64% of Egyptian increased their use of digital payment solutions, surpassing global rate: Mastercard

Doaa A.Moneim , Sunday 7 Aug 2022

Egyptians increased their use of at least one digital payment method in 2022, including digital cards, SMS payments, digital money transfer apps and instant payment services, according to Mastercard’s New Payment Index 2022 report.

Digital payment

 

The report expected this trend to continue going forward, with comfort and security key to growing adoption.

The index also showed that traditional payment methods in Egypt still have traction, with only 15 percent of consumers in country indicating they have used less cash.

“Adoption of a broader range of digital payment methods is accelerating in Egypt and the technology fueling the future of payments is already here according to Mastercard’s New Payment Index 2022. In addition to being aware of solutions like digital cards, BNPL (Buy Now Pay Later), and open banking, consumers in Egypt are increasingly and actively using these solutions in their everyday lives,” the report explained.

Meanwhile, the report found that 88 percent of people in Egypt have used at least one emerging payment method in 2022, 35 percent of which used tappable smartphone mobile wallets while 27 percent used a digital money transfer app, wile the remaining 24 percent used QR codes.

Consumers are also making purchases in increasingly diverse ways, including through voice assistant and through social media apps, according to the report.

“Egypt is a fertile ground for all that is innovative and digital. It is wonderful to see consumers in Egypt adopting different payment options such as payment apps and BNPL, and discovering more of the digital economy’s benefits. At Mastercard we will continue to work closely with the government, the Central Bank of Egypt, financial institutions and fintechs to make new digital solutions and emerging technologies seamless, secure and convenient,” said Adam Jones, country general manager, MENA central, Mastercard.

The report also indicated a high awareness of Buy Now, Pay Later (BNPL) installments as a budgeting instrument among users.

In this regard, the report explained that the majority of Egyptian consumers have heard of BNPL with 81 percent saying they are familiar with the concept, and half already comfortable using it.

Furthermore, the report found that the majority of consumers are seeking greater agility to optimise bill payments, prioritising control, flexibility, convenience and integrated payment technologies.

“Most consumers are open to direct account-to-account payment options, by linking their account to a merchant site for future purchases. 80 percent of Egyptian consumers using account-to-account payments, have maintained or increased their usage in the last year,” said the report.

In addition, two thirds of consumers (66 percent) agreed they are interested in a bill payment option that allows them to change the date they pay their monthly bills, mostly due to an irregular income.

Bill payment options that allow them to pay over a period using a buy now, pay later solution (69 percent) was also of interest, as well as automatic payments for their household bills (69 percent), according to the report.

The report also showed that more than half of Egyptian consumers (61 percent) feel safe using apps to send money to people or businesses from their phone, while four in ten (42 percent) are willing to share financial data information with apps to have access to payment tools that help them manage their money.

On a demographic level, the report found that young people used more digital purchases and payments, and their engagement in and usage of emerging digital payments engagement is accelerating at a faster rate than older audiences.

“In Egypt, Gen Z and Millennials are less likely to make in-person purchases and payments. They are proactively seeking out new payment methods, with 40 percent of Gen Z and Millennials likely to have obtained a new touch-free payment method (e.g. tap to pay card or wearable device) compared to only 26 percent of Gen X,” according to the report.

The number of e-wallets grew in the Egyptian market over the past three years to 26 million, up from nine million in previous years, with 23 banks introducing related services, the Central Bank of Egypt (CBE) said in March.

Subsequently, transactions using e-wallets increased to EGP 268 billion in value over the same course, up from EGP 88 billion in previous years, according to the CBE.

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