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Find out more2025 is set to be a game-changer for the MENA region, with legal and regulatory shifts from 2024 continuing to reshape its economic landscape. Saudi Arabia, the UAE, Egypt, Iraq, Qatar, and Bahrain are all implementing groundbreaking reforms in sustainable financing, investment laws, labor regulations, and dispute resolution. As the region positions itself for deeper global integration, businesses must adapt to a rapidly evolving legal environment.
Our Eyes on 2025 publication provides essential insights and practical guidance on the key legal updates shaping the year ahead—equipping you with the knowledge to stay ahead in this dynamic market.
The Central Bank of Egypt (“CBE”) issued on 8 March 2023 regulations for Payment Cards Tokenization on Electronic Devices’ Applications (the “Tokenization Regulations”) which come as key step in achieving Egypt’s vision for financial inclusion and more heightened cash-free society.
The Tokenization Regulations are intended to capsulize the infrastructure requirements for banks and tokenization service providers to avail and implement card tokenization services. Said Regulations are further intended to enhance the digital payments’ eco system by availing and maximizing access to banking services.
In a nutshell, tokenization is a process of substituting the actual card details (and thus the sensitive payment credentials of the cardholder) with a unique randomly generated code, being the ‘token’. The tokenization encourages public use of digital payment methods given that the token is uploaded on the electronic device as part of the virtual profile of the cardholder and the payment transaction would be then initiated by a near field communication (NFC) device or other relevant channel. In this case, the token (when verified) represents and replaces the payment card.
To that end, the Tokenization Regulations mandate that all ‘acquirer banks’ (being banks authorized by the CBE to provide payment acceptance and settlement services) to activate the NFC tool on all its points of sale (POS).
The Tokenization Regulations apply to all banking institutions licensed as such and operating in Egypt as well as the tokenization service providers (“TSPs”) that are licensed by the CBE. The Regulations also govern the provision of card tokenization related services.
The Tokenization Regulations set forth the minimum standards and requirements that banks and TSPs should observe while availing the tokenization infrastructure and payment systems.
Issuer banks wishing to obtain licenses to offer Card Tokenization services to its customers must file a licensing request to the Banking Affairs Department of the CBE. The license request should be submitted in pertinence with each application through which the bank would avail payment via the tokenization service.
The competent department of the CBE should be furnished with, among other requirements, the following:
For more information regarding the Tokenization Regulations, please contact Zeinab Shohdy.
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