The Central Bank of Egypt (CBE) released regulations pertaining to payment cards tokenization on electronic device applications on 8 March.
Once approved and implemented, the regulations will effectively allow for contactless payments through applications like Apple Pay, Google Pay, and Samsung Pay among other fintech services.
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 many 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.”
“Tokenization services on electronic device applications are one of the most important services that contribute to the empowerment of a large number of citizens,” adds the report. It also states that these services are meant to keep up with the latest technologies for payment systems and services worldwide.
The regulations specifically address payment tokenization 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 per Daily News Egypt.
In recent years, Egypt has been increasingly facilitating payment services that depend less on cash through companies and solutions such as InstaPay, Telda, Fawry, Vodafone Cash, among others, which have become widely accessible and beneficial to Egypt’s underbanked population.