Egypt Market Study

2018
 Egypt: Market indicators at a glance
Total Population
Projected Nominal GDP
[2018 Est.]
[2018]
99.4M $247B
GDP Per Capita
[2017]
Adults (age 15+) Projected Real GDP $2,483
[2018 Est.] Growth [2018]
66.2M 5.2%

Mobile Smartphone
Connections1 Penetration
Internet
Penetration 95.7M (96%) 35.6M (37%)

50% Unique Mobile Mobile Internet

(49.2M) Subscribers2 Users2

64.9M (66%) 46.08M (47%)

A positive macroeconomic environment, accelerating GDP growth, favourable demographics (over 65% of the population is under 35) and
increasing internet and mobile broadband users represents significant opportunities for digital payments growth in Egypt
Source: UN World Population; IMF’s Regional Economic Outlook: Middle East and Central Asia, May 2018; World Bank’s WDI; GSMA; Internet World Stats; ITU;
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Copyright FSS 2018 Note(1): MCIT – June 2018 data; (2) Hootsuite
 Key retail banking indicators in Egypt
Public Sector Banks (3) Foreign Commercial Banks (18) 38
The National Bank of Egypt Al Ahli Bank Of Kuwait Total Number of Banks in Egypt
Bank Misr Emirates NBD
Banque du Caire Qatar National Bank Al Ahli (QNB ALAHLI) 4,118 Bank Branches
Private Commercial Banks & Specialized Banks (14) Credit Agricole Egypt (CAE)
Of which, 1,017 are village banks
Commercial International Bank (CIB) Blom Bank
Bank of Alexandria Bank Audi
The United Bank Ahli United Bank 23.1 Thousand Banking Density
Arab African International Bank (AAIB) National Bank of Kuwait - Egypt (NBK-Egypt) (Population in thousands per banking unit)
Egyptian Gulf Bank S.A.E Union National Bank Egypt (UNB-E)
Arab International Bank (AIB) HSBC Bank Egypt 33% (21.4M) Banked Population
Suez Canal Bank S.A.E Arab Banking Corporation 43.5M Unbanked Population in 2017
Société Arabe Internationale de Banque (SAIB) S.A.E National Bank of Abu Dhabi
Arab Investment Bank (AIBK) Citibank 15.83M Debit Cards1
Housing and Development Bank S.A.E Arab Bank Plc
10.77M Prepaid Cards1
Agricultural Bank of Egypt Mashreq Bank
Export Development Bank of Egypt National Bank of Greece 4.36M Credit Cards1
Industrial Development & Workers Bank of Egypt Attijariwafa Bank Egypt
Egyptian Arab Land Bank ABC Bank 11,754 ATMs1
Domestic Islamic Banks (1) Foreign Islamic Banks (2)
Faisal Islamic Bank of Egypt Abu Dhabi Islamic Bank (ADIB) 72,503 POS Terminals1
Al Baraka Bank of Egypt
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Copyright FSS 2018 Source: Central Bank of Egypt Annual Report 2016/2017 and Monthly Statistical Bulletin, Sept 2018; Global Findex; Note(1) As of June 2018
 Growth in financial cards is indicative of the rising
popularity of cashless payments
Total Number of Financial Cards in Egypt (Millions) Top 5 Banks’ Share of Financial Cards (June 2018)
Total Cards 23.20 24.95 30.30 30.96 Debit Cards Credit Cards Prepaid Cards
4.7 16% 4.4 14%
14% 3.9 16%
3.3 10.4 34% 10.8 35%
7.6 33% 8.6 35% 60.3% 63.1% 85.8%

15.14 50% 15.8 51%

12.29 53% 12.08 49%

2015 2016 2017 June'18

Debit Cards Prepaid Cards Credit Cards Top 10 Banks’ Share of Financial Cards (June 2018)

Debit Cards Credit Cards Prepaid Cards

Payment cards in Egypt registered a positive growth of 10% during the
period between 2015 to 2018

According to the CBE’s recent report, the five largest banks accounted 73.2% 68.4% 88.5%
for 60.3%, 63.1% and 85.8%, respectively, of the total debit cards,
credit cards and prepaid cards in circulation in June 2018

Source: Central Bank of Egypt Annual Report 2016/2017 and Monthly Statistical Bulletin, Sept 2018
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Copyright FSS 2018 Note(1) As of June 2018; CBE has not mentioned the Top 5 banks and Top 10 banks in its report
 Number of POS terminals is on the rise
Total Number of POS Terminals in Egypt

72,503
69,455
69,455
66,608
63,958
63,958
62,764
62,724
60,774
59,359
59,359
57,627

Total number of POS terminals grew by 5.6% y-o-y in 2016

(62,764) and 6.1% y-o-y in 2017 (66,608)

By June 2018, the number of POS terminals surged by 8.9%

to 72,503 – indicating the growth in digital payments

As of June 2018, top 5 banks control 96% of the POS

terminal distribution in Egypt

2015 2016 2017 June'18

Total Top 10 Banks Top 5 Banks

Source: CBE - Central Bank of Egypt Annual Report 2016/2017 and Monthly Statistical Bulletin, Sept 2018
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Copyright FSS 2018 Note: CBE has not mentioned the Top 5 banks and Top 10 banks in its report
FinTech Landscape in Egypt
 Digital financial service indicators in Egypt
16 of the 38 banks in Egypt 3,900 ENPO branches1
Offer full service e-banking and mobile financial services with 873 licensed micro-finance institutions (MFIs) and NGOs with
133,651 mobile payment agents (incl. branches and POS) – CBE 848 branches (total of 1,721)

32 of the 38 banks in Egypt 44 Million Egyptians

Offer internet banking services to 1.4M registered accounts with Are eligible to enter the formal banking and financial services
transaction volumes of 128M sector – according to the World Bank

9.4 Million Mobile Payment Users 4.6 Million Cards

Represent a monthly transaction volume of 1.78M and value of were issued by 2,800 governmental institutions for payroll and
USD 41M (EGP 727M) 7M cards for pensions

Mobile payments in Egypt operate on a bank-led model and mobile network operators (MNOs) have the greatest market share. Mobile wallet
payment apps are offered by a number of banks and by three MNOs (Etisalat, Vodafone and Orange)
In 2017, the number of mobile payment subscribers in Egypt reached 10.5M (of which, 9.4M are unique users) with a 30% annual growth rate

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Copyright FSS 2018 Source: CBE - The Central Bank of Egypt; Note: (1) ENPO - Egyptian National Post Organization
 Growth in FinTech ecosystem paves the way for digital
payments

According to Invyo, there are currently over 40 players in the Egyptian fintech ecosystem, including 16 start-ups, 9 FIs, incubators, hubs, investors
and micro-finance institutions. The most mature sector is the provision of payment services, mobile cash and smart wallets
Payments, one of the most crowded fintech segments in Egypt, has a number of start-ups including Fawry, PayMob, Masary, DoPay and Vapulus
The growing number of FinTech start-ups in Egypt is being driven by the Governmental Institutions and the Central Bank of Egypt’s efforts to
foster the growth of digital banking services and e-payments, thereby moving towards a cashless economy
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Copyright FSS 2018 Source: X
 Banks in Egypt embrace fintech to drive financial
inclusion through digital innovations
In Egypt, 50% of the population is below 25 years old and two-thirds of the population (44M) still have no access to formal financial services

With high penetration of mobile phone ownership in Egypt, fintech innovation opportunities lies in low-cost mobile banking solutions. Banks in
Egypt are embracing fintech to launch innovative banking services and support financial inclusion initiatives:-

Many bank-fintech partnerships have led to the launch of e-wallet services, including Phone Cash (Fawry and National Bank of Egypt), Orange
Money (with BNP Paribas), Vodafone Cash (with Housing and Development Bank), and Flous (Etisalat and National Bank of Egypt)

CIB and Orange Business Services Digital Lab collaborated to increase financial inclusion through low-cost mobile banking solutions for
underbanked and unbanked population, create new and innovative solutions for the banked population, increase KYC via authentication and
validation solutions (e.g. biometrics and blockchain), and IT agility by providing SaaS digital banking solutions and next-gen network strategies

PayFort has been active since 2014 supporting merchant acceptance to improve e-commerce across Egypt, partnering with Fawry (an e-payment
aggregator), the Egypt Post, and all the major banks in Egypt to facilitate payment collection at any of those partners’ agents or branches

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Copyright FSS 2018
 Digital payment solutions by FinTech players (1/3)
Company Name Description
Fawry is a e-payment aggregator start-up, the company through its
Fawry electronic payment platform/network offers payment solutions for
banks and merchants.
The company’s solution connects consumers, merchants,
governments, and financial institutions on a consolidated gateway
which is accessible via multiple channels.
Masary operates as an electronic payment gateway in Egypt. The
Masary company operates as a payment facilitator and aggregator, it owns
and operates 60,000 payment points across all of Egypt
The Masary payment platform can be connected to any payment
network and it offers real time transaction processing services.
PayMe offers payment solutions to both businesses and consumers
PayMe in Egypt in partnership with the National Bank of Egypt
PayMe is an online platform (PayMe Store), which enables
merchants to receive online payments from their customers
without the need of a website/mobile app. PayMe supports
payment options such as: Cash, Credit Card, collection from home,
and mobile wallets.
Copyright FSS 2018
Bank Partnership Details
Mashreq Bank Egypt - Partnered with Fawry to facilitate
credit card payments for its customers. As per the
partnership Mashreq customers can easily settle credit card
payments at over 20,000 Fawry outlets across Egypt, while
Fawry provided customers secure electronic bill presentment
and payment services solutions.
In 2016, the company entered into a contract with 12
Egyptian domestic banks to provide electronic payment
services via mobile phones.
NA
National Bank of Egypt - PayMe, partnered with National
Bank of Egypt, to facilitate payment operations for merchants
and business. It also enables them to accept card payments
through QR code.
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 Digital payment solutions by FinTech players (2/3)
Company Name Description
Dopay provides cloud-based payroll service, which enables
Dopay employers to electronically transfer salary payments to their
employees (via the dopay account).
The company also offers employers, Visa Card issuing services and
the dopay business app to manage salary payment/account
activities.
Vapulus is a mobile payment service provider, offering online and
Vapulus mobile payment solutions to both users and businesses.
It allows the users to pay bills, send or receive money, shop off and
online, and transfer money globally via a mobile app. Users can link
their Vapulus app with debit card, credit cards, or e-wallet
accounts
For businesses Vapulus offers payment gateway solutions to both
online & in store merchants via a single app.
Bee Smart Payment Solutions, provides Payment Solutions for a
Bee multitude of services. The company offers end users with payment
options to pay various service providers (mobile operators,
internet providers, etc).
The company’s payment solutions are powered by its “Cash
Collector” global platform, developed by the R&D Team of
Technobiz Equipment.
Copyright FSS 2018
Bank Partnership Details
Dopay end users (employees) have access to; the dopay app,
Visa Payments using the employer issued Visa Card, ATM
transaction capabilities within Egypt, and SMS notification
services.
Dopay accounts, are being powered by Barclays Egypt and
Visa.
As of Sep 2017, Vapulus was in negotiation with three major
banks in the Egyptian market, the negotiation was around
cooperation with the banks for electronic payment solutions.
The company aims to be partners with 6 banks in the near
future.
Bee Smart Payment Solutions has partnered with 16 Mobile
Operators, 15 Internet Service Providers and 7 Egyptian
banks to offer payment solutions to their end customers.
Bee is a partnership based firm formed by the collaboration
of, TBE for Payment Solutions and Services S.A.E. working
under the brand name “Bee”. Bee acts as an Middle East hub
for Technobiz Equipment PTL LTD.
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 Digital payment solutions by FinTech players (3/3)
Company Name Description
PayMob is an electronics payments solutions provider converting
PayMob cash payments to electronic, using existing payment channels such
as credit card, mobile wallet and cash.
The company provides solutions for both sides of payment,
issuance and acceptance. It develops white-labeled mobile wallet
products for mobile network operators and banks, on the
acceptance side it enables merchants to accept payments from
their customers using various payment channels.
As of June 2017, PayMob processed over EGP3.8 billion through
different payment products.
Copyright FSS 2018
Bank Partnership Details
Arab African International Bank (AAIB) – PayMob’s core
services include: online payments, mobile wallet payments,
in-store payments, standalone checkout to enable users to
pay using credit/debit card, and card on delivery. The
company has partnered with AAIB for cash on delivery
service.
PayMob also launched Accept, a payment aggregator
providing online and offline businesses with payment
acceptance services; Accept has partnerships with AAIB,
MasterCard, Egyptian Banks Company and Vodafone.
In 2018, Accept Payments was spun off as a separate entity, it
offers a single platform for merchants to handle multiple
payment transactions.
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Merchant Acquiring Business Trends
– POS and eCommerce Solutions
 Top merchant acquirers in Egypt
POS Terminals Merchant Outlets Transactions Value Transaction Volume
Merchant Acquiring Banks in Egypt
in 2017 in 2017 (Millions) in 2017 (Millions) in 2017
NA
Qatar National Bank Al-Ahli S.A.E (QNB ALAHLI) 18,660+ Note: over 1,000 merchant NA NA
outlets accept mVisa

Banque Misr 14,577 16,413 US$ 0.51B (EGP 9.08B) NA

Commercial International Bank S.A.E (CIB) 13,142 8,399 US$ 17.1M (+9% y-o-y) 858.1 (+27% y-o-y)
(as of June 2018)

National Bank of Egypt S.A.E (NBE) 11,000+ 13,300 NA NA

(2015)

Arab African International Bank (AAIB) 8,293 5,683 US$ 14.2M (+15% y-o-y) 457.9 (+27% y-o-y)

QNB ALAHLI maintains its dominant position in payment acceptance sector with 18,660 POS terminals across Egypt
With 14,577 POS terminals and a trading value of US$ 0.51B (EGP 9.08B) during FY 2016-17, Banque Misr ranks No. 2 in terms of merchant
outlets with 16,413 locations nationwide
CIB ranks No. 3 in the market with a network of 13,142 POS terminals throughout Egypt

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Copyright FSS 2018 Source: The Nilson Report, June 2018; 2017 Annual reports of the banks
 Major payment gateway providers in Egypt (1/3)
Payment Gateways Product Features Customers
MIGS provides multi-currency payment processing for numerous industries online, in-person and via mobile
Processes online card payments as well as alternative payment methods from any device (mobile/laptop/in-app)
MIGS (Mastercard Payment Integration options include Hosted Checkout, Hosted Session, Direct Payment and Batch models QNB Al-Ahli,
Gateway) Offers recurring payment; Mobile SDK is supported on the iOS and Android platforms; DCC; reporting NBE, AAIB
3D Secure authentication; tokenization; risk management; transaction filtering; Address Verification Service
Integrate with multiple shopping carts and e-Commerce platforms
CyberSource Acquirers and Processors in Egypt – Arab African International Bank (AAIB), Ingenico ePayments, AMEX
and PayPal. Accepts Visa, Mastercard, American Express, JCB, PayPal Express Checkout, UATP
Accept card and alternate payments across all sales channels – mobile, web, POS and call center
CyberSource (Visa Payment National Bank
Facilitate cross-channel purchases and a common view of customer activity across channels
Gateway) of Egypt (NBE)
Use prebuilt integrations to connect commerce platforms and back-end systems (ERP, OMS, etc.)
Consolidate reporting across processors, payment types and channels
3D Secure, CyberSource Tokenization, Recurring Billing, Account Updater, CyberSource Payouts
Integrate with 50+ shopping carts, open API and mobile SDK
PAYFORT, Accept mobile and online payments using Visa or MasterCard credit cards by offering digital wallets (Apple Pay,
Offers
an Amazon Company Masterpass, Visa Checkout) or recurring payments or installments
Installments
(UAE, KSA, Egypt, Qatar, Muti-currency processing; one page checkout with no redirection to third-party site; Pay@Home; Pay@Store
service to CIB
Jordan, Lebanon, Kuwait) Fraud protection with 3D secure and ACI RED solution; fraud management with 20,000 + fraud rules
Tokentization service; Invoicing solution; Reporting and real-time dashboards

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Copyright FSS 2018
 Major payment gateway providers in Egypt (2/3)
Payment Gateways Product Features Customers
15 languages, 8 payment types, 87 currency options, 200+ global markets, PCI compliance
Accept mobile and online payments including credit cards, debit cards, and PayPal Served 50,000
Hosted checkout and Payment API merchants
Avangate’s 2 Checkout
Flexible integration with 100+ shopping carts and invoicing systems across the
Recurring billing world
Fraud protection with 300 fraud rules per transaction

Provides payment gateway for merchants across apparel, music, footwear, education, hospitality,
Network International’s e-retail, insurance, wellness, handicrafts, travel and entertainment categories
Payment Gateway Accept mobile and online payments from all major global credit and debit cards with 3D secure as well as PayPal
N/A
(Middle East and 260 fraud detectors and multiple preloaded and customized rules
Africa) Tokenization service; online merchant services and reports
E-commerce clients can securely void and refund transactions via the merchant portal

Middle East Payment MEPS offers e-commerce payment gateway solutions, PCI and security services, as well as value-added services
N/A
Services (MEPS) MEPS is a payment processor, card issuer and merchant acquirer of payment cards in Jordan, Palestine and Iraq

One-click checkouts utilize HyperPay’s tokenization solution

Omni-Channel payments (supports online, mobile, telesales and mPOS transactions)
Process
Gate2Play’s HyperPay Multi-currency acceptance
payments for
(MENA region) 120+ internal risk tools, fraud protection and 3D secure technology
400 accounts
Reporting and analytics
Easy Integration Plug-ins 16
Copyright FSS 2018
 Major payment gateway providers in Egypt (3/3)
Payment Gateways Product Features Customers

Alternative payment options (AliPay, UnionPay, Yandex money, Skrill, Klarna, iDeal, Ukash)
Accept payments in 168 currencies across the world
Settlement in local currency, alternative payment options including Fawry, Masary, etc.
PayTabs N/A
Faster Integration (in less than 24 hours); anti-fraud protection with 3D secure authentication
Recurring payments; PCI-DCC Certified
Direct API, Mobile SDK, -Commerce Plugins, Express Checkout

Accept payments in 150+ currencies

Accepts debit and credit cards; digital wallets like Apple Pay, Google Pay, Masterpass, Visa Checkout; stored value
Checkout.com – Mobile
wallets such as Alipay, PayPal, WeChat Pay and alternative payments like Boleto, SafetyPay, iDeal, Sofort, Nets, Klarna N/A
and Online Payments
Reporting and Analytics (Hub)
Fraud Mnagement with 3D Secure technology (Prism)

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Copyright FSS 2018
 Cash-on-delivery is the preferred payment method
E-Wallet,
1% Others, 3%
Bank Transfer,
2%
Top E-commerce Segments

Card, Airlines & Hotels

22% 1st
Cash,
72%
Electrical Goods
2nd

Entertainment
3rd
Egypt remains a cash-driven economy, with 72% of online purchases paid for by cash-on-delivery. Only 22% pay with a card (of whom 29% use Visa,
35% Mastercard and 36% a card issued by a local scheme). Only 2% of online purchases are paid for using bank transfer, and just 1% with an e-wallet
The average Egyptian online shopper spends $282 a year with e-commerce merchants. 40% of all online purchases are completed on a mobile device

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Copyright FSS 2018 Source: PPRO Payments & E-commerce Report 2018
www.fsstech.com