In a move set to expedite the remittance landscape, the Central Bank of Egypt (CBE) is gearing up to introduce the “Instapay” application, facilitating money transfers from Egyptians living overseas. This initiative, expected to launch within the next two months, aims to streamline the remittance process, enhancing convenience and efficiency for millions of Egyptians working abroad.
Ehab Nasr, Assistant Deputy Governor for Banking Operations and Payment Systems at the CBE, announced at the recent “PAFIX” exhibition for electronic payment technology that Egyptian banks have secured the requisite approvals to initiate this service. A critical component of this rollout involves completing the integration between Egyptian and Gulf banks, ensuring smooth transactions across borders, a process that will start next month.
The service will not be limited to traditional banking institutions. Financial technology companies are also set to play a pivotal role, creating an integrated system that broadens access and functionality for users.
Remittances remain a cornerstone of Egypt’s economy. According to the World Bank, Egypt received approximately $29.6 billion in remittances in 2020, a figure that climbed to $31.5 billion by 2022. With the advent of digital solutions like Instapay, these numbers are projected to grow further, providing a crucial influx of foreign currency.
The Instapay platform has already attracted substantial user interest, with 11.5 million customers since its initial phase. The service aims to facilitate 1.5 billion transactions by the end of 2024, handling a total of 2.6 trillion Egyptian pounds.
Dr. Layla Hassan, a financial analyst specializing in digital payments, remarked, “The introduction of Instapay is a strategic move that aligns with global digital payment trends. It offers a secure and user-friendly platform for remittances, potentially increasing the volume of transfers significantly.”
Additionally, the CBE is exploring the possibility of enabling transactions in Arab currencies, such as the Emirati dirham and the Saudi riyal, further strengthening economic ties within the region. However, this aspect is still under consideration with no immediate decisions made.
Nasr also highlighted several technological enhancements slated for rollout. By the end of the year, merchants will be able to accept payments via QR codes, and the activation of POS (Point of Sale) software is planned for the next year. Furthermore, a card coding system presented to the Prime Minister will soon allow for contactless phone-based money transfers, marking a significant leap in Egypt’s digital payment infrastructure.
The Central Bank of Egypt’s Instapay initiative is poised to transform the way remittances are handled, offering a modern, efficient solution for Egyptians abroad. As these technological advancements take root, they promise to bolster Egypt’s economy by facilitating greater inflows of foreign currency and enhancing the country’s financial ecosystem.