Financial Crime World

Egypt’s Central Bank Unveils New Regulations to Boost Mobile Payment Services

Cairo, Egypt - The Central Bank of Egypt (CBE) has introduced new regulations aimed at enhancing the availability and security of mobile payment services in the country. These efforts are part of a broader strategy to promote financial inclusion and reduce cash transactions.

Key Regulations

  • Banks must inform consumers in advance about planned service outages, ensuring that customers are aware of any disruptions to their services.
  • The CBE emphasizes the importance of consumer data secrecy and confidentiality, mandating two levels of authentication for high-risk operations.
  • The regulations aim to strengthen dispute resolution controls and confirm that Egyptian law, regulations, and instructions govern mobile payment services.

Promoting Service Awareness

  • Public education campaigns are being promoted to raise awareness about mobile payment services among the general public.
  • The CBE has also emphasized the importance of service providers clearly communicating their terms and conditions to customers.

Industry Response

  • The banking sector has welcomed the new regulations, with many institutions already implementing changes to comply with the rules.
  • The CBE has established a National Payment Council to oversee the development of non-cash financial transactions in Egypt.

Fintech Sector Development

  • Mobile payment subscribers in Egypt have reached 10 million, with the sector expected to continue growing as more consumers turn to digital payments.
  • The CBE is committed to driving innovation and growth in the fintech sector through various initiatives.

Future Plans

  • Establish an innovation fund worth EGP 1 billion to finance “innovative ideas and projects” in the fintech sector.
  • Study the possibility of developing regulations for electronic identity checks (e-KYC) and exploring the use of blockchain technology for various use cases, including e-KYC.

Digital Banking Initiative

  • Plans are underway to establish Egypt’s first fully digital bank, allowing customers to conduct all transactions from their internet-connected devices.
  • A digital bank requires only a smartphone with a photo or fingerprint, eliminating the need to travel to a branch to open a new account.

Cybersecurity Measures

  • The CBE has established a Computing Security Incident Response Team (CSIRT) for the banking sector to reduce and prevent major cyberattacks.
  • The CSIRT will provide centralized coordination of IT security issues, respond to IT incidents, promote awareness of information security in the banking sector, and disseminate important information on security.

By implementing these regulations and initiatives, the CBE aims to create a more secure and efficient mobile payment ecosystem, ultimately promoting financial inclusion and driving growth in Egypt’s fintech sector.