Visa Inc. a US-based global payments technology company, has announced the signing of a Memorandum of Understanding (MoU) with the Egyptian Government, represented by the Ministry of Supply and Internal Trade and the Ministry of Planning, to enable electronic payment of government subsidies to 22 million Egyptian families.
The signing of the MOU 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,”
He added, “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.”
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.
“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, GM for North and West Africa, Visa Inc.
He added, “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.”
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.
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.
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.
Image Credit: Business Wire via Wikipedia.
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