Visa has partnered with the Egyptian Banks Company (EBC), aiming to simplify and improve the international remittance process for Egyptians residing overseas, and offer them a seamless and efficient experience for individuals sending money across borders.
The EBC also collaborated with Mastercard on 7th February, focusing on enhancing Egypt’s digital payments ecosystem. This new partnership with Visa will build upon that, as it seeks to promote inclusive economic growth through innovative financial solutions.
The EBC-Visa collaboration will see both parties integrating their technological infrastructure and digital financial services to provide advanced digital wallet and electronic payment solutions. This aligns with the strategic objectives of the Egyptian government and the Central Bank of Egypt (CBE) to facilitate remittances from Egyptians working abroad.
As the technological arm of the CBE, the EBC plays a critical role in managing and enhancing various domestic payment ecosystems in Egypt, including overseeing the Instant Payments Network (IPN) and the InstaPay application.
In line with efforts to regulate credit card usage by Egyptians abroad, the CBE has implemented measures to ensure responsible and secure transactions. Customers failing to provide documented evidence of credit card usage within 90 days while overseas may face consequences such as suspension and inclusion in the Egyptian Credit Bureau platform.
Under the memorandum of understanding (MoU) signed with EBC and the CBE, the project aims to integrate a new service into the InstaPay application, facilitating easy fund transfers from Visa-linked accounts within and outside Egypt. Leveraging the Instant Payments Network (IPN), customers can transfer funds in real-time to registered accounts or other customers seamlessly.
The partnership also seeks to establish collaborations with banks and financial institutions to streamline transfers to recipients in Egypt, employing the use of the IPN’s phone number or username directory.
While Egypt ranks fifth among the largest recipients of remittances worldwide, there has been a decline in inflows. On this, Visa’s Senior Vice President for North Africa, the Levant, and Pakistan, Leila Serhan, has stressed the significant role of remittances from Egyptian expatriates in contributing to national income and foreign currency inflow.
Addressing this decline is crucial, as evidenced by a decrease from $15.6 billion to $12 billion during the first half of fiscal year 2022/2023, according to the World Bank. This highlights the importance of innovative solutions to bolster remittance flows and support economic development.
