The Central Bank of Egypt (CBE) is set to implement card tokenisation by 2025, marking a pivotal advancement in securing the nation’s digital payment ecosystem.
The CBE has reportedly been actively working on building a robust digital infrastructure since 2016, which contributed to increasing financial inclusion from 27 per cent to 71.5 per cent. This was accompanied by a significant growth in digital payments, with over 65 million electronic payment cards and 47 million mobile wallets currently in circulation.
Tokenisation replaces sensitive card details with unique digital identifiers during transactions, significantly reducing fraud risks and safeguarding consumer data. As Egypt’s digital transactions are projected to surpass EGP 22 trillion by the end of 2024, up from EGP 7 trillion in 2021, the need for robust cybersecurity measures is more critical than ever.
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By rendering card details inaccessible to unauthorised entities, tokenisation fosters greater trust in digital payment systems, enabling broader adoption. This initiative reflects global trends in fintech innovation and cybersecurity, where leading card networks such as Mastercard, have committed to implementing tokenisation for all online transactions by 2030, underscoring a global push to minimise fraud risks.
In 2021, there was a record of 1 billion transactions worth 7 trillion Egyptian pounds, and it is expected to reach 6 billion transactions worth 22 trillion pounds by 2024. In 2023, CBE issued regulations for payment card tokenisation to drive digital payments innovation and support the transition to a cashless society.
Regionally, African nations are also prioritising digital payment security. In early 2023, Nigeria’s Central Bank introduced AfriGo, a domestic card scheme aimed at enhancing financial inclusion and reducing reliance on international card networks. These efforts demonstrate a shared commitment across Africa to modernise financial infrastructures and secure the rapidly expanding digital economy. Tokenisation plays a crucial role in ensuring the safety of electronic payments, now a cornerstone of commerce on the continent.
By adopting tokenisation, Egypt is not only bolstering security but also building consumer confidence, vital for driving the adoption of digital payment systems.By
minimizing the risk of data breaches and fraud, tokenization fosters greater trust among consumers, encouraging wider adoption of digital payment methods.
This step aligns with the nation’s broader financial inclusion objectives, making secure and convenient payment options accessible to a larger population. Egypt’s commitment to a safer, more inclusive digital financial ecosystem serves as a model for other countries in the region.
Overall, the CBE’s initiative to implement card tokenization is a strategic move that will significantly bolster Egypt’s digital payment ecosystem, fostering greater security, convenience, and innovation in the country’s financial landscape.
