The number of payment cards-in-force (CIF) in Eqypt hit 17.0 million in 2014, compared to 10.0 million five years ago, growing at a compound annual growth rate (CAGR) of 11.2%. The Egyptian economy is the second-largest in the Middle East after Saudi Arabia.
In terms of transaction value, payment cards valued to EGP161.7 billion (US$23.5 billion) in 2013, after registering a CAGR of 9.07% since 2009.
According to report marketed by ReportLinker credit transfers and payment cards were the preferred payment instruments in Eqypt, having a combined industry share of 94.6% in terms of transaction value in 2013. The share of payment cards is increasing as the government and banks are increasing the awareness levels and benefits among consumers and merchants.
In 2013, the average transaction value (ATV) in Egypt was US$97.7, which was the lowest among Egypt’s peer countries: Oman, Kuwait, Saudi Arabia and the UAE. Kuwait recorded the highest ATV with US$919.6, followed by the UAE with US$263.1, Oman with 207.4 and Saudi Arabia with US$128.8.
In terms of card penetration, Egypt recorded 0.18 cards per inhabitant in 2013, while the UAE recorded 1.96, Kuwait recorded 1.32, Oman recorded 1.03 and Saudi Arabia recorded 0.69. In terms of frequency of use, Egypt recorded 15.7 transactions per card in 2013, while Saudi Arabia recorded 91.1, Kuwait recorded 47.7, the UAE recorded 43.1 and Oman recorded 13.4.
ReportLinker notes in July 2014, the newly elected President Abdel Fattah El-Sisi announced a wide range of reforms, introducing new taxes, increasing selected taxes, and reducing energy subsidies which are anticipated to spur economic growth over the forecast period (2014-2018). Other Arab countries including Saudi Arabia, the UAE and Kuwait have committed around US$20.0 billion to Egypt, through a mix of central bank deposits, cash grants, in-kind grants, and project aid, of which about US$15.0-16.0 billion was received as of June 2014, according to the World Bank. The reforms are anticipated to have a positive effect on the cards and payments industry.
For more data on Middle East Payments access CardData®. For information and commentary on Middle East Payments visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. RAM Research® forecasts on Middle East Payments are available exclusively through CardWeb.com.®