Payment by card in Egypt

In 2023, Egypt’s online commerce sees a notable preference for credit card payments and cash on delivery​1​. This trend reflects a gradual shift towards digital payment methods, although cash remains dominant in Egyptian society. Credit cards facilitate online transactions, offering a more secure option compared to cash on delivery, which poses risks in terms of security and efficiency.

The engagement between local financial institutions and international payment solution providers is crucial to promote digital payment culture. For instance, the partnership between Mastercard and Banque Misr in March 2023 aims to strengthen the formal economy and promote the use of digital payment technologies​2​.

The annual value of card transactions, standing at $4.2 billion in 2021, is on the rise with a projected Compound Annual Growth Rate (CAGR) of over 10% for the subsequent years​3​. This growth is indicative of the growing acceptance of card payments in the online commerce sector.

The uptake of card payments in online commerce in Egypt is a positive sign, indicating a gradual transition towards more secure and efficient digital payment methods, beneficial for both online consumers and merchants.

Launched by the National Payments Council, the Meeza scheme is a national payment card system in Egypt.

Local actor: Meeza

Meeza logo

Payment by cash payments

In 2023, cash payments continue to play a pivotal role in Egypt’s e-commerce landscape. As of 2022, 57% of online transactions were conducted in cash, showcasing a significant reliance on this traditional payment method​1​. This inclination towards cash isn’t isolated to Egypt. Similar trends are observed in other African nations like Morocco and Kenya​2​. Cash on delivery and credit card payments remain the top preferred methods among Egyptian online shoppers into 2023​3​. However, a shift is on the horizon. The COVID-19 pandemic has accelerated the transition towards digital payments. A 2021 survey revealed a substantial drop in cash on delivery payments, hinting at a growing trust in digital transactions among Egyptian consumers​4​. Despite global strides towards digitalization, cash payments retain a firm grasp on Egypt’s e-commerce payment landscape, at least for now.

Local actors: Easycash, Fawry, Aman

Easycash logo Β Fawry logo Β Aman logo

Payment by bank transfer

In 2023, bank transfers and Instant Payments are central to Egypt’s e-commerce payment ecosystem. The Central Bank of Egypt (CBE) raised the limits for transactions in the Instant Payment scheme promoting digital payment methods for e-commerce transactions​1​.

In 2022, the launch of InstaPay, Egypt’s first licensed Payment Service Provider (PSP) by the CBE, marked a significant shift in the digital payment domain. This app enables money transfers between bank accounts or digital wallets, easing online payments for consumers and merchants​2​.

The Instant Payment Network (IPN) introduction has allowed bank customers to manage accounts and finalize transfers with any bank through a single app. This facilitates real-time transactions even during official holidays. The 24/7 instant transfer services notably enhance online shopping convenience, enabling payments at any time without delay​3​​4​.

Local actor: InstaPay

Payment by installment and BNPL

In 2023, the BNPL (Buy Now, Pay Later) and installment payment sector has seen remarkable growth in Egypt’s e-commerce arena. The BNPL payments are predicted to rise by 49.4% on an annual basis, reaching a value of US$1.7 bn. This growth is part of a medium to long-term trend, with a Compound Annual Growth Rate (CAGR) of 29.0% expected from 2023 to 2028, indicating a strong outlook for the BNPL industry in Egypt​1​. Another source echoes this growth, projecting a 52.3% annual increase, and estimating the BNPL payments to reach US$1,645.0 million in 2023​2​​3​.

BNPL in Egypt allows customers to select an installment plan that can range from 6 to 60 months without requiring any down payment. This flexibility is likely one of the factors contributing to its growing popularity among Egyptian consumers. There’s an anticipation for more online retailers to introduce BNPL as the payment method continues to gain traction​4​.

Local actors: Sympl, ValU, Khazna, Fawry, mnt | Halan, Shahry

Sympl logoΒ  ValU logoΒ  Khazna logoΒ  Fawry logo Β mntHalan logo Β Shahry logo

Payment by digital wallet and X-Pay

In 2023, digital wallets have become a cornerstone for online transactions in Egypt. The Central Bank of Egypt (CBE) played a pivotal role by issuing regulations for payment card tokenization on mobile apps. This move enabled banks and PSPs to offer payments via digital cards stored in mobile wallets 1​.

Local actors: MyFawry, CIB Smart Wallet, QNB ALAHLI E-Wallet, Etisalat cash

Fawry logoΒ  CIBSmartWallet logoΒ  Β EtisalatCash logo


 

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