaries through Mastercard cards.
And just this week, the card brand presented at an event in Cairo where it reaffirmed its commitment to working with Egypt to drive digital payments there.
“Egypt is undergoing a technological evolution that offers significant potential to its economy and people. As a strategic partner of the Egyptian government, Mastercard is well positioned to help unlock this potential, and catalyze the adoption of digital payments in the country,” Magdy Hassan, Mastercard’s General Manager for Egypt and Pakistan, said.
“Through our successful public-private-partnerships with the Egyptian government, we are scaling up the latest in payments innovations, enabling financial inclusion for a significant part of the population and paving the way for a smart economy.”