Payment methods in Egypt- statistics & facts
Since the onset of the Russia-Ukraine war, Egypt's economic crisis has intensified. The nation is grappling with foreign currency shortages coupled with a significant rise in debt that is used to finance a number of mega-projects. In 2023, the debt to GDP ratio in Egypt was estimated at almost 96 percent, up from just over 80 percent in 2019. This strained the national currency, leading to its devaluation and consequently higher inflation. Nonetheless, the country is the largest receiver of remittances in Africa, which is economically beneficial although this simultaneously requires facilitation of innovative payment tools.
In a rapidly evolving digital age, Egyptians remain highly dependent on cash for their payment transactions. This comes as a result of the low banked population, cultural limits on banking women, public trust in fiat currency, and the large informal labor market among others. Nevertheless, Egypt is in the midst of a noticeable change affecting its financial sector. In 2023, its financial inclusion rate jumped to reach nearly 71 percent of the population, a substantial increase from around 27 percent in 2016. Such increase can partly be attributed to the rise in access to emerging payment methods. A survey conducted in 2022 revealed, that around 88 percent of the respondents embraced at least one alternative payment method, thereby slowly moving away from traditional ones.
In a rapidly evolving digital age, Egyptians remain highly dependent on cash for their payment transactions. This comes as a result of the low banked population, cultural limits on banking women, public trust in fiat currency, and the large informal labor market among others. Nevertheless, Egypt is in the midst of a noticeable change affecting its financial sector. In 2023, its financial inclusion rate jumped to reach nearly 71 percent of the population, a substantial increase from around 27 percent in 2016. Such increase can partly be attributed to the rise in access to emerging payment methods. A survey conducted in 2022 revealed, that around 88 percent of the respondents embraced at least one alternative payment method, thereby slowly moving away from traditional ones.
