CBE Issues New Licensing Framework for Electronic Payment Service Providers
The Central Bank of Egypt (CBE) has introduced a comprehensive set of regulations governing the licensing and registration of payment system operators and electronic payment providers. This new framework, issued under Law No. 194 of 2020, aligns with the CBE’s commitment to adapting to digital payment advancements and enhancing financial security.
Scope of Application Includes Domestic and Cross-Border Institutions
The new regulations outline conditions and procedures for licensing institutions, both local and international, that offer payment services targeting Egyptian clients. Activities covered range from fund transfers to electronic acceptance channels and payment account information services.
Transitional Period and Prior Approval Requirements
Existing payment entities have a 12-month grace period to comply with the new guidelines. They must be authorized by a regulatory body in their home country and meet CBE’s criteria for operating in Egypt. Prior approval is mandatory for establishing or modifying payment institutions.
All relevant organizations must submit applications for prior approval, whether creating new entities or expanding services. The CBE will make a decision within 90 days of receiving all necessary documentation.
Mandatory Three-Year Strategic Business Plan
Applicants are also required to submit a detailed strategic business plan covering a minimum of three years.
