Non-cash transactions in Egypt set to reach $16.34 billion in 2023

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A general view of a street in Cairo. (AFP File)
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  • The report suggests that the global growth will continue to accelerate, potentially reaching 2.3 trillion transactions by 2027, with an annual growth rate of 15%
  • In Egypt, digital payments are also on the rise, with a predicted annual growth rate of 14.03% from 2023 to 2027

Cairo, Egypt –  The Egyptian market is projected to reach an impressive $16.34 billion in non-cash transactions in 2023, while as global non-cash transaction volumes are set to hit a staggering 1.3 trillion in the year, reveals  the Capgemini Research Institute’s 2023 World Payments Report.

As consumers and businesses eagerly embrace new digital payment methods, the report suggests that the global growth will continue to accelerate, potentially reaching 2.3 trillion transactions by 2027, with an annual growth rate of 15%.

In Egypt, digital payments are also on the rise, with a predicted annual growth rate of 14.03% from 2023 to 2027, culminating in a total transaction value of $27.63 billion by 2027.

Several key factors are driving this significant shift in payment methods, including the expansion of digital payment infrastructure, evolving regulations, and the rise of open banking. New payment methods such as instant payments, e-money, digital wallets, account-to-account transfers, and QR code payments are gaining popularity, gradually overshadowing traditional non-cash methods like checks, direct debits, cards, and credit transfers. 

In Egypt, non-cash transactions have surged by 46% in 2023, reaching EGP10 trillion, according to a report by the Central Bank of Egypt (CBE). Since 2019, new payment methods within non-cash transactions have experienced substantial growth, marked by the increasing use of credit cards, point-of-sale (POS) systems, and digital wallets.

Card payments have been the most popular non-cash payment method in Egypt, accounting for 46% of all transactions in 2023. However, the report highlights the growing popularity of new methods like instant payments, digital wallets, and QR code payments among consumers and merchants.

 A survey conducted by PwC Egypt in 2023 revealed that 62% of consumers and 58% of businesses used digital wallets, compared to 42% and 36% in 2020, respectively. Similarly, 54% of consumers and 48% of businesses reported using QR code payments in 2023, compared to 32% and 28% in 2020.

 “In an era marked by remarkable digital transformation, Egypt’s payments landscape is evolving at an unprecedented pace,”  Eng. Hossam Seifeldin, CEO of Capgemini Egypt, said. “The surge in non-cash transactions and the increasing adoption of new digital payment methods reflect the market’s dynamic evolution. This reflects a substantial shift in how businesses and consumers engage within Egypt’s economy.”

However, as corporations navigate global economic challenges and supply chain disruptions, the report also reveals that current cash management services (CMS) often fall short of meeting multinational corporate needs. Over 70% of enterprise executives reported issues with dispute negligence, poor credit risk assessment, and delayed or duplicate payment processing. Legacy infrastructure barriers were cited as the biggest hindrance to efficient CMS.

Jeroen Hölscher, Global Head of Payments Services at Capgemini, highlighted the need for a digital foundation to optimize the value chain, saying, “corporate executives are feeling the pressure from mounting inefficiencies across lengthy cash conversion cycles.”

“As the payment sector continues its digital transformation, corporate clients are demanding a retail-like payment experience from their banks. Compliance with local, regional, and international regulations, such as ISO20022 and SWIFT global payments initiatives, has put stress on traditional payment revenue sources. Payment executives now see commercial payments as holding more profit potential than retail payments,” he added.

The report suggests that to navigate this changing landscape, a three-layered strategy should be adopted: simplify the back office to enable innovation and agility, perform with platforms to boost cash management efficiency, and engage with corporate clients as strategic partners, rather than service providers.

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