InstaPay: How CBE Made a Difference in Financial Transaction Digitization

The Central Bank of Egypt has gained significant importance in recent years for expanding the use of financial technology among bank customers and the general public.

As a part of its comprehensive plan to enhance digital transformation and financial inclusion, supported by the political leadership's commitment to uplifting the country and building a new republic where citizens can enjoy a decent life with digital financial tools that facilitate their lives and help integrate the informal economy into the official system while reducing Money printing costs.

The Egyptian Central Bank has been dedicated to finding innovative and effective solutions that contribute to real added value. One of the notable innovations is the implementation of InstaPay, which is considered one of the most important applications for online banking transactions and mobile applications.

The launch of the new instant payment network was a significant step towards achieving the comprehensive vision for national payment systems, ensuring the independence of payments within Egypt, and supporting the goals of the National Payments Council in transitioning to a society that relies less on cash and facilitates secure, efficient, and real-time financial transactions for citizens.

InstaPay offers several advantages, including linking and accessing all user accounts in banks directly through the application, transferring funds, and confirming receipt of transfers. It also allows linking prepaid cards offered by participating banks and transferring funds between bank accounts, instant payment addresses, mobile phone numbers, e-wallets, or any other eligible card.Additionally, it enables sending payments through various methods, including instant payment addresses, phone numbers, wallet numbers, bank account numbers, international bank account numbers, or feature card numbers. Users can verify recipient data as registered with the bank before sending funds to ensure they are always sent to the intended party. They can also view a summarized account statement for any linked bank account within the application.

Banks quickly joined the application due to its numerous benefits, with approximately 28 banks joining since its launch in March 2022 until now.

InstaPay has gained wide acceptance among bank customers, as reflected in the positive feedback and the significant demand for it. By the end of 2022, it recorded a transaction volume of around EGP112.7 bn, a total of 20.3 million transactions. The total number of registered customers reached 2.16 million by the end of the same period.

This opens up new horizons for Egyptian banks, emphasizing the need to create new innovations that enhance their presence, satisfy their customers, and provide them with competitive advantages. This is especially important considering the large segments of customers who prefer electronic transactions over traditional ones at bank branches, along with the increased awareness of this type of interaction.