Visa, a world leader in digital payments, has
announced the signing of a Memorandum of Understanding (MoU) with Egyptian
Banks Co. for Technological Advancements (EBC), the operator and developer of
national payment networks and ecosystems, in collaboration with the Central
Bank of Egypt (CBE). This strategic partnership is aimed towards enhancing the
scope of instant payments and streamlining the reception of international
remittances from Egyptian expatriates, leveraging Visa's cutting-edge digital
financial services and expertise, as well as the advanced technological
infrastructure managed by EBC, to introduce innovative solutions for electronic
payment services, digital wallets, and more.
The
MoU according to a statement released early this week establishes a
comprehensive framework for collaboration between both entities, with two key
projects aimed at improving and simplifying international transfers for
Egyptians living abroad. The first project proposes the addition of a service
to the InstaPay application, enabling customers to initiate transfers from
Visa-linked accounts outside Egypt, with funds seamlessly deposited into
registered customers' accounts or transferred to other customers via the
Instant Payments Network (IPN). The second project involves partnering with
banks and financial institutions to facilitate transfers to beneficiaries in
Egypt using IPN's phone number or username directory.
Commenting on the significance of this
collaboration, Leila Serhan, Senior Vice President for North Africa, Levant,
and Pakistan (NALP) at Visa, said: "Remittances from Egyptian expatriates play a pivotal
role in the national income and foreign currency inflow, providing vital
support to countless families in Egypt and abroad. Egypt's large diaspora,
spanning numerous countries, underscores its position as the fifth largest
recipient of remittances globally. The export of Egyptian talent and
expertise abroad not only generates foreign currency but also supports the
domestic economy."
"The MoU between
Visa and EBC, under the auspices of the CBE, is instrumental in leveraging
Visa's global network strength, unlocking the full potential of the Egyptian
payment ecosystem, and working closely with EBC to map a path towards financial
inclusion through the digitization of payments in Egypt. This collaboration
will enable the Egyptian market to benefit from Visa's global payment strategy,
share market insights, and access cutting-edge technological innovations," Serhan further added.
Engineer
Tarek Raouf, Executive Chairman and CEO of Egyptian Banks Co. for Technological
Advancements (EBC), commented, "The
Instant Payments Network (IPN), supported by the InstaPay application, has
brought about a significant transformation in financial inclusion rates since
its launch in March 2022. The application has empowered customers within Egypt
to securely make instant transfers between bank accounts, cards, and mobile
wallets. We are excited about maximizing the enormous potential of the InstaPay
application to enhance cross-border financial flows, in line with the vision of
the Central Bank of Egypt, which promotes leveraging digital transformation
opportunities for Egypt's economic growth. This application offers a secure and
immediate alternative for remittances, providing Egyptians abroad with a
convenient and secure option compared to other available channels."
"I am highly
optimistic about the collaboration between Visa and EBC to drive innovation in
cross-border digital payments, aiming to expand the user base of the InstaPay
application beyond Egypt by utilizing Visa's global presence. Both entities
will work together to provide innovative digital solutions to global users of
the application, ultimately increasing financial inflows into Egypt and
stimulating long-term economic growth”, he added.
This
collaboration between Visa and Egyptian Banks Co. for Technological
Advancements (EBC) falls within the framework of efforts aimed at maximizing
the utilization of remittances from Egyptians working abroad, aligning with the
strategy of the Central Bank of Egypt and the Egyptian government to encourage
and facilitate incoming remittances from Egyptians working abroad, particularly
in the Gulf and Arab Levant countries. Visa, as a global leader in digital
solutions for moving funds and electronic payments, holds the largest market
share in remittances to Egypt, especially in the Gulf region, which accounts
for the majority of total remittances to Egypt.
Furthermore,
the partnership aims to enhance user experience and expand the array of
services offered by leveraging the strong presence of Visa's global network
while relying on the unique instant transfer experience provided by EBC through
the InstaPay application. This allows customers to initiate transfers from
Visa-linked accounts outside Egypt, with the option of either adding the
transfer amount to registered customers' accounts or transferring to other
customers through the Instant Payments Network.
Working
alongside banks and financial institutions, a system is being developed to facilitate
transfers to beneficiaries in Egypt using IPN's phone number or username
directory.
Noteworthy
to mention Visa operates a network that ensures access to financial
institutions and banks across more than 200 countries worldwide, supporting 160
different currencies. This network enables users to conduct transfers easily,
swiftly, and cost-effectively. Visa adheres to all regulatory procedures and
standards to safeguard its services, in line with international best practices,
thereby ensuring the security of electronic payment channels and electronic
payment cards on a global scale.
By: Nana Appiah Acquaye