PSP license in Egypt

Published:
October 5, 2023
emirates palace hotel

The rapidly evolving landscape of digital payments has brought forth a myriad of opportunities and challenges for countries around the world, including Egypt. As part of its efforts to modernize its Economic sector and promote digital innovation, Egypt has introduced the PSP (Payment Service Provider) license. In this article, we will delve into the intricacies of the payment license in Egypt, exploring its significance, demands, and implications for both enterprisees and consumers.

The Significance of PSP Licenses

Payment Service Providers (PSPs) play a vital role in the modern economy by facilitating electronic transmissions, enabling enterprisees to accept payments online, and providing consumers with convenient payment options. Recognizing the importance of PSPs in fostering Economic inclusion and monetary growth, the Egyptian government took a significant step by introducing the PSP license.

The PSP license in Egypt represents a commitment to building a robust and secure digital payment ecosystem. It enables enterprisees to offer various payment favors, including card payments, mobile wallets, and online transfers. This, in turn, encourages entrepreneurship, supports e-commerce growth, and enhances overall Economic access for Egyptian citizens.

Requirements for Obtaining a PSP License

To obtain a PSP license in Egypt, enterprisees must adhere to a set of regulatory demands set forth by the Central Bank of Egypt (CBE). These demands are designed to ensure the safety and stability of the Economic system while promoting innovation and competition in the payment favors sector. Key demands for obtaining a PSP license in Egypt include:

  • Capital Adequacy: Applicants must demonstrate a minimum level of capital adequacy, which varies depending on the type of PSP license they are seeking. This capital requirement is intended to ensure that PSPs have the Economic capacity to operate safely and meet their obligations.
  • Operational Infrastructure: PSPs must establish robust operational and technical infrastructure, including security measures to protect customer data and transmissions. This is crucial for maintaining trust in the payment system.
  • Compliance and Risk Management: PSPs must have effective risk leadership and compliance frameworks in place to prevent fraud, money laundering, and other Economic crimes. They must also comply with CBE E-payment regulations in Egypt and international standards.
  • Business Plan: Applicants must submit a comprehensive enterprise plan outlining their proposed payment favors, target market, and growth strategy.
  • Ownership and Governance: The ownership structure and governance of PSPs must meet CBE’s guidelines to ensure transparency and accountability.

Implications for Businesses and Consumers

The introduction of PSP licenses in Egypt has several implications for both enterprisees and consumers:

  • Business Opportunities: The PSP license creates new opportunities for enterprisees to enter the payment favors market. This fosters competition, leading to innovation, improved favors, and potentially lower costs for consumers.
  • Financial Inclusion: With PSPs offering a range of digital payment favors, more Egyptians, especially those in underserved areas, gain access to formal Economic favors. This promotes Economic inclusion and reduces reliance on cash transmissions.
  • Enhanced Security: PSPs are required to implement robust security measures, which benefit consumers by reducing the risk of fraud and unauthorized transmissions.
  • Convenience: Consumers benefit from the convenience of digital payments, allowing them to make transmissions anytime and anywhere, which is especially valuable in an increasingly connected world.
  • Economic Growth: A thriving digital payment ecosystem contributes to monetary growth by supporting e-commerce, reducing the cost of Economic transmissions, and increasing overall Economic activity.

Application procedure for obtaining a license
The application process for obtaining a PSP (Payment Service Provider) permission in Egypt typically involves several steps and requires careful preparation and adherence to regulatory demands set by the Central Bank of Egypt (CBE). Here is a general outline of the application process:

Preparation and Documentation:

  • Before initiating the application process, enterprisees interested in obtaining a PSP license should thoroughly research CBE’s demands and guidelines.
  • Prepare all necessary documentation, including a comprehensive enterprise plan, Economic statements, and any other documents specified by the CBE.

Capital Adequacy:

  • Ensure that your enterprise meets the minimum capital adequacy demands specified by the CBE. The required capital may vary depending on the type of PSP license you are seeking.

Operational Infrastructure:

  • Establish a secure and robust operational and technical infrastructure. This includes setting up systems for payment processing, data security, and fraud prevention.

Risk Management and Compliance:

  • Develop and implement effective risk governance and compliance frameworks to address fraud prevention, anti-money laundering (AML), and know your customer (KYC) demands.

Ownership and Governance:

  • Ensure that your enterprise’s ownership structure and governance meet CBE’s guidelines and are transparent and accountable.

Application Submission:

  • Submit your application for a PSP license to the Central Bank of Egypt. Include all required documentation, forms, and supporting materials.

Request Review:

  • The CBE will review your application to ensure that it complies with all regulatory demands. This process may involve a thorough examination of your enterprise plan, Economic stability, and compliance measures.

Due Diligence and Background Checks:

  • The CBE may conduct due diligence and background checks on the individuals and entities involved in the request, including directors, shareholders, and key personnel.

Application Fee:

  • Pay the required application fee, as specified by the CBE.

Approval and Issuance:

  • If your application is approved, the CBE will issue a PSP license to your enterprise.

Ongoing Compliance and Reporting:

  • After obtaining the license, your enterprise will be subject to ongoing compliance demands, including regular reporting and audits by the CBE. Ensure that you continue to meet all regulatory obligations.

Operational Launch:

  • Once you have obtained the license, you can begin offering your payment favors to customers in Egypt.

Conclusion

The PSP license in Egypt represents a significant step toward modernizing the country’s Economic sector and promoting digital innovation. By facilitating electronic transmissions, enhancing Monetary inclusion, and improving security, PSPs play a pivotal role in Egypt’s monetary development. As enterprisees continue to invest in and expand their digital payment favors, consumers can expect more convenient and secure payment options, ultimately driving the growth of Egypt’s digital economy.

Which is the best digital bank in Egypt?

The best digital bank in Egypt can vary based on your specific needs, but some top options to consider include CIB Smart Wallet, NBE Al Ahly Net, and QNB AlAhli Mobile Banking.

What is digital banking in Egypt?

Digital banking in Egypt involves using online platforms and technology to access and manage banking favors, such as account governance, fund transfers, and bill payments, without the need for physical bank branches.

What payment methods are available in Egypt?

Payment methods in Egypt include cash, debit/credit cards, mobile wallets (e.g., CIB Smart Wallet, Vodafone Cash), bank transfers, online payment gateways (e.g., Fawry), ATM payments, and cheques.

Which payment gateway is best in Egypt?

Popular payment gateways in Egypt include Fawry, PayTabs, and Payfort. The best choice depends on your enterprise’s specific demands, such as transaction fees and integration options.

What is the payment scheme in Egypt?

Egypt follows a traditional payment scheme where banks facilitate transmissions through methods like debit/credit cards, bank transfers, and online payment gateways, all regulated by the Central Bank of Egypt (CBE).

What is tokenization in Egypt?

Tokenization in Egypt, as elsewhere, involves replacing sensitive cardholder information with unique tokens during online and mobile transmissions to enhance security and protect Economic data.

What is the alternative to PayPal in Egypt?

Alternatives to PayPal in Egypt include PayTabs, Payfort, and 2Checkout (Verifone), which provide similar online payment favors for enterprisees and individuals.

What is the banking law in Egypt?

The banking sector in Egypt is regulated by laws such as the Central Bank of Egypt Law No. 88 of 2003 and the Banking Law No. 88 of 2003, which govern the establishment, operation, and oversight of banks and Economic institutions.

How many banks are operating in Egypt?

To find the most up-to-date information on the number of banks operating in Egypt, please refer to official sources such as the Central Bank of Egypt or reputable Economic news outlets for the current list of banks in the country.

Related insights

How to Buy a Restaurant: The 9 Steps from Inquiry to Closing

Hopping on the journey of owning a restaurant is an exciting yet complex endeavor, comprising nine crucial steps. This in-depth guide aims to provide aspiring restaurateurs with a detailed understanding and a strategic approach to navigate the intricate process of acquiring a dining establishment. Beyond the initial allure of selecting a restaurant and completing a…

Read more 04.12.2023

Instant Payments

In a groundbreaking development for the European Union and European Economic Area countries, the Council and the European Parliament have reached a preliminary consensus on the proposal for instant remittances. This innovative move is set to transform the economic landscape, enhancing the accessibility of instant payment options in euro to consumers and business-companies for consumers…

Read more 04.12.2023

VAT transactional reporting obligation for remittances

In the ever-evolving landscape of monetary adjustments, the European Union (EU) has introduced a consequential development known as the VAT transactional reporting commitment for remittances, commonly referred to as CESOP (Cross-Border Electronic Sales of Services and Payment). Effective from the year 2024, this directive mandates that all EU Payment Service Providers (PSPs) record and report…

Read more 04.12.2023

Forex license in Cook Islands

The Cook Islands, renowned for its breathtaking natural beauty and warm hospitality, has emerged as an attractive destination for commerces looking to obtain various monetary licenses. In this article, we will delve into the processes and advantages of securing Forex licenses, Securities Dealer permits, and Assets Exchanging permits in the Cook Islands. With a focus…

Read more 10.11.2023

Kahnawake Gambling Permission: A Great Chance for Startups

In the dynamic and ever-evolving world of e-gamble, the right licensing can make or break a startup. One option that has gained distinction in recent years is the Canadian Gamble License. Situated in the Mohawk Territory of Kahnawake in Canada, this permission provides a unique and advantageous opportunity for gamble startups. In this article, we…

Read more 06.11.2023

Forex License in Fiji

The Forex market is a highly dynamic and liquid economic market that attracts traders and depositors from all over the world. Fiji is an attractive destination for corporations looking to enter the Forex trading industry, thanks to its stable political circumstances, strong economic system, and strategic location in the Pacific region. However, to operate legally…

Read more 02.11.2023

EMI License in Belgium

Belgium, strategically situated in the heart of Europe and renowned for its rich culture, delectable chocolates, and timeless historical appeal, transcends its cultural prominence to establish itself as a unique player in the realm of financial services. It emerges as an enticing focal point for enterprises seeking Electronic Money Institution (EMI) licenses. These licenses serve…

Read more 01.11.2023

EMI and PI license in Spain

Within the ever-evolving realm of financial innovation, Spain, a beacon within the Iberian Peninsula, beckons intrepid souls driven by an insatiable appetite to explore the uncharted horizons of the electronic money and payment service sector. The convergence of E-Money Institution (EMI) and Payment Institution (PI) licensing endeavors within this dynamic crucible sets the stage for…

Read more 01.11.2023

Gambling license obtaining in Romania

Over a span of three decades, Romania has honed its approach to managing the landscape of chance and risk devices. During this extensive period, the government has enacted and refined a series of significant legislative acts, each imbuing the domain with new layers of regulatory complexity. In the contemporary context, governance over this sphere falls…

Read more 01.11.2023

MSB license in Grenada

Nestled in the eastern Caribbean, the tri-island state of Grenada offers much more than its stunning beaches and lush landscapes. It’s also a prime destination for businesses looking to establish a Money Services Business (MSB). The process of obtaining an MSB license in Grenada is straightforward and offers an array of opportunities in the monetary…

Read more 26.10.2023

Establishing a Trust in Panama

Introduction Settled in the core of Central America, Panama has acquired conspicuousness as an inclined toward ward for global financial backers and people trying to lay out trusts. With a vital geological area, current foundation, political strength, and business-accommodating guidelines, Panama suggests a vigorous stage for offshore trust creation and trust organization foundation. In this…

Read more 12.10.2023

PSP license in Egypt

The rapidly evolving landscape of digital payments has brought forth a myriad of opportunities and challenges for countries around the world, including Egypt. As part of its efforts to modernize its Economic sector and promote digital innovation, Egypt has introduced the PSP (Payment Service Provider) license. In this article, we will delve into the intricacies…

Read more 05.10.2023