The Capgemini Research Institute’s 2023 World Payments Report has revealed that non-cash transaction volumes will reach 1.3 trillion globally by 2023, whilst according to Statista, the Egyptian market is expected to reach US$16.34bn in 2023.
The report suggests this growth will accelerate to 2.3 trillion by 2027 globally, growing at a rate of 15% annually as consumers and businesses continue to adopt new digital payment schemes.
In Egypt, digital payments’ total transaction value is expected to show an annual growth rate of 14.03% resulting in a projected total amount of US$27.63bn by 2027.
The expanding digital payment infrastructure, regulations, and open banking are swiftly changing how customers and businesses pay for goods and services. The volume of non-cash transactions in Egypt increased by 46% in 2023, reaching a value of EGP10 trillion, according to a report by the Central Bank of Egypt (CBE).
Card payments were the country’s most popular non-cash payment method accounting for 46% of all transactions. However, it noted that new payment methods such as instant payments, e-money, digital wallets, account-to-account, and QR code payments are gaining popularity among consumers and merchants.
“In an era marked by remarkable digital transformation, Egypt’s payments landscape is evolving at an unprecedented pace,” Eng. Hossam Seifeldin, CEO of Capgemini Egypt, said.
He added: “The surge in non-cash transactions and the increasing adoption of new digital payment methods reflect the market’s dynamic evolution. This reflects a substantial shift in how businesses and consumers engage within Egypt’s economy.”
Capgemini’s report revealed over half of corporate treasurers believe the rising globalization of trade and ongoing supply chain disruptions have driven demand for effective and efficient cash management services (CMS). Another third said evolving risks such as geopolitics, and cybersecurity made CMS critical, while nearly 30% marked rising inflation as a reason to improve cash management.
New payment solutions and key industry initiatives are fueling the growth of digital payments among enterprises. Expectations are also changing, with 63% of corporate clients demanding a retail-like payment experience from their banks in 2023, the report said.
Jeroen Hölscher, Global Head of Payments Services at Capgemini added: “The current model of tackling cash management services needs an overhaul. Corporate executives are feeling the pressure from mounting inefficiencies across lengthy cash conversion cycles. What’s clear from our report is that a robust digital foundation is the path forward to optimize the value chain. By simplifying the inherent complexity of their own operating and IT models, banks and payment firms can boost productivity and performance to manage client treasury needs.”