E-payment is one of the sectors that have witnessed a significant boom amid the COVID-19 crisis and the associated lockdown measures that governments adopted to contain the spread of the virus, including working from home and the closure of a number of facilities.

In an exclusive interview, Ahmed Gaber, Visa general manager for North Africa, shared with Ahram Online Visa’s expectations for the sector in Egypt in 2021 as well as the E-commerce outlook.

In addition, Gaber told Ahram Online that with 1.7 billion people still without access to banking services, financial inclusion will remain a key priority for policymakers, and 2021 will continue to see the rise of fintech solutions providing financial services to more consumers and expanding payments acceptance.

Ahram Online: How do you see the performance of digital payments in 2020 amid the ongoing COVID-19 crisis?

Ahmed Gaber: There is no going back on the evolution we’ve witnessed within the digital payments industry around the world. The use of contactless and E-commerce payments became part of the public health response to the pandemic and we’ve seen a growing comfort in the use of digital payments among both consumers and merchants.

Hence, we are seeing expedited growth in digital payments as more businesses start to shift online to reach consumers quickly, efficiently, and safely.

The recent Visa Stay Secure report showed that this shift among merchants and users will likely continue even after the pandemic, as they are now aware of different payment methods, including QR code payments, contactless payments, and more.

Contactless payment has been adopted by consumers as they prefer the low-touch aspect of this solution — we’ve recorded almost 900 percent growth in active contactless cards between September 2019 and September 2020.

Additionally, corporates in Egypt have been working on digitising the account receivable payments. Business-to-business payments from buyers to suppliers have also seen increased adoption this year as more corporates have realised the benefits in displacing cash in their business-to-business payment flows using different form factors.

AO: What about your expectations for it in 2021?

AG: The use of contactless payments has become part of the public health response to COVID-19, and we have no reason to believe that it will be discarded once the world returns to its new normal.

As part of the expansion, point-of-sale payments and financing platforms will each undergo major transformations to ensure digital-first options are the way to go.

This is reflected in the progress that we have witnessed in Egypt, as limits on PIN-free contactless transactions have doubled since the start of the pandemic to allow consumers to simply tap-to-pay for larger purchases.

Moreover, adoption of tap-to-pay in Egypt has been increasing on a monthly basis in 2020. We also foresee even more collaboration with the industry, including the government, fintechs, traditional financial industry partners, and merchants as the digital payments ecosystem continues to grow and we see the demand growing among consumers.

AO: E-commerce has witnessed a boom globally since the onset of the pandemic, do you think that shopping online has become a new normal in light of the pandemic’s repercussions?

AG: Definitely. E-commerce has thrived during lockdown and has become the go-to shopping method for most consumers around the world. As of August 2020, the number of E-commerce active cards in the Egyptian market grew by almost 60 percent in one year and almost 17 percent in 4 months.

Visa’s Stay Secure report has also proved that 44 percent of survey respondents have reduced shopping in stores since the outbreak of the pandemic. We believe that these shifts in consumer behaviour are expected to be the “new normal” as more consumers gain confidence in digital payments.

Additionally, we predict that there will be a mainstream emergence of integrated commerce, the ultimate customer experience.

In an unprecedented year for E-commerce, driven by the general need for companies to provide online buying options, curb side pickup, and new forms of delivery, 2021 will further push integrated commerce towards becoming not just a trend but commonplace.

Less friction, new technological advancements for app-centered buyers, and a multi-channel commerce strategy will allow businesses to be even more nimble and meet the constantly evolving needs of their customers.

Also, it’s not just traditional or large companies joining in; around the world, governments are standardising contactless limits, public transport networks are upgrading to contactless payment systems, and small businesses are using this agility to their advantage.

AO: What is your opinion regarding contactless payments as a tool help in protecting lives of people amid the pandemic crisis?

AG: Given the restrictions that the pandemic has imposed, contactless payments have become the ultimate payment solution among consumers for reasons that are mainly related to convenience, safety, and security.

In an effort to support users, Visa partnered with the Egyptian government to increase the limit of contactless payments to EGP 600, given that they are considered the safest, fastest, and most secure method of payment, as they limit physical interaction between people.

AO: Do you think that financial inclusion is still a priority in the “new normal” imposed by the pandemic?

AG: I think that financial inclusion will always be a priority, and the “new normal” has only been contributing to this digital transformation, which will essentially result in the overall advancement of society, benefiting all stakeholders, including businesses, the government, and citizens.

The pandemic has only started paving the way for more innovative digital solutions. Egyptians are now familiar with the various payment methods available, which gives us, as financial solutions providers, the upper hand in sustaining their usage and increasing their trust and awareness of the advantages of different financial solutions.

The government has been exerting a lot of effort to promote financial inclusion and transform into a digital society, and we believe that the “new normal” will help achieve this objective quicker.

AO: What are Visa’s predictions for fintech solutions businesses in 2021 and beyond?

AG: Every day, more people around the world are entering the financial system. With almost 1.7 billion individuals still without access to banking services, financial inclusion will remain a key priority for policymakers, and 2021 will continue to see the rise of fintech solutions providing financial services to more consumers and expanding payments acceptance.

For example, since the launch of Visa’s Fintech Fast Track programme, companies accepted in the program, such as Fawry, are expanding acceptance of digital wallets and QR payments as well as enabling — with the right regulatory framework — peer to peer push payments, helping to extend the benefits of digital payments to more Egyptian consumers and businesses.

AO: What is the volume of Visa’s business in the Egyptian market?

AG: Visa has seen positive growth in Egypt with steady year on year growth, and a recovery in spending over the summer in spite of the absence of travel-related spending, which has historically been where people rely on digital payments quite heavily.

As a result of the pandemic, active contactless cards in Egypt have seen a significant growth of 318 percent and a 516 percent increase in contactless transactions in 4 months. Furthermore, Face to Face payments have been slowly recovering over the summer with 68 percent growth surpassing its highest level back in January 2020.

AO: What are your plans for the Egyptian market in 2021?

AG: We will continue cooperating with the government to support fintechs and create an enabling environment that will enhance financial inclusion efforts, spread the culture of digital payments, and increase their dependence by providing innovative, secure, cashless, financial products, and solutions.

These solutions will be accessible to more people and businesses, meeting the market’s needs, as Visa aims to contribute to the expansion of the acceptance of digital payments among different categories of merchants — especially those who deal with citizens on a daily basis.