Umniah Ibrahim – The Board of Directors of the Central Bank of Egypt, headed by Tareq Amer, decided to launch a huge e-payment initiative.
The new initiative comes within the framework of the precautionary measures to tackle the Corona virus and maximize the banking sector’s contribution to implementing the country’s plans to deal with the possible consequences of the virus.
The initiative also comes in the context of the importance of providing all financial services to citizens in a fair, safe, easy and affordable manner, and in light of the challenges facing electronic acceptance in Egypt, including, for example, the need to increase the number of points of sale, and rely more on the rapid response code and geographical distribution of points of acceptance Electronic, and develop programs to raise awareness of the importance of electronic collection.
Details of the initiative
First – Disseminating and activating POS electronic points through Acquirer Banks that have an electronic acceptance license through electronic points of sale:
A – Publishing electronic points of sale:
In the new initiative, the Central Bank of Egypt will finance the publication of one hundred thousand new electronic points of sale, which are distributed geographically in all governorates and activated from the date of the initiative until the end of December 2020.
The acquirer banks will purchase and publish the electronic sales points, taking into account the following determinants:
Taking into account the geographical distribution of new merchants in the governorates according to an indicative distribution that was attached to the initiative that was sent to the banks.
Prioritize vital or high-density sectors for paper cash transactions such as gas stations, supermarkets, and pharmacies.
– Commitment to the minimum specifications of electronic POS and Mini POS.
Putting the phrase (dedication from the Central Bank of Egypt) on these machines.
– The use of machines is limited to new companies and merchants from the private sector who are not registered with any other midwife banks, and the bank is obligated to ensure that there are no other electronic point of sale machines belonging to banks or facilitators of payment processes at all merchants and target companies to publish the mentioned electronic sales points, and the bank may Obtaining a declaration from the merchant as one of the means to verify this.
– Machines may not be used in any closed system, as machines must accept all cards issued by all networks licensed by the Central Bank of Egypt to operate in Egypt, and machines may not be used in the processes of replacing and renewing existing machines with the bank.
• The central bank grants an incentive between 1.5 to 4 thousand pounds for each electronic selling point installed
– The central bank makes an incentive for each electronic point of sale that is installed ranging between 1500 and 4000 pounds, according to the type of machine and its geographical location.
– The necessity of training the merchant to use the points of sale, the rapid response code, contactless operations and setting distinctive signs at the merchants, indicating to the clients that he accepts this type of payment.
– Compliance with the central bank rules for technology services providers for payments and facilitators of electronic payment transactions issued by the Central Bank of Egypt in March 2019 in the case of the use of companies from payment processors.
– The bank or the facilitators of the payment operations do not charge companies or merchants any additional amounts in exchange for providing electronic points of sale.
The failure of the payment process facilitators to download more than one payment application on the machines, provided that the program is approved by the bank.
– Developing marketing plans and plans to motivate merchants to use electronic collection channels, provided that electronic collection takes into consideration an amount in excess of 6 thousand pounds per month for each point of sale in the same governorates (category A), and 12 thousand pounds per month for each point of sale for governorates of category B.
– The bank’s commitment not to add a profit margin in excess of 0.3% from the exchange commission of the national payment system in transactions made using national payment cards, as well as the average exchange commission specified by companies with an international acceptance mark.
B – Activating electronic sales points
- Incentive incentive for banks that are open for 3 months, 0.5% of the total value of buying and selling transactions through machines
With regard to the mentioned machines, an activation incentive is allocated at 0.5% of the total value of the transactions of sale and purchase that take place through the machines, allocated to the midwife banks for a period of 3 months beginning after the end of the period of exemption from the fees mentioned in the periodic books on 15 and 20 March 2020.
The incentive is disbursed to banks that collect a monthly payment of 6 thousand pounds for points of sale in the governorates of category A, and 12 thousand pounds for governorates of category B, for all points of sale that the bank operated.
The Central Bank shall pay the incentive for installing the machines and the incentive for activating them according to a monthly report submitted by the midwife banks to the Central Bank of Egypt, which includes the following:
1- A detailed statement of the number of new merchants and the number and types of new machines activated geographically distributed in the governorates of the Republic according to the classification of governorates attached to the initiative.
2 – The total values and number of purchase transactions using electronic points of sale for each point activated by the bank, according to the determinants mentioned in the first item of the initiative.
3 – The detailed value due for addition based on the specifications mentioned in the first item.
Second: With regard to electronic acceptance of the QR code
A – Posting the QR code through the banks that have a license for electronic acceptance via the QR code:
The central bank will pay an incentive to midwives to add new merchants to that system, according to the following:
An incentive exchange for spreading the QR Code with new merchants and companies from the private sector
– The incentive exchange is limited to publishing the rapid response code with companies and new merchants from the private sector, the absence of the merchant in the system of accepting the rapid response code or electronic points of sale at the bank or any other receptive bank and the commitment of the bank to verify this, and the bank can obtain approval from The merchant as one of the means of verification.
The rapid response code indicated in the collection may not be used for any closed system.
– The bank that commits the trader is obligated to train the merchant to use the rapid response code in electronic collection operations and to place distinctive signs at the merchants to show customers that they accept this type of payment.
– Compliance with the central bank rules for payments technology services providers and facilitators of electronic payment processes issued by the central bank in March 2019 in the event that companies seek help from payment processors.
– The bank or facilitators of the payment process may not charge companies or merchants any additional sums for the provision of the rapid response code.
– Develop marketing and plans to motivate merchants to use the rapid response code
• 3 thousand EGP bonus for every 150 new quick response codes and 0.5% activation bonus
– The incentive for the added addition is estimated at 3 thousand pounds for every 150 new rapid response codes, starting from the date of the initiative until the end of December 2020.
B – Activate the acceptance of the rapid response code through the issuing bank and the banks that are able to wallet the mobile phone:
In light of the need to ensure that the QR code is activated, a 0.5% activation incentive is allocated that is calculated on the total values of the purchase transactions that were made using the QR code for a period of three months starting after the end of the period of exemption from the fees mentioned in the periodic books on 15 and 20 March 2020, provided that The bank that can share that incentive is divided 50/50 with the issuing bank.
The Central Bank shall pay the aforementioned incentives to the midwife banks at the end of each incentive period, based on a report from the midwife that includes the following:
1 – A detailed description of the number of new merchants and the active rapid response codes distributed geographically on the governorates of the Republic.
2 – The total values and number of purchase transactions using the rapid response code, indicating the operations that were made by payment tools issued by other banks Off-us, provided that the number and value of the transactions executed using payment tools issued by each bank are determined separately.
Banks are required to adhere to the following:
• Midwife banks launched a unified advertising campaign to raise awareness of the benefits of electronic payment
– Acquirer Banks obtaining an electronic acceptance license launch a unified advertising campaign to raise awareness of the advantages of electronic payment using electronic points of sale and the rapid response code, and current exemptions related to electronic collection service fees, in order to entice customers of payment instrument users and merchants to pay electronic collection, provided that Federation of Egyptian Banks in coordination with banks to design, implement and launch the campaign.
– All banks issuing electronic payment tools (payment cards or portable wallets) are obligated to prepare incentive programs for their customers to increase the issuance and use of electronic payment tools issued through them in electronic payment operations, provided that the banks issuing electronic payment tools are obligated to provide the Central Bank with the details and limitations of those programs. And provide him with monthly reports that include the following:
A _ A statement for each electronic payment instrument issued by the bank and the number and values of its electronic payment transactions.
B- A statement of the numbers and types of new electronic payment instruments issued by the bank.