By: FinTech Gate
Malak El-Baba, Visa’s Country Manager for Egypt, revealed that Visa is working closely with the Central Bank of Egypt and other key financial entities to bring the “TOKEN” project to fruition by April 2024. This initiative aims to revolutionize the way financial transactions are conducted by allowing payments to be made through mobile phones, thereby eliminating the need for plastic cards.
Collaboration in the Electronic Payment Ecosystem
Speaking to FinTech Gate, Malak El-Baba said that the project is still in the pipeline; however, great progress has been achieved. She pointed out that the project requires extensive preparation, especially since it is a joint project involving many players in the electronic payment ecosystem.
She clarified that this mechanism will operate through a mobile application linked to the user’s bank account, which then will work through the QR code on the payment machine.
Progress and Readiness of Banks
El-Baba confirmed that the Central Bank of Egypt is leading the project with a well-outlined plan and implementation stages, taking into account the readiness and technical capabilities of various banks. She emphasized that the adaptation to this new technology would be gradual, depending on each bank’s individual readiness, similar to previous payment acceptance processes.
El-Baba also highlighted the security and speed of “TOKEN” technology as a payment method that can be used anytime and anywhere, noting its suitability for all segments of the population, particularly the youth who account for a large proportion of the population in Egypt. The technology is expected to facilitate the digitization process, enabling merchants to expedite payment processes and better meet customer needs.
Advantages of “TOKEN” Technology
El-Baba highlighted that “TOKEN” technology offers distinct advantages, especially appealing to the younger demographic in Egypt. This technology facilitates a faster and more convenient execution of financial transactions, allowing young individuals to use their mobile phones for payments instead of relying on plastic cards or cash. This shift not only streamlines transactions but also aligns with the broader goal of accelerating digital transformation.
Moreover, El-Baba explained the inherent simplicity of “TOKEN” technology; requiring nothing more than a mobile phone — a device that nearly everyone possesses — sets it apart from traditional payment methods like cards, payment bracelets, or rings.
Commitment to Egypt and Digital Transformation
El-Baba further commented on Visa’s commitment to the Egyptian market, a market she described as large and economically promising with enormous potential. She proudly mentioned Visa’s recent expansion in Egypt, which included moving to a larger office and attracting young talent, as a part of investing in the country’s future.
Africa Fintech Accelerator Program
Aligning with the dynamic discussion around digital payment innovations, El-Baba highlighted the forthcoming conclusion of the inaugural Visa Africa Fintech Accelerator Program’s first cohort. After a comprehensive 3-month journey, the program is set to culminate in a Demo Day session, uniting the 23 pioneering fintechs that completed the program, alongside key players in the ecosystem (including enablers and financial institutions), potential investors (VCs, angels, corporates, etc.), and other significant contributors.
El-Baba proudly pointed out that an Egyptian fintech is actively participating in the first cohort’s Demo Day, emphasizing the country’s growing presence in the digital finance sector. This landmark event is scheduled for February 13th in Nairobi, marking the program’s inaugural Demo Day.
Furthermore, El-Baba announced the opening of applications for the program’s second cohort, reinforcing Visa’s commitment to fostering innovation. This initiative is designed to provide startups with mentorship, tailored training, and extensive networking opportunities, thereby enriching the fintech ecosystem in both Africa and Egypt.
She also emphasized that this program not only signifies Visa’s dedication to transforming financial services but also showcases the company’s commitment to promoting inclusive economic growth throughout the continent.
New products
El-Baba mentioned that Visa is excited to introduce new products very soon in cooperation with big banks in Egypt and targeting new segments. She also announced Visa’s plan to reveal these new products within two or three months, and their offering of great benefits to users. El-Baba stressed that Visa has really thought about what young people need and want, making sure these new products are easy to use, safe, and full of smart features.
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