CBE Gives Tentative Approval to Fawry's Deal With Govt Bank to Provide Instant Remittance Transfers

20/09/2020

Fawry CEO Ashraf Sabry told Al Mal that the Central Bank of Egypt (CBE) has given tentative approval to a government deal with the e-payment firm regarding a project to allow instant transfers from Egyptians abroad.

Sabry refused to disclose the name of the government bank, indicating that there are negotiations with other banks to provide this service.

The new system would disburse remittances instantly and from anywhere, through Fawry outlets.

An informed source told Al Mal in December that the CBE was considering the launch of a new system allowing banks to interconnect clients' instant transfers, as the current system is lengthy, with transactions taking 24 hours.

Fawry studied the project with three Egyptian banks -- the National Bank of Egypt, the Banque du Caire, and Alexbank -- and with Emirati banks Abu Dhabi Islamic Bank and Emirates NBD, to provide a new bank transfer service to Egyptians residing in the Arab Gulf states. 

The CBE has embarked on a plan to boost the efficiency of the banking sector through the launch of a number of electronic services and by extending the role of electronic payment companies to improve services offered to clients.

In 2019, the bank granted QR code licenses to several banks, including Banque Misr, Banque du Caire, the National Bank of Egypt, Commercial International Bank, HSBC, and others as part of its plan to move away from cash payments.

Egypt's official statistics body has said that the number of Egyptians in Arab countries reached 6.2 million at the end of 2016, a 65.8 percent increase in Egyptians abroad.

Saudi Arabia ranked first, with 46.9 percent of all Egyptians residing in Arab countries.

Remittances from Egyptian expats climbed 33.3 percent year on year during January and February of this year to reach $5.2 billion, the CBE previously reported.