Arab Financial Services Expands its Digital Payments Solutions into the Egyptian Market
Arab Financial Services (AFS), a leading digital payment solutions provider and fintech enabler in the MENA region, has announced plans to expand its payments footprint in Egypt by opening a branch in the North African economic powerhouse.
AFS Egypt will provide the country’s businesses and financial institutions with the most up-to-date payment solutions and innovations.
Commenting on the expansion, Samer Soliman, CEO of AFS, said, “The unprecedented growth in the Egyptian market over the past few years has yielded opportunities for all stakeholders in the payments ecosystem to expand regionally. Moving into new markets is just the first step of our ambitious growth strategy. However, it’s not just about expansion for us, and it’s just as much about us being there to serve our customers on a local basis or regionally for those of our customers with a wider geographic spread, with a real focus on providing service quality and making it easier for our customers to transact.”
“Entering the Egyptian market reflects its importance and potential. It also aligns with AFS’s vision to become the leading enabler for digital transaction transformation across the Middle East and Africa region,” Soliman added.
Also, the AFS Board has appointed Tawfik Mahmoud, an experienced payments expert with a proven track record, to lead the AFS team in Egypt.
Mahmoud commented on his new appointment, “It is a real privilege for me to take on this role for what I consider to be the leading provider of payment solutions across the region with a culture of innovation, thought leadership, and real customer orientation.”
“I intend to deliver both mass market and tailored payment solutions to reflect the many different types of businesses that operate in Egypt and to leverage the wealth and breadth of products and services AFS have brought and is bringing to the payments market,” he added.
As the manager of the Egyptian branch of Arab Financial Services, Mahmoud will lead the company’s strategy in Egypt, grow the team across the country, support its growth, and scale Egypt’s merchant clients across all sectors and industries.
Our Take on the New Entrant into the Egyptian Fintech Space
There is no gain in saying that the Egyptian fintech sector has witnessed exponential growth. The Fintechs are increasing from only two to 112 between 2014 and 2021, according to a report released in February by FinTech Egypt, an initiative powered by the Central Bank of Egypt to promote and support the industry. Moreover, VC investments in the sector rose from only $1 million in 2017 in three deals to $159 million in 2021 in 32 deals. And today, 24 Egyptian fintech companies already enjoy a significant presence in the Middle East and North Africa, particularly in the Gulf countries and Europe.
A recent report analyzing the sector’s performance during the first half of 2022 published by FinTech Egypt on June 21 reinforces this trend. The report found that between January and June, fintech and fintech-enabled investments in the country reached an all-time high of almost $167 million in 31 deals. The report also states that although the majority of investors are still headquartered in Egypt, an increasing number are from the Middle East and North Africa region (24%), the United States (19%), and even China (4%).
This growth has placed Egypt among the top four countries in Africa with the most dynamic fintech sector. However, it is still far from other more consolidated markets such as Nigeria and South Africa, and the second in the region after the United Arab Emirates regarding fintech funding deals and amounts raised. Last year, investments in the sector soared by 300%. According to the platform on startups and venture investments, Magnitt, fintech-led transactions activity among Egypt’s startups accounted for 17% of the total deals closed. Fintech and fintech-enabled startups serve around nine million Egyptians.
Despite the apparent gains recorded over the years, the sector still has a long way to go before reaching its maturity; hence, Arab Financial Services entrant into the Egyptian market is both strategic and timely, considering Egypt’s pride in the region.