The Central Bank of Egypt (CBE) has unveiled new regulatory framework for payment service providers and system operators, establishing licensing requirements for both local and international companies operating within Egypt’s financial ecosystem. The regulations, issued under Law No.194 of 2020, grant existing payment institutions a 12-month transition period to apply for licenses while continuing their operations.
By the Numbers
- 12 months: Transition period for existing payment institutions to apply for licenses
- 6 categories: Types of payment services covered under the new regulations
- Law No.194 of 2020: The legal framework governing CBE and banking system regulations
Comprehensive Coverage of Payment Services
The new regulations encompass a wide range of payment-related activities within Egypt’s financial system. These include depositing and withdrawing cash from payment accounts, executing payment transactions and money transfers, and issuing payment instruments and electronic acceptance channels. The framework also covers sending and receiving remittances in Egyptian pounds, services related to creating payment orders, and payment account information services.
Licensing Requirements and Documentation
The CBE has established detailed requirements for obtaining prior approval and licensing for payment institutions. The regulations specify necessary documentation, licensing conditions, and minimum capital requirements that institutions must meet. Additionally, the framework outlines rules for license modification, required financial guarantees, and fees for inspection, auditing, and supervision activities.
Transition Period for Existing Operators
In a move to ensure business continuity, the Central Bank has provided existing payment institutions with a 12-month transitional period from the date of regulation issuance. During this time, current operators must submit their license applications to the CBE while being permitted to continue their activities. The final compliance decision will be made by the Board of Directors of the Central Bank.
Significance for Egypt’s Digital Payment Ecosystem
These regulations represent a significant step in formalizing Egypt’s rapidly growing digital payment sector. By establishing clear licensing procedures and operational requirements, the CBE aims to enhance consumer protection, ensure financial stability, and create a more transparent environment for both domestic and international payment service providers operating in Egypt.
Looking Ahead
The implementation of these regulations is expected to strengthen Egypt’s position as a regional fintech hub while ensuring proper oversight of payment services. As existing providers work toward compliance and new entrants navigate the licensing process, the Egyptian payment landscape is poised for more structured growth and innovation within a clearly defined regulatory framework.
Source: WAYA
