Egypt Poised to Become Digital Payments Leader after UAE

Egypt Poised to Become Digital Payments Leader after UAE

Time Stamp: February 12, 2024 4:56 AM
Source Node: 2478567

Digital
payments in the Middle East may soon undergo a significant transformation. This
is all thanks to the latest collaboration between Mastercard and the local
Egyptian bank, Al Baraka.

This
collaboration aims to elevate the banking experience in Egypt by introducing
new products and services focused on digital payments.

A New Mastercard Partnership
for Digital Payments in Egypt

Through the
collaboration with Mastercard, Al Baraka Bank aims to expand its financial
services, attract new customer segments and meet diverse customer needs with
tailored offerings.

According
to Abdel Aziz Samir, the Deputy CEO of Consumer Banking at Al Baraka Bank, this
partnership will advance digital transformation and financial inclusion in
Egypt. It promotes electronic payments and can positively impact the economy.

“Through
this collaboration, we aim to expand the range of financial services provided,
attract diverse customer segments, and meet all their needs through services
and products tailored specifically for them,” Samir added.

According
to Statista, the digital payments industry in Egypt has been dynamically
expanding in recent years and is projected to reach $20.6 billion this year. The
estimates show that the industry is predicted to grow by almost 11% every year,
ultimately reaching a value of $31 billion by 2028. For comparison, in the
United Arab Emirates, considered the Middle East’s financial hub, this value in
2024 is expected to be slightly higher, amounting to $30 billion.

Source: Statista

The
partnership is expected to redefine how people and companies handle finances in
Egypt. By leveraging Mastercard’s technology, Al Baraka Bank can set new
standards for customer convenience, payment security and financial innovation.

“This
collaboration will enable Al Baraka Bank to empower individuals and businesses
with world-class innovative offerings and payment solutions to embrace the
benefits of digital transactions by making transactions safe, seamless,
convenient, and rewarding,” added Khalid Elgibali, the Division President at Mastercard
for the MENA region.

TOP3 Digital Payment
Trends for 2024

The shift
towards digital payments is rapidly transforming the manner in which consumers
and businesses conduct transactions. Predictions suggest that the total value
of digital payments could exceed $14.78 trillion by 2027, driven by rapid
advancements in financial technology and the emergence of innovative startups
in key fintech centers like London. This evolution is expected to bring
significant changes to the payment landscape by 2024, potentially disrupting
the industry like never before.

In an
interview with Finance Magnates, Moshe Winegarten, the Chief Revenue
Officer of Ecommpay, highlighted the three key trends impacting the sector. The
popularity of Buy Now, Pay Later (BNPL) options saw a notable increase in 2023,
helping consumers navigate financial pressures. Despite new regulatory measures
boosting market confidence, there’s a call for further regulation, with the
BNPL sector projected to reach a value of $125 billion in the coming years.

Amidst the
challenges of inflation and economic instability in 2023, businesses have been
prioritizing expansion to tap into new markets and consumer bases, emphasizing
the need for localized payment solutions. Additionally, the fifth anniversary
of open banking in 2023 witnessed significant growth in its use and a trend
towards market consolidation, reflecting its increasing adoption.

“This
process has only just begun and we can expect to see this consolidation
continue well into 2024, it’ll even extend to orchestration providers as
merchants increasingly look for one solution that reduces friction, cost, and
potential points of failure,” the CRO of Ecommpay forecasted.

Digital
payments in the Middle East may soon undergo a significant transformation. This
is all thanks to the latest collaboration between Mastercard and the local
Egyptian bank, Al Baraka.

This
collaboration aims to elevate the banking experience in Egypt by introducing
new products and services focused on digital payments.

A New Mastercard Partnership
for Digital Payments in Egypt

Through the
collaboration with Mastercard, Al Baraka Bank aims to expand its financial
services, attract new customer segments and meet diverse customer needs with
tailored offerings.

According
to Abdel Aziz Samir, the Deputy CEO of Consumer Banking at Al Baraka Bank, this
partnership will advance digital transformation and financial inclusion in
Egypt. It promotes electronic payments and can positively impact the economy.

“Through
this collaboration, we aim to expand the range of financial services provided,
attract diverse customer segments, and meet all their needs through services
and products tailored specifically for them,” Samir added.

According
to Statista, the digital payments industry in Egypt has been dynamically
expanding in recent years and is projected to reach $20.6 billion this year. The
estimates show that the industry is predicted to grow by almost 11% every year,
ultimately reaching a value of $31 billion by 2028. For comparison, in the
United Arab Emirates, considered the Middle East’s financial hub, this value in
2024 is expected to be slightly higher, amounting to $30 billion.

Source: Statista

The
partnership is expected to redefine how people and companies handle finances in
Egypt. By leveraging Mastercard’s technology, Al Baraka Bank can set new
standards for customer convenience, payment security and financial innovation.

“This
collaboration will enable Al Baraka Bank to empower individuals and businesses
with world-class innovative offerings and payment solutions to embrace the
benefits of digital transactions by making transactions safe, seamless,
convenient, and rewarding,” added Khalid Elgibali, the Division President at Mastercard
for the MENA region.

TOP3 Digital Payment
Trends for 2024

The shift
towards digital payments is rapidly transforming the manner in which consumers
and businesses conduct transactions. Predictions suggest that the total value
of digital payments could exceed $14.78 trillion by 2027, driven by rapid
advancements in financial technology and the emergence of innovative startups
in key fintech centers like London. This evolution is expected to bring
significant changes to the payment landscape by 2024, potentially disrupting
the industry like never before.

In an
interview with Finance Magnates, Moshe Winegarten, the Chief Revenue
Officer of Ecommpay, highlighted the three key trends impacting the sector. The
popularity of Buy Now, Pay Later (BNPL) options saw a notable increase in 2023,
helping consumers navigate financial pressures. Despite new regulatory measures
boosting market confidence, there’s a call for further regulation, with the
BNPL sector projected to reach a value of $125 billion in the coming years.

Amidst the
challenges of inflation and economic instability in 2023, businesses have been
prioritizing expansion to tap into new markets and consumer bases, emphasizing
the need for localized payment solutions. Additionally, the fifth anniversary
of open banking in 2023 witnessed significant growth in its use and a trend
towards market consolidation, reflecting its increasing adoption.

“This
process has only just begun and we can expect to see this consolidation
continue well into 2024, it’ll even extend to orchestration providers as
merchants increasingly look for one solution that reduces friction, cost, and
potential points of failure,” the CRO of Ecommpay forecasted.

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