Egypt Prepaid Card and Digital Wallet Market Report 2022: A $5 Billion Market by 2026 - Partnerships are Rising to Launch Prepaid Cards

Newspaper Title: https://www.benzinga.com/

Newspaper Number:

Friday - 9 September 2022

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The prepaid card market (value terms) in Egypt increased at a CAGR of 14.9% during 2017-2021. Over the forecast period of 2022 to 2026, the market is expected to record a CAGR of 16.2%, increasing from US$2.75 billion in 2022 to reach US$5.00 billion by 2026.

In recent years, the digitalization of payment instruments created a significant growth opportunity for fintech companies in Egypt. Moreover, according to the Q4 2021 Global Prepaid Card Market Survey, the adoption of digital wallets has increased substantially since the onset of Covid-19. Additionally, government initiatives are boosting the demand.

The Central Bank of Egypt played an essential role in digitizing the economy. For instance, in September 2021, the bank approved licenses allowing the merchants to accept contactless payments from mobile phones.

Consequently, the new initiative has also helped the vast unbanked population of the country. Together with this, the Egyptian government is also planning to launch a single transit card, which may further support the growth of the prepaid card market in the next four to eight quarters.


Partnerships are rising to launch prepaid card in the Egyptian market

Egypt has a huge unbanked population, and various partnerships are witnessed to develop innovative digital solutions to cater to the monetary needs of these Egyptians.

  • In December 2021, Egypt-based fintech, Khazna partnered with Egypt-based e-payment end-to-end solutions provider Masria Digital Payments (MDP), and ADIB- Egypt bank to launch Khazna Meeza Prepaid Card in the country.
  • Customers will be able to access the new card through the Khazna app.
  • The prepaid card will be rolled out by the e-payment provider, MDP.

Fintech companies are collaborating with banks to offer digital payroll solutions

Egypt is home to many migrant workers, and many of them have no access to bank accounts. Therefore, companies face many challenges while paying salaries or any incentives. Therefore, fintech companies are launching innovative solutions for the payment of employees.
  • In August 2021, Dopay, an Egypt-based fintech, partnered with Bank ABC Egypt to offer digital payroll solutions to the corporate clients of Bank ABC.
  • The fintech can offer this digital payroll service after obtaining a banking license from the Central Bank of Egypt (CBE) through Bank ABC.
  • Companies will be able to pay their employees through the Dopay digital payroll and payment platform instantly.
  • Additionally, employees will be able to receive salaries via a prepaid debit card.

Mastercard is expanding its reach in the Egyptian prepaid cards market

With the increasing Covid measures, various companies are reshaping the business by integrating technology. The trend propelled various partnerships to emerge in the country to capture market share. For instance,

  • In May 2021, Mastercard partnered with Egypt-based payment app Telda to launch prepaid cards in the country.
  • The users will be able to access various app features, such as sending and receiving money through the app and the digital card, without any bank account.

The publisher expects that these alternative banking services offered by the virtual system will match the changing digital payments pattern of the consumers, resulting in the high adoption of such prepaid payment instruments in the country.