Under the new regulations, banks will be able to roll out services that support these payments soon, though the statement does not specify a timeline
The Central Bank of Egypt (CBE) has issued new regulations allowing contactless card payments via mobile apps in a move that is expected to transform the banking industry.
The announcement, which was made in a statement released yesterday, will allow consumers to register cards of all kinds to their smartphone e-wallets, enabling them to make contactless and online payments.
Under the new regulations, banks will be able to roll out services that support these payments soon, though the statement does not specify a timeline.
The issuance of rules governing card coding services on electronic device applications will enable the activation of services from many international companies, including Apple Pay and Samsung Pay.
Tokenization will make it possible to register payment cards on smart device applications and use them to complete payments at electronic points of sale or make online purchases in a secure manner.
This move by the CBE is part of the government's broader effort to move towards a cashless economy, in line with the mandate of the National Council for Payments, which was set up by the president in 2017.
The launch of this new service in the Egyptian banking market is just one of several projects launched by the CBE to promote the transition to a society less dependent on cash.
These include mobile phone wallets and a real-time payment network, all leading up to the issuance of card coding services on electronic device applications, which banks are expected to provide to their customers in the coming years.
This latest development is expected to bring greater convenience and security to banking customers, who will now be able to use their smartphones as a full-fledged payments portal.