Visa, a global leader in digital payments, and Egyptian Banks Company (EBC), the operator of Egypt's national payment networks, have announced a strategic partnership. This collaboration, endorsed by the Central Bank of Egypt (CBE), marks a significant step towards boosting financial inclusion and economic growth in the country.
This initiative come 5 days after EBC's MasterCard announcement on February 7, 2024, aimed at improving Egypt’s digital payments ecosystem and fostering inclusive economic growth.
However, the new partnership with VISA, formalized through a Memorandum of Understanding (MoU), will leverage Visa's extensive global network and digital payment solutions alongside EBC's robust domestic infrastructure. This combined expertise will lead to the development of innovative solutions focused on two key areas:
1. Seamless integration with InstaPay: Visa-linked accounts held by Egyptians abroad will be seamlessly integrated with the popular InstaPay application, allowing for instant and secure fund transfers directly to registered beneficiaries in Egypt. This integration leverages the Instant Payments Network (IPN), ensuring fast and efficient transactions.
2. Expanding reach through phone number and username directory: The partnership will explore the use of IPN's phone number and username directory to facilitate remittances. This will enable senders to transfer funds directly to beneficiaries in Egypt using only their phone number or username, eliminating the need for traditional bank account details.
Engineer Tarek Raouf, Executive Chairman and CEO of EBC, echoed this sentiment, stating, "By combining our expertise with Visa's global reach, we are confident that we can create innovative solutions that will significantly benefit Egyptians living abroad and contribute to the economic development of our nation."
This collaboration is expected to benefit various stakeholders including:
- Egyptians abroad: Enjoy faster, easier, and more cost-effective money transfers to their loved ones in Egypt.
- Egyptian economy: Increased remittance inflows, boosting foreign exchange reserves and stimulating economic growth.
- Financial institutions: Access to new technologies and wider customer reach, leading to increased business opportunities.
The Visa-EBC partnership signifies a significant step towards a more efficient and inclusive financial ecosystem in Egypt. By leveraging the power of technology and collaboration, this initiative has the potential to empower millions of Egyptians and contribute to the nation's long-term economic prosperity.