Initiative will provide 22 million subsidy recipients with secure,
convenient, and transparent payment solutions
SAN FRANCISCO & CAIRO--(BUSINESS WIRE)--
The Egyptian government, represented by the Ministry of Supply and
Internal Trade and the Ministry of Planning, this week signed a
Memorandum of Understanding (MOU) with Visa Inc., to enable electronic
payment of government subsidies to 22 million Egyptian families.
The MOU was signed by H.E. Dr. Khaled Hanafy, Minister of Supply and
Internal Trade, H.E. Dr. Ashraf Al Arabi, Minister of Planning,
Monitoring, and Administrative Reform, and Stephen Kehoe, senior vice
president for Financial Inclusion, Visa Inc., at a ceremony held at the
Ministry of Administrative Development. The signing of the MOU today
launches an ambitious period of work designed to provide Egypt with one
of the most modern subsidy payments systems in the world.
H.E. Dr. Khaled Hanafy, Minister of Supply and Internal Trade said, “The
MOU is an additional step towards the empowerment of Egyptian citizens
and signifies that the government is keen to enhance the quality of
services offered to them. Visa, the most experienced company in the
field, is financing the study that aims at transforming the current
subsidy scheme and providing Egyptians with a payment tool that would
provide more services and benefits. This will result in greater
financial inclusion which requires cooperation amongst all stakeholders.”
“We consider the study as a milestone in our greater plans for the
development of Egypt by 2030. It reflects the government’s resolve to
address the challenges and improve the lives of Egyptians by
collaborating with companies like Visa. It is a testament that we are
seeking international standards when it comes to the services offered to
our citizens,” said H.E. Dr. Ashraf Al Arabi, Minister of Planning,
Monitoring, and Administrative Reform.
“This MOU signing represents not only an important milestone in our
ongoing cooperation with the Egyptian government, but is also a major
step forward in our efforts to bring more Egyptians into the formal
financial system, with all the associated benefits that brings,” said
Stephen Kehoe, senior vice president, Visa Inc. “Our shared vision for
enhancing the quality of services and employing the latest payment
technologies makes this partnership a great opportunity for Egyptian
families, the financial services industry, merchants and the government
alike.”
As part of the MOU, the Egyptian government will first work with Visa on
a study that reviews the current subsidy program, so that an informed
action plan can be created to move the disbursement process to
electronic payments. The study will also look into increasing electronic
payment acceptance at subsidy-accepting merchants, especially bakeries,
and capitalize on the widespread usage of mobile phones in the country.
Additionally, Visa will introduce payment innovations and share global
best practices in risk management and anti-fraud applications.
The use of electronic payments will bring greater payment security and
convenience to Egyptian families, while lowering costs and bringing
increased transparency to the government subsidy program.
“Today, less than two percent of payments in Egypt are made
electronically which is just one reason why this partnership can be so
impactful,” said Tarek Elhousseiny, general manager for North and West
Africa, Visa Inc. “The financial inclusion needs of Egypt have some
similarities to those we have addressed in Latin America and other
regions, which is why we are excited about the best practices we can
bring to this partnership.”
Through this program, the Egyptian government hopes to improve the
quality of services offered to its citizens, and adopt innovative
payment technologies that will drive financial inclusion for more
Egyptians. By providing fully functional digital payments accounts, the
22 million family beneficiaries, most of whom are unbanked, will gain
easier access to other financial service offerings. The government also
intends to include banks in the subsidy scheme given their growing role
in financial inclusion.
About Visa Inc.: Visa Inc. (NYSE:V) is a global payments
technology company that connects consumers, businesses, financial
institutions and governments in more than 200 countries and territories
to fast, secure and reliable electronic payments. We operate one of the
world's most advanced processing networks — VisaNet — that is capable of
handling more than 65,000 transaction messages a second, with fraud
protection for consumers and assured payment for merchants. Visa is not
a bank and does not issue cards, extend credit or set rates and fees for
consumers. Visa's innovations, however, enable its financial institution
customers to offer consumers more choices: pay now with debit, pay ahead
of time with prepaid or pay later with credit products. For more
information, visit usa.visa.com/about-visa,
visacorporate.tumblr.com
and @VisaNews.

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Source: Visa Inc.