Central Bank of Egypt:The Launch of Payment Cards Tokenization on Mobile Applications and Apple Pay Service

Cairo 12 Dec 2024:

In line with the Central Bank of Egypt’s (CBE) efforts towards the transformation to a less-cash society and the adoption of e-payments, the tokenization of payment cards on mobile applications has been launched and Apple Pay service is enabled successfully as the first phase, marking a significant stride in encouraging citizens to use their mobile phones in performing digital financial transactions.

The tokenization service was introduced in collaboration with the world’s leading digital payments’ providers (VISA and Mastercard), the National Payment Scheme “Meeza,” and the 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 boosting customers’ trust in using electronic payments.

In this regard, H.E. Mr. Hassan Abdalla – Governor of the Central Bank of Egypt, stated 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 benefitting from these services, and they are able to conduct their financial transactions easily with a reasonable cost, at any time, and from anywhere”.

Additionally, Mr. Rami Aboulnaga, Deputy Governor of the CBE, emphasized, “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 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. Transactions can be authenticated using biometric features (e.g.; facial recognition, fingerprint, etc.) which eliminates the need for cards’ PINs. This service will also enhance customers’ experience by providing contactless, fast, and secure electronic transactions without requiring the card information.

Noteworthy, 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 years. By the end of 2024, the value of POS transactions will reach approximately EGP 640 billion, marking a growth rate of 280% compared to EGP 169 billion in 2021. Similarly, the value of e-commerce transactions is expected to exceed EGP 180 billion by the end of 2024, compared to EGP 29 billion at the end of 2021, signifying a growth rate of over 500%.