Sylvia Duruson
Egypt’s financial landscape is set to transform as the Central Bank of Egypt announces its plans to implement card tokenisation technology by 2025. This advanced security measure represents a crucial step in protecting the nation’s rapidly expanding digital payment ecosystem.
The technology works by generating unique digital identifiers for each transaction, effectively masking sensitive card information. When customers make online purchases, their actual card details remain secured within the bank’s systems, while merchants receive only encrypted tokens for processing payments. These tokens become worthless if intercepted by fraudsters, adding a robust layer of protection against cyber threats.
Egypt’s digital transaction volume demonstrates remarkable growth, with projections indicating a surge from EGP 7 trillion in 2021 to over EGP 22 trillion by late 2024. This exponential increase underscores the urgent need for enhanced security measures to protect consumers and maintain confidence in digital payment systems.
The tokenisation initiative places Egypt alongside global financial leaders embracing similar security innovations. Major card networks worldwide have recognized the critical importance of tokenisation, with industry giant Mastercard pledging complete tokenisation coverage for online transactions by 2030.
Across Africa, nations are strengthening their digital payment infrastructure. Nigeria’s launch of the AfriGo domestic card scheme in early 2023 exemplifies this continental push toward secure, independent payment systems. These developments reflect Africa’s broader commitment to building robust digital economies while reducing reliance on international payment networks.
The CBE’s tokenisation strategy addresses multiple objectives beyond security enhancement. By implementing this technology, Egypt aims to boost consumer confidence in digital payments, thereby accelerating the adoption of electronic transaction methods. This increased trust could significantly impact financial inclusion, making digital payment services more accessible to previously underserved populations.
Egypt’s financial institutions and merchants will benefit from reduced liability and lower fraud-related costs. The tokenisation system eliminates the need to store actual card data, decreasing the risk of data breaches and associated financial losses. This protection extends to consumers, who gain peace of mind knowing their sensitive financial information remains secure during online transactions.
The migration to tokenised payments positions Egypt as a regional leader in financial technology innovation. This advancement demonstrates the country’s commitment to building a resilient digital payment infrastructure capable of supporting future economic growth. As digital transactions become increasingly prevalent, Egypt’s early adoption of tokenisation technology establishes a foundation for sustainable financial sector development.
Looking ahead, the implementation of tokenisation technology promises to reshape Egypt’s payment landscape. The initiative supports the country’s broader goals of modernizing its financial infrastructure while ensuring the security and efficiency of digital transactions. Through this strategic move, Egypt strengthens its position in the global digital economy while providing its citizens with safer, more reliable payment options.
