Grace Ashiru
Visa has collaborated with the Egyptian Banks Company (EBC) to simplify and enhance the international remittance process for Egyptians residing overseas. This partnership aims to provide a seamless and efficient experience for individuals sending money across borders.
This news comes as a continuation of EBC’s recent collaboration with Mastercard on February 7, 2024. The partnership is focused on enhancing Egypt’s digital payments ecosystem and promoting inclusive economic growth.
This strategic collaboration between EBC and Visa will seamlessly integrate their technological infrastructure and digital financial services to deliver state-of-the-art digital wallet and electronic payment solutions.
This partnership aligns with the strategic goals of the Egyptian government and the Central Bank of Egypt (CBE) to promote and facilitate remittances from Egyptians working overseas.
The EBC, as the technological arm of the Central Bank of Egypt (CBE), plays a crucial role in managing and enhancing various domestic payment ecosystems in Egypt. This includes overseeing the Instant Payments Network (IPN) and the innovative InstaPay application.
The Central Bank of Egypt (CBE) has recently implemented a range of measures to regulate the usage of credit cards by Egyptians while they are abroad. These measures aim to ensure responsible and secure credit card transactions for Egyptians traveling overseas.
Customers who do not provide documented evidence of credit card use during their stay abroad within 90 days will face significant repercussions. These consequences include credit card suspension and being listed on a platform managed by the Egyptian Credit Bureau. It is crucial for customers to promptly provide the necessary documentation to avoid these adverse outcomes.
As per the memorandum of understanding (MoU) signed with the Egyptian Banks Company and the CBE, the primary objective of the project is to integrate a new service into the InstaPay application. This service will allow customers to easily transfer funds from their Visa-linked accounts, both within and outside of Egypt, directly into registered customers’ accounts or other customers through the Instant Payments Network (IPN).
The IPN, or Instant Payment Network, is a cutting-edge platform that provides seamless access to all accounts and enables real-time, instantaneous fund transfers. This innovative service empowers customers to effortlessly send money to bank accounts using various methods such as their account number, mobile number, and digital wallets. With the IPN, financial transactions have never been easier or more convenient.
The second project aims to establish partnerships with banks and financial institutions to streamline transfers to recipients in Egypt. This will be achieved by leveraging IPN’s phone number or username directory.
Leila Serhan, Visa’s Senior Vice President for North Africa, the Levant, and Pakistan, highlighted the pivotal role of remittances from Egyptian expatriates in contributing significantly to the national income and foreign currency inflow.
According to the World Bank, Egypt is currently ranked fifth among the largest recipients of remittances worldwide. However, there has been a decline in remittance inflows, with the amount decreasing from $15.6 billion to $12 billion during the first half of the fiscal year 2022/2023. This highlights the importance of examining the factors contributing to this decline and finding ways to address them.
