The Central Bank of Egypt has approved instant payment regulations that will enable people and businesses in the country to make instant payments between bank accounts via mobile phones.
Additionally, the apex bank announced a new network to help customers to manage their bank accounts and finalise transfers with any bank through a single app. This network is set for a launch later this year.
Central Bank of Egypt deputy governor Rami Aboul Naga was quoted as saying by Reuters: “Customers will be able through the new network to complete transfers within a few seconds, on weekdays and during official holidays using various electronic payment tools issued by Egyptian banks.”
The move is seen as part of Egypt’s ongoing efforts to bolster fintech investments and transform the way the country’s unbanked population carries out financial transactions.
In the last two years, the country introduced several new legislations and regulatory changes to this effect.
The latest changes are expected to bring in a number of new functions in Egypt’s payments space, including money transfers with an instant payment network (IPN) as well as phone number.
It will also facilitate the recharge of prepaid cards and electronic wallets in the country.
At present, peer-to-peer (P2P) transfers across cards are not available in Egypt. Instead, people transact their money through the process of automated clearing house (ACH), which requires banking details to be filled in for each transaction.
In September this year, Egypt approved the issue of licences that will allow merchants to accept contactless payments from their customers through mobile phones.