RIYADH: Egypt’s digital money transfer firm Fawry is in talks with Saudi Payments, the operator of the Kingdom’s national payment infrastructure, to explore licensing and certification opportunities in the market.
The move is part of its regional expansion plans into the Gulf Cooperation Council region, Fawry said in a press release.
The release stated that the discussions are likely to conclude by the end of the year.
Operated and managed by the Saudi Central Bank, the payment network, also known as Mada, has been working toward encouraging innovation and strengthening the financial sector in the country.
“The Kingdom of Saudi Arabia has a large and promising financial sector, characterized by strong competition in payments and high liquidity, which promotes competition and innovation among all market players,” said Fawry CEO Ashraf Sabry in the statement.
Additionally, Fawry is considering entering the digital banking space in its home country after the Central Bank of Egypt issued new regulations allowing customers to access banking services only through digital channels and platforms.
“The new regulations laid out by the CBE on digital banking are also a welcome change and potentially present an attractive opportunity for Fawry to expand its service offering in Egypt,” Sabry added.
“As a leader in innovative e-payment solutions in Egypt, Fawry will be able to unlock potential value for the Saudi market and its consumers,” he continued.
Kingdom’s fintech ambition
Earlier this month, the Kingdom’s payment network provider granted a gateway certification to the Kuwait-based financial technology firm Tap Payments.
With the new certifications, the company was positioned as a provider of payment gateways. It became one of the region’s first fintech companies to develop its proprietary gateway technology and win Mada certification.
Under its development plan, Saudi Arabia wants to increase the number of fintech companies in the Kingdom to 525 while creating 18,000 jobs.
By 2030, the Kingdom intends to increase venture capital investments to $3.2 billion and the sector’s direct contribution to the gross domestic product to $3.5 billion.
These companies can extend their product offering and solutions by utilizing Mada’s technological stack, which includes numerous advanced payment features.