Al-Ahly Momken for electronic payment services aims to reach EGP 1bn in transactions volume per month by the end of 2021, and to deploy an additional 40,000 points of service (POS).
The targets come in agreement with the National Bank of Egypt (NBE), after the latter completes the deal to acquire 75% of the company’s shares.
Samir Abu Hashem, Managing Director and CEO of the company, said that Al-Ahly Momken has been planning for vertical expansion since October 2020 based on several axes.
These include: maximising POS revenues; activating the electronic links with small companies; and developing their electronic system and updating the infrastructure network. This expansion has been reflected in the increase in the number of the company’s daily transactions from 250,000 to 1 million.
Abu Hashem estimated the number of POS currently owned by the company at 15,000 points, indicating that the volume of monthly transactions doubled between December 2020 and April 2021.
Speaking to journalists, he noted that the NBE intends to invest EGP 150m in developing the company’s infrastructure network, and denied the existence of any future intentions to sell additional shares of Al-Ahly Momken.
He stressed that the company is betting on the speed of implementation of the process through its network, and ensuring the provision of service to customers without system failures compared to competitors.
Abu Hashem also indicated that Al-Ahly Momken and the NBE have agreed to deploy an additional 40,000 POS in the local market during the second half (H2) 2021. This would see the numbers grow by 3,600 POS every month, to bring transactions to EGP 1bn per month.
He hinted that his company has completed the development of the first new electronic system that seeks to automate the instalment system of the micro-economic sectors, such as electrical and household appliances. This would allow for a link to be created between their online transactions and Al-Ahly Momken’s points of sale.
He pointed out that, in the past year, the company joined the initiative set up by the Central Bank of Egypt (CBE) to deploy 100,000 POS, through an agreement with QNB Al-Ahly and Banque Misr.
In May 2020, the CBE launched an initiative to activate electronic payment (e-payment) as part of the precautionary measures it has put in place to confront the novel coronavirus (COVID-19) pandemic.
This was with the aim of effectively maximising the banking sector’s contribution to the state’s plan to deal with the potential repercussions of the pandemic. The initiative also aims to strengthen the infrastructure of payment systems, provide various electronic means to help it spread digital financial services, and achieve higher rates of financial inclusion.
Abu Hashem revealed that NBE’s has gained a 75% majority stake in Al-Ahly Momken’s shares, while the remaining percentage has been distributed among old shareholders.
A total of 18.1% of the company’s shares are owned by Abu Hashem, whilst 6.9% are in favour of two other partners. The value of the NBE acquisition deal that took place last March is estimated at about EGP 97m.
He pointed out that the process of transferring the ownership of shares to the NBE was carried out during the holy month of Ramadan. This indicates that the company’s Board of Directors currently includes five new representatives from the bank.
Abu Hashem added that the company recorded transactions in 2020 at a value of EGP 1.75bn, compared to EGP 1.05bn in 2019. This comes despite the absence of any increase in the number of points of sale, but that the COVID-19 crisis contributed to a remarkable growth of no less than 20%.
The second phase of Al-Ahly Momken’s plan, after the implementation of the acquisition process, is based on providing all digital banking services provided by the NBE to its customers through its platform.
This includes cash in and out, corporate services, electronic collection, and electronic acceptance of all types of bank cards within a period ranging from three to four months after obtaining the PCI certificate
Abu Hashem pointed out that the company plans to later provide lending and savings services, and implement funds deposit transactions through the company’s machines to consumers and merchants. This will ensure that the company plays the role of a bank agent for the benefit of the NBE.
He noted that the sister company, Al-Ahly Tamkeen, obtained a microfinance licence from the CBE, and eight branches were established in March in cities in Upper Egypt.
He stressed that Al-Ahly Momken also intends to collect the instalments of Al-Ahly Tamkeen customers at a later stage, provided that the latter assumes the role of the credit inquiry.
This indicates that the loan service for small- and medium-sized enterprises (SMEs) and consumer financing for individuals will be available through Al-Ahly Tamkeen at a value of EGP 5,000 to EGP 50,000.