In a major step toward strengthening Egypt’s digital economy, the Central Bank of Egypt (CBE) has issued new regulations for payment system operators (PSOs) and payment service providers (PSPs). The move aligns with Law No. 194 of 2020, which governs the CBE and the country’s banking sector.
This regulatory update comes as part of the CBE’s strategy to keep pace with fast-evolving digital payment trends while promoting secure, inclusive, and efficient financial services across the country.
Why these Regulations Matter
Egypt has made remarkable progress in digital finance. With financial inclusion reaching 74.8%, the country is pushing ahead with initiatives like contactless payments and prepaid card partnerships, such as the one between Mastercard, Banque Misr, and Money Fellows.
To ensure a stable foundation for this growth, the CBE’s new rules provide a clear framework for how PSOs and PSPs—whether local or international—can operate legally within Egypt.
Scope of the New Rules
The regulations apply to all institutions offering or operating payment services inside Egypt. This includes companies headquartered abroad but serving Egyptian customers. Key covered activities include:
- ✅ Deposits and withdrawals from payment accounts
- ✅ Execution of payment transactions and fund transfers
- ✅ Issuance of payment tools and digital acceptance systems
- ✅ Disbursement of remittances in Egyptian pounds
- ✅ Initiation of payment orders
- ✅ Account information services
These services are now governed under a standardized framework that ensures safety, transparency, and compliance.
Licensing and Operational Requirements
To operate legally, service providers must meet detailed conditions, including:
- ✅ Comprehensive documentation outlining company details
- ✅ Minimum capital requirements for financial stability
- ✅ Procedures for license modifications
- ✅ Mandatory financial guarantees
- ✅ Fees for inspections and supervisory activities
Foreign institutions must also meet additional conditions. They are required to hold valid licenses from the regulatory authority in their country of origin and must comply with Egypt’s specific operational guidelines.
A 12-Month Transitional Period
Existing payment service operators are not left behind. The CBE has granted a 12-month transitional period starting from the date of regulation issuance. During this time, all current service providers must:
- ✅ Submit their formal licensing applications
- ✅ Continue operations under temporary authorization until a final decision is made
This grace period ensures continuity of service while also aligning all players with the new legal framework.
Final Thoughts
With these new regulations, the Central Bank of Egypt is not only tightening oversight but also paving the way for a stronger, more inclusive digital financial ecosystem. These updates are crucial to ensuring that the country’s electronic payment infrastructure remains secure, transparent, and future-ready.