May 3, 2023

Egypt – Consumer Finance Companies to Provide Payment Services Using Prepaid Cards

The Financial Regulatory Authority (“FRA”) issued Decree No. 61 for 2023 (“Decree”) to allow licensed consumer finance companies to provide payment services using prepaid cards on behalf of banks.

The Decree authorized licensed consumer financing companies to:

  • Verify the identity of the applicant following the applicable customer care and KYC rules.
  • Receive and register applications for issuance of prepaid cards.
  • Provide guidance and awareness for the proper use of the cards.
  • Collect cash installments from card users and transfer them to the bank account of the company.
  • Offering cash amounts for the user’s consuming purposes against deductions from the card amount.

Consumer finance companies willing to provide such services must comply with the logistics, technical and cyber security requirements stipulated under the Decree and must obtain the approval of the FRA.

The Decree mandates the consumer finance companies to disclose information to the FRA about the contractual arrangements with the banks and the sellers and service providers. It also required companies to keep records for at least five years from the date of the transaction.

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