The Rise of Online Payment Gateways in Egypt: A Growing Trend
The demand for technology-driven financial services in Egypt is at an all-time high. More people seek safe and easy online payment methods, contributing to an upward trend that shows no signs of slowing down. While cash transactions still dominate, accounting for a significant portion of payments, the landscape is rapidly evolving.
In January 2022, 57% of online transactions in Egypt were completed using Cash-On-Delivery (COD), while only 22% were card-based payments (Statista). However, this trend is shifting as Egypt’s young population, with 63 million people under 30 (about 61% of the population), increasingly turns to online shopping and digital payment methods.
The Shift Towards Digital Payments
According to the Mastercard New Payment Index 2022, 64% of Egyptian users increased their use of digital payment methods in 2021. This shift is significant for e-commerce, as highlighted in the “E-commerce in MENA: Opportunity Beyond the Hype” report by Google and Bain & Company: “There has never been a better time to be in e-commerce in MENA!”
Choosing the Right Online Payment Gateway
When building your ecommerce ecosystem, selecting the right payment gateway is crucial. Here are some essential criteria to consider:
Ease of Use
A user-friendly payment system with minimal steps will attract and retain customers. Integration with other apps and synchronization of bank or card details are significant advantages.
Flexibility and Integration
Opt for payment gateways that support various payment options, including emerging methods like Buy Now Pay Later (BNPL), open banking, and account-to-account payments. In 2021, 88% of Egyptian consumers used at least one emerging payment method, and this usage is expected to rise.
Ensure the payment gateway integrates well with other systems like accounting software or CRM tools to streamline your workflow. Compatibility with physical stores is also a plus.
Security
Security is paramount in online transactions. According to the 2022 Stay Secure Survey, one in three customers cannot recognize a scam, and 80% want to know how to secure their data. Choose highly secure and certified payment gateways that comply with standards like ISO 20022 or ISO/IEC 27001 to protect your business and customers.
Customer Support
Reliable customer support is essential for resolving issues promptly. Ensure the payment solution provider offers quick and effective support that is easily accessible.
Pricing
While other factors are more critical, pricing remains important. Look for a solution offering various payment packages that suit your needs without consuming your profit margins.
Analytics
Clear, real-time analytics help business owners understand their financial standing and make informed decisions. Look for payment gateways that offer intelligent tracking, reporting, and analysis features.
Global Accessibility
If your business serves international customers, choose a payment gateway that supports multiple currencies and card types, ensuring global accessibility.
Best Online Payment Gateways in Egypt
1. Amazon Payment Services (APS)
Amazon Payment Services is a globally recognized platform offering easy online payments, installment services, and payment collection options. It provides a reliable and safe platform for businesses, with clear transaction tracking and analysis.
- Country of origin: USA
- Set up fees: 1,200 EGP
- Recurrent fees: 650 EGP monthly
- Transactional fees: 2.75% transaction fee + 2.5 EGP processing fee per transaction
- Cash-on-Delivery option: Available under certain conditions
- POS terminals: No
Official Website: Amazon Payment Services
2. Fawry
Fawry is a popular payment gateway in Egypt, enabling online transactions, bill payments, and cash withdrawals through POS machines across the country. It offers a reliable platform, loyalty programs, and ticketing solutions.
- Country of origin: Egypt
- Set up fees: 999 EGP
- Recurrent fees: None
- Transactional fees: 2.75% transaction fee + 3 EGP processing fee per transaction
- Cash-on-Delivery option: Yes
- POS terminals: Yes
Official Website: Fawry
3. Khazna
Khazna is favored for its BNPL services, online payments, and upcoming prepaid card for seamless financial transactions. It offers secure transactions, business packages, and adequate customer support.
- Country of origin: Egypt
- Set up fees: Information not available
- Recurrent fees: Information not available
- Transactional fees: Information not available
- Cash-on-Delivery option: Information not available
- POS terminals: Information not available
Official Website: Egypt’s Leading Financial Super App (khazna.app)
4. 2Checkout (Verifone)
2Checkout supports international digital commerce with payments in 87 currencies. It offers global tax, financial, subscription billing, and risk management services. It integrates with major eCommerce platforms and is used by businesses in over 180 countries.
- Country of origin: USA
- Set up fees: None
- Recurrent fees: None
- Transactional fees: 3.5% + $0.35 per transaction (goods), 4.5% + $0.45 per transaction (subscriptions), 6.0% + $0.60 per transaction (digital products)
- Cash-on-Delivery option: Information not available
- POS terminals: No
Official Website: 2Checkout: Online Payment Processing.
5. Paymob
Paymob offers a secure and hassle-free payment platform with robust APIs and fraud detection algorithms. It provides clear transaction visibility and helps businesses make informed decisions.
- Country of origin: Egypt
- Set up fees: None
- Recurrent fees: None
- Transactional fees: 2.75% transaction fee + 3 EGP processing fee per transaction
- Cash-on-Delivery option: Yes
- POS terminals: Yes
Official Website: Paymob | Best Digital payment solutions
6. OPay
OPay is a CBN-licensed platform that allows businesses to make and receive payments, pay bills, and offer installment plans. It features POS machines nationwide and a user-friendly dashboard for tracking transactions.
- Country of origin: Nigeria
- Set up fees: None
- Recurrent fees: None
- Transactional fees: 0.6% transaction fee + 0.5% processing fee per transaction after upgrading to Preferred Merchant status
- Cash-on-Delivery option: Yes
- POS terminals: Yes
Official Website: OPay | We are Beyond Banking (opayweb.com)
Conclusion
The growing trend of online payment gateways in Egypt is set to continue, driven by increasing demand for secure and efficient digital payment methods. By choosing the right payment gateway, businesses can enhance customer experience, ensure security, and streamline operations. Evaluate your options carefully based on ease of use, flexibility, security, support, pricing, analytics, and global accessibility to make the best choice for your eCommerce needs.