Cairo, Egypt – In an exclusive interview with CNN Economics, Malak El Baba, Executive Vice President of Visa Egypt, revealed that digital transactions currently account for only 5% of Egypt’s economy. El Baba emphasized the urgent need for digital financial solutions to support both individuals and businesses, highlighting Visa’s commitment to broader financial inclusion.
This statement followed the signing of a strategic partnership between Visa and SwypeX, a corporate management platform, aimed at enabling Egyptian companies to embrace digital transformation. “The goal of this cooperation is to achieve broader financial inclusion that extends beyond individuals to support companies. Egyptian businesses clearly need digital financial products to improve operations, ensure transparency, and comply with regulatory standards,” said El Baba during the ceremony.
The Shift from Traditional Finance
Ahmed Mokhtar, co-founder of SwypeX, underlined the persistent reliance on traditional financial methods among Egyptian businesses. He noted that approximately $100 billion is transferred between companies annually, with the majority of these transactions conducted via cash, checks, or financial trusts. “Our aspiration is to help companies transition to digital systems and modernize their financial operations,” Mokhtar stated.
Since its launch in May 2024, SwypeX has experienced exponential growth, securing hundreds of local companies on its platform. Following a successful $4 million Series A funding round, SwypeX reported a 100-fold increase in transaction volumes and a 70% reduction in its customers’ reliance on cash.
The platform equips businesses with digital payment tools and advanced spending controls, allowing companies to set spending limits, define usage permissions, and monitor transactions in real-time. Payment details, including receipts and invoices, are integrated into a centralized dashboard that connects with ERP systems, accounting software, and Egypt’s government e-invoicing platform.
Tax Collection Challenges and Financial Inclusion
Egypt continues to grapple with inefficiencies in tax collection, a challenge exacerbated by the widespread use of cash. Former Finance Minister Mohamed Maait revealed earlier this year that the country loses an estimated EGP 500 billion (approximately $10 billion USD) annually due to tax evasion. To address this, the government has introduced electronic invoicing as part of its digitalization efforts.
Despite these challenges, Egypt has made strides in financial inclusion. According to the Central Bank of Egypt, the inclusion rate has reached 71%, encompassing not only bank account holders but also users of electronic wallets and prepaid cards. However, restrictions on international withdrawals for Egyptian debit cards, implemented to curb dollar outflows, continue to pose limitations.
Visa’s Global Efforts
Visa’s efforts in Egypt are part of its broader global initiative to promote digital transformation. Last July, the company announced that it had supported over 67 million small and medium-sized businesses worldwide in transitioning to digital platforms.
With the partnership between Visa and SwypeX, Egypt’s corporate sector may see significant advancements in digital financial adoption, potentially addressing longstanding inefficiencies and fostering economic growth.
