CBE approves OPay to issue prepaid cards to help digital finance reform in Egypt
Emerging market fintech unicorn OPay received preliminary approval from the Central Bank of Egypt (CBE), to partner with Masria Digital Payments (MDP), Egypt's largest card provider, to issue prepaid cards in Egypt. OPay plans to issue 200,000 prepaid cards in the first phase, which will provide Egyptian users with convenient and fast non-bank financial services and promote the arrival of Egypt's cashless society.
According to a March report from Research and Markets, the world's leading market analysis agency, the prepaid card market (value terms) in Egypt increased at a CAGR of 14.9% during 2017-2021. Over the forecast period of 2022 to 2026, the market is expected to record a CAGR of 16.2%, increasing from $2.75 billion in 2022 to reach $5.00 billion by 2026.
OPay plans to issue 200,000 prepaid cards in the first phase to provide digital payment solutions for the local market. For example, customers can deposit funds without opening a bank account and use them for cash withdrawals and shopping payments, which helps In order to further meet the needs of OPay customers for more convenient and accessible non-bank financial services.
Mahmoud Khader, Head of Business Development and Strategic Partnerships, OPay: "We are very pleased to cooperate with the Egyptian Card Company to issue prepaid cards, as it provides more than one payment option, which will greatly contribute to continuing our endeavours to provide the best non-banking services to our customers through a smooth and easy system represented in prepaid cards, which enables them to benefit from its services in buying and selling operations and to meet their financial needs whenever and wherever they are."
OPay formed a partnership with Banque Misr, Egypt's second largest state-owned bank, in January this year to provide electronic collection services to merchants and small and medium-sized enterprises of the bank's partners. By continuously establishing cooperation with large local financial institutions in Egypt, OPay is changing the pattern of Egypt's financial market and helping Egypt's digital economy to flourish.
In August 2021, OPay completed a $400 million Series C financing. This round of financing was led by SoftBank Vision Fund 2, followed by Long-Z Capital, Sequoia Capital, RedPoint China, Source Code Capital, SoftBank Ventures Asia, and 3W Capital. cast. After this financing, OPay has become a new financial technology unicorn in Emerging Markets, with a valuation of $2 billion. Previously, OPay completed a total of $120 million in Series B financing on November 18, 2019.
