The Central Bank of Egypt (CBE) has announced plans to launch card tokenization by 2025, a move aimed at enhancing security in the country’s rapidly expanding digital payment landscape.
This initiative will replace sensitive card information with unique digital identifiers during transactions, minimizing fraud risks and bolstering consumer data protection.
Since 2016, the CBE has been laying the groundwork for a robust digital financial infrastructure, contributing to a rise in financial inclusion from 27% to 71.5%.
With over 65 million electronic payment cards and 47 million mobile wallets in use, digital payments in Egypt are projected to exceed EGP 22 trillion by the end of 2024—up from EGP 7 trillion in 2021.
The adoption of tokenization is part of Egypt’s broader strategy to modernize its financial ecosystem. By safeguarding transactions against unauthorized access, tokenization fosters trust and encourages greater adoption of digital payment methods.
The push for tokenization aligns with global fintech and cybersecurity advancements. Leading payment networks like Mastercard aim to fully implement tokenization for online transactions by 2030, signaling a worldwide shift towards enhanced digital payment security.
In 2023, Egypt issued regulations supporting payment card tokenization to promote innovation and accelerate the transition to a cashless society. The strategy reflects a growing regional focus on secure digital finance, with countries like Nigeria introducing domestic card schemes like AfriGo to reduce reliance on international networks and drive financial inclusion.
The CBE’s initiative highlights Egypt’s commitment to creating a safer, more inclusive financial system. Tokenization minimizes risks associated with data breaches and fraud, building consumer confidence and supporting the nation’s goal of expanding access to secure payment options.
As electronic payments become a cornerstone of commerce, this step ensures that Egypt remains at the forefront of digital innovation in Africa. The tokenization rollout not only reinforces security but also aligns with Egypt’s vision of a connected and modernized economy.
Egypt’s adoption of tokenization serves as a model for neighboring nations, demonstrating the importance of integrating advanced security measures into financial infrastructures.
By prioritizing innovation and consumer protection, the initiative underscores the critical role of technology in fostering economic growth and financial inclusion.
This strategic move is poised to revolutionize Egypt’s digital payment ecosystem, ensuring a future marked by greater security, convenience, and trust.