The Ministry of Supply and Internal Trade and the Ministry of Planning have signed a memorandum of understanding (MoU) with Visa International on Tuesday to study the current subsidies system.
The MoU also aims to suggest an action plan to upgrade the system into an open integrated payment system, with the cooperation of Egyptian banks.
The cooperation between the three institutions aims to provide multiple options for beneficiaries of subsidies and facilitate their access in a sophisticated, secure, and transparent manner.
The MoU suggests that Visa will cooperate with both ministries in order to complete the studies as soon as possible and propose solutions that will strengthen the subsidies system.
Egyptian banks and e-payment systems will also be supported, in order to provide for the citizens’ various needs through international technologies.
Visa will also study ways to promote usage of e-payments through traders and bakeries involved in the subsides system, as well as providing them with the latest e-payment tools. The international company will benefit from the vast spread of mobile phones in Egypt, so as to enable citizens to complete their dealings with the subsidies system smoothly and safely.
The MoU obligates Visa to commit to providing its latest innovations in the e-payments sector in order to support the Egyptian subsidies system and provide the highest international security standards and risk management.
Head of Global Financial Inclusion at Visa Stephen Kehoe said the MoU is a step towards financial inclusion, which is the foundation for strengthening economies and providing financial services to various segments of society.
General Manager of Visa for North and West Africa Tarek El-Husseini said Visa’s international expertise in assisting governments to develop subsidies systems, particularly in Latin America, qualifies it to cooperate with the Egyptian government to implement this ambitious project.
He added that this partnership will contribute to increasing reliance on electronic payments, which currently stands at less than 2% of the total value of annual expenditure in Egypt, estimated at just over $200bn.