Egypt’s Rapid Fintech Expansion: A 5.5-Fold Growth Fueling Financial Inclusion and Digital Transformation
3 min read
Egypt’s financial technology sector has witnessed significant expansion, fostering a dynamic ecosystem of over 177 startups and Payment Service Providers (PSPs). Among these, 139 companies are dedicated to fintech innovation, while 38 integrate embedded financial services into their technological offerings.
Over the past five years, the number of fintech firms and PSPs in Egypt has increased 5.5 times, reflecting the sector’s rapid growth and increasing impact on the financial landscape.
The fintech ecosystem in Egypt spans 14 distinct subsectors, emphasizing its diversity and capacity for innovation. Nearly 60% of fintech companies focus on lending and alternative finance, payments and remittances, and business-to-business (B2B) marketplaces. Other critical segments contributing to the industry’s expansion include data analytics, artificial intelligence (AI), open banking, health tech, insurtech, and personal finance management. These developments position Egypt as a leading force in the regional fintech space, driven by an increasing shift toward digital financial services.
The Rise of Financial Inclusion
Egypt’s financial inclusion rates have experienced substantial improvement in recent years. In 2014, the country ranked among those with the lowest levels of financial account ownership, with only 12% of the population and 14% of adults holding bank accounts, according to the World Bank. However, between 2016 and 2022, financial inclusion expanded significantly, with account ownership rising by 147%. By the end of this period, 42.3 million citizens—equivalent to 64.8% of the 65.4 million eligible adults (aged 16 and above)—held transactional accounts, including bank accounts, Egypt Post accounts, mobile wallets, and prepaid cards.
This upward trend continued into 2023, with 46.9 million adults—representing 70.7% of the total adult population—holding financial accounts. Egypt’s financial inclusion rates now closely align with global figures, as 71% of adults in developing countries currently own financial accounts. Looking ahead, the number of digital payment users in Egypt is expected to reach 56.74 million by 2028, further solidifying the country’s transition toward digital financial services.
Growth in Prepaid Cards and Mobile Wallets
The adoption of prepaid cards in Egypt has risen significantly, with 43.8 thousand cards issued per 100,000 citizens—an increase of 31% between 2020 and 2022. The market value of prepaid cards has followed a similar trajectory, recording a compound annual growth rate (CAGR) of 13.6% from 2019 to 2023. Future projections indicate even faster growth, with a forecasted CAGR of 15.2% from 2024 to 2028, potentially increasing the market’s value from $2.75 billion in 2023 to an estimated $5.69 billion by 2028.
Similarly, mobile wallets have seen a surge in adoption, reaching 46.5 thousand wallets per 100,000 adults—a remarkable 54% increase over the same period. This rapid expansion underscores the growing demand for digital-first financial services, reinforcing the fintech sector’s crucial role in financial inclusion and economic modernization.
The Impact of Fintech on Economic Transformation
Fintech solutions, including mobile payments, digital wallets, and microfinance platforms, have played a crucial role in integrating individuals and small businesses into the formal financial system. These innovations have enhanced access to financial services, enabling previously underserved populations to participate more actively in the economy. By offering secure and convenient financial solutions, fintech companies have contributed to broader economic engagement and financial sector development in Egypt.
As the country continues its digital transformation, Egypt’s fintech industry is expected to play an increasingly vital role in shaping the future of financial services, driving financial inclusion, and fostering sustainable economic growth.
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