Egypt is tightening control over fintech before it explodes

Just as Egypt’s digital finance sector is gaining ground, the Central Bank of Egypt (CBE) has taken a major regulatory leap. In a move seen by many as both a safeguard and a signal of serious growth, the CBE has rolled out a comprehensive framework to license and supervise payment system operators (PSOs) and payment service providers (PSPs).
This isn’t just bureaucracy—it’s a clear message: the era of informal or loosely governed digital payment activity in Egypt is closing.
CBE responds to fintech’s fast rise
Digital payments have surged in Egypt in recent years, driven by growing smartphone usage, e-commerce, and strong state-backed financial inclusion initiatives. With nearly 75% of the adult population now financially included, the role of digital payment platforms has become central to how Egyptians send, receive, and manage money.
Recognizing this shift, the CBE has introduced rules grounded in Law No. 194 of 2020 to structure how both local and foreign payment providers operate. These regulations are meant to ensure innovation doesn’t outpace stability or security.
Who these rules apply to
The new framework targets any entity offering payment services to customers in Egypt, regardless of whether it is physically located inside or outside the country. This includes activities such as:
Deposits and withdrawals from payment accounts
Peer-to-peer and merchant transactions
Issuance of e-wallets, cards, and payment apps
Domestic money transfers and remittance distribution
Payment account information services
Initiation of payment orders and bill payments
Foreign PSPs that wish to serve Egyptian clients are now required to be licensed in their home country and to meet CBE’s requirements—effectively ending the grey area many cross-border fintechs previously operated in.
What companies must do now
Under the new rules, existing payment institutions have a 12-month window to get their house in order. During this transition period, they must apply for a license while continuing operations under CBE observation.
To qualify, institutions must meet strict conditions, including:
Submitting legal and financial documentation
Meeting minimum capital thresholds
Providing financial guarantees
Agreeing to ongoing inspections and regulatory audits
Paying license and supervision fees
The CBE’s approach appears to strike a balance—tightening oversight without halting operations, allowing innovation to continue under clearer and safer rules.
Why now?
There are a few likely drivers behind the timing of this announcement. First, Egypt’s digital payments ecosystem has exploded in recent years, with major players like Fawry, InstaPay, and telecom-based wallets seeing unprecedented user growth.
Second, as foreign fintechs eye the Egyptian market, the central bank likely saw the need to protect consumers and domestic operators from unregulated competition or security risks. Finally, with Egypt’s push to attract global investment and build trust in its digital infrastructure, a robust regulatory framework is crucial.
A big win for transparency and competition
These rules could actually help, not hinder, serious players. With clear licensing pathways and standardized expectations, trustworthy companies—whether startups or large institutions—can now enter the market with more confidence.
At the same time, the CBE’s insistence on capital requirements and regulatory oversight may weed out undercapitalized or risky operators, ensuring greater consumer protection.
This also aligns with broader moves to modernize Egypt’s banking infrastructure and create a more competitive financial ecosystem that supports digital entrepreneurship, especially among SMEs and fintech startups.
What’s next for digital payments in Egypt?
With these new rules, Egypt is aligning more closely with global financial regulatory practices. Similar moves in other markets—like India’s licensing regime for payment aggregators or the EU’s PSD2 directive—have strengthened digital economies while ensuring consumer protections.
Egypt’s central bank seems determined not to be left behind. As digital transactions become the default rather than the exception, this regulation marks a pivot: Egypt’s digital economy is no longer experimental. It’s foundational—and now, it’s being formally governed.
The coming months will be critical. How existing operators respond, how quickly foreign firms comply, and how effectively the CBE enforces these rules will shape the next chapter in Egypt’s financial future.