The Central Bank of Egypt (CBE) has released regulations on payment tokenisation; once approved this will allow contactless payments through mobile apps. Currently, payment cards in Egypt can function in both offline and online modes, as well as contactless.

Worldwide, the option to pay via payment card tokenization has proved to be popular, with banks offering tokenization services on various devices such as smartphones and smartwatches. The report highlighted that these services are meant to stimulate the use of new electronic payment tools for customers to carry out various electronic banking transactions. The services are meant to keep up with the latest technologies for payment systems and services worldwide.

The regulations specifically address payment tokenisation in which a payment token is utilised throughout the entire payment transaction from the point of sale to the acquirer. They also stipulate a Consumer Device Cardholder Verification Method (CDCVM), a type of verification enabled by card networks when conducting contactless transactions stemming from mobile and electronic devices, or PIN use. The regulations fit within the framework of CBE’s efforts to promote digital development, as the report suggests.

In recent years, Egypt has been increasingly facilitating payment services that depend less on cash and more on companies and solutions such as InstaPay, Telda, Fawry, Vodafone Cash, among others, which have become widely accessible and beneficial to Egypt’s underbanked population. Tracking the new payment regulations The Central bank of Egypt (CBE) has recently approved the rules for payment card service codes, allowing contactless transactions via mobile apps within the framework of the NPC. The rules are a continuation of the CBE’s efforts to promote digital development, as coding allows payment cards to be registered on smart device applications and used to complete payments on electronic points of sale, or online purchases in an easy, secure, and innovative way.

The bank explained that the issuance of the rules governing card coding services on electronic device applications allow the activation of the services of many international companies, such as Apple Pay, Samsung Pay, and others, as well as financial technology companies, which in turn will lead to the creation of opportunities to provide innovative financial solutions that are compatible with customer requirements. .