Egypt Outlines Plans for Improved Digital Transactions through Tokenization Strategy
Egypt Embraces Tokenisation Technology for Digital Payment Revolution
Across Africa, nations are making strides in strengthening their digital payment infrastructure, and Egypt is leading the charge. The Central Bank of Egypt has announced plans to implement card tokenisation technology by 2025, as part of a broader initiative to develop Africa's digital economies and reduce reliance on international payment networks.
This technology generates unique digital identifiers for each transaction, eliminating the need to store actual card data. This move is expected to decrease the risk of data breaches in Egypt, and could significantly impact financial inclusion in the country.
Egypt's financial institutions and merchants are likely to benefit from tokenisation through enhanced liquidity, 24/7 trading, improved compliance via smart contracts, reduced regulatory burdens, and expanded access to investment opportunities including real assets tokenization such as real estate and commodities. These advantages improve transaction speed, lower costs, enable borderless trading, and attract younger investors like Millennials and Gen Z.
Mastercard has pledged complete tokenisation coverage for online transactions by 2030, and major card networks worldwide have recognized the critical importance of tokenisation. With card tokenisation, merchants receive only encrypted tokens for processing payments, providing customers with safer, more reliable payment options.
The early adoption of tokenisation technology establishes a foundation for sustainable financial sector development in Egypt. The migration to tokenised payments positions Egypt as a regional leader in financial technology innovation. Egypt's digital transaction volume is projected to surge from EGP 7 trillion in 2021 to over EGP 22 trillion by late 2024.
The actual card details of customers are secured within the bank's systems with card tokenisation, ensuring the highest level of security. Through tokenisation technology, Egypt strengthens its position in the global digital economy. The implementation of tokenisation technology promises to reshape Egypt's payment landscape, boosting consumer confidence in digital payments and supporting Egypt's broader goals of modernizing its financial infrastructure.
Nigeria launched the AfriGo domestic card scheme in early 2023 as part of a continental push toward secure, independent payment systems. Egypt's tokenisation strategy provides citizens with a more secure, reliable, and efficient payment system, aligning with the broader goals of modernizing Egypt's financial infrastructure and establishing itself as a leader in financial technology innovation.
