The Egypt Mobile Payments Market is expected to register a CAGR of 19.3% over the forecast period, 2022-2027. The increasing growth of the E-commerce & M-commerce market and the gradual change in the number of loyalty benefits in a mobile environment are driving the development of the mobile payments market.
- Egypt is working with several global payment solution providers to make its new administrative capital the world's first "cashless city." As a result, the country is attempting to invest in and broaden the scope of Mobile transactions to support the growth of its retail industry.
- Growth in payments by online or smart devices has played a significant role in this transaction. The growing adoption of e-wallets and the increasing penetration of smartphones have also fueled the growth of mobile payments in recent years.
- According to the National Telecommunications Regulatory Authority (NTRA) of Egypt, deposits, cash withdrawals, and transfers were the top three most used services in transactions by subscribers of electronic wallets for mobile phones in the country. The authority also reported that Cairo, Giza, Alexandria, Daqahleya, and Sharqeya governorates accounted for 50% of mobile-based electronic wallet holders.
- Other important factors are the growing impact of mobile devices, not only for POS shopping but also for mobile checkout, and the integration of P2P payments into messengers and social networks. Especially in mobile-first countries, high convenience and usability on mobile devices are increasingly trending.
- COVID-19 pandemic has driven up demand for remote, mobile payment services, as Most of the banks in the country have turned to digital channels to provide their services to clients. Before the pandemic, Egyptian citizens were more reliable on cash. However, the pandemic brought a massive shift towards cashless/mobile payments more than ever.
Key Market Trends
Growing E-commerce Sector to Drive the Market
- In the Egyptian e-commerce market, enterprises are increasing, and the local market has expanded. In recent years, a rising number of new e-commerce start-ups coupled with growth in the e-commerce and banking sectors is bringing changes in the country's payment industry landscape. Such developments would trigger the usage of mobile-based payments in the country.
- Online grocery purchasing is becoming increasingly popular among small-scale retailers. Knockmart, founded in 2014, is a one-of-a-kind Egyptian online grocery chain that has quickly grown to become one of the region's largest of its kind. It is Cairo's first full-service online shopping experience, delivering groceries, household goods, and other lifestyle items.
- Furthermore, as part of Egypt's Sustainable Development Strategy, Vision 2030, the Ministry of Communication and Information Technology has launched a plan to promote cashless payments by promoting projects such as e-commerce and e-government, electronics design, and digital manufacturing.
- The Egyptian market has the highest population of internet users in the region, with 8% using the Internet regularly. The most common internet transactions are for electronics, entertainment, airline tickets, and fashion.
Increasing Number of Loyalty Benefits in Mobile Environment
- According to Datareportal, there were 95.75 million mobile connections in Egypt in January 2021, equivalent to 92.7 %of the total population and a 2.9 % increase over the previous year.
- The region's mobile market is expected to reach various milestones over the next five years, with more than half of its population subscribing to mobile internet services by 2023 and approximately 700 million mobile connections by 2025. These accomplishments would be supported by the operators' ongoing investments in the region's infrastructure.
- According to the National Telecommunications Regulatory Authority (NTRA) of Egypt, deposits, cash withdrawals, and transfers were the top three most used services in transactions by subscribers of electronic wallets for mobile phones in the country. The authority also reported that Cairo, Giza, Alexandria, Daqahleya, and Sharqeya governorates accounted for 50% of mobile-based electronic wallet holders. Although e-wallets adoption was across all age groups, it was particularly noticeable among the 26-50 age group.
- The region's increased mobile phone penetration is expected to pave the way for the region's digital payments market to expand significantly, resulting in increased adoption of financial services without a bank account.
Egypt Mobile Payments is moderately concentrated and dominated by a few major players like Mastercard., Visa Inc., PayPal Inc., and Samsung.And Apple Inc. These major players, with a prominent share in the market, are focusing on expanding their customer base across foreign countries.
- June 2022- FAS Labs, a franchise retailer in Saudi Arabia, has collaborated with vaIU to launch digital consumer finance solutions to build an integrated shopping platform that engages consumers throughout the entire purchase journey, from pre-purchase to post-purchase, also accelerating the geographical expansion of the MENA region.
- May 2021 - Mastercard (MA) has expanded its geographical expansion in Egypt by introducing its Telda Money App, which provides services that users can avail of without needing a bank account.
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