Digital Payments Soar in Egypt: SMEs Embrace Technology for Growth

Digital Payments Soar in Egypt: SMEs Embrace Technology for Growth
Cairo, Egypt – August 4, 2025 – A new report by Visa, titled ‘Value of Acceptance: Understanding the Digital Payment Landscape in Egypt,’ reveals a significant surge in digital payment adoption among Egyptian businesses, particularly small and medium-sized enterprises (SMEs). The findings, announced on July 28, 2025, underscore a growing recognition of digital payments as a crucial investment for business growth and customer satisfaction.

Over half (53%) of merchants surveyed have embraced digital payment technologies in the past two years, demonstrating an accelerated shift in the market. This momentum is further supported by the fact that 55% of cash-only merchants express interest in adopting these technologies, signaling a promising future for a more digital economy in Egypt.

Digital Payments Drive Business Benefits and Satisfaction

The report highlights a strong correlation between digital payments and positive business outcomes. A remarkable 80% of SMEs currently using digital payments report high satisfaction with the process, with over three-fourths noting a positive impact on revenue and more than two-thirds observing an increase in footfall. This positive feedback reinforces the tangible benefits businesses are experiencing from integrating digital solutions.

Beyond basic transactions, Egyptian SMEs are actively seeking value-added services and integrated solutions. This includes loyalty programs, enhanced security features, and access to data-driven insights, all of which are seen as vital for driving business growth, improving customer experience, and boosting operational efficiency.

For cash-only SMEs, the demand is for simple, user-friendly digital solutions that replicate the ease of cash transactions, complemented by educational programs to address misconceptions and incentives to facilitate the transition.

The outlook remains highly optimistic, with 77% of surveyed SMEs believing that digital payment technologies will fuel their business growth. Additionally, over half (55%) of Egypt's cash-only merchants plan to acquire Point-of-Sale (POS) systems, indicating a clear intention to move towards digital acceptance. The thriving e-commerce market in Egypt is also a key driver, with 59% of surveyed merchants newly accepting online payments and 53% utilizing social media for transactions.

Leadership Perspectives on Egypt's Digital Transformation

Malak El Baba, Vice President and Egypt Country Manager at Visa, commented on the findings, stating, "The research findings paint a promising picture of Egypt’s growing digital payments landscape. The increasing preference for digital transactions, coupled with the recognized benefits for businesses and the broader economy, created a shift in how businesses and consumers embrace digital payments across the region. The acceleration of digital acceptance not only unlocks new opportunities for merchants of all sizes but also strengthens the foundation of inclusive economic growth."

El Baba further emphasized Visa's commitment to this transformation, highlighting the partnership with Egypt’s Micro, Small and Medium Enterprise Development Agency (MSMEDA) as a vital step in empowering the SME sector, a cornerstone of Egypt's economic growth.

Bassel Rahmy, CEO of MSMEDA, reiterated the significance of this collaboration, emphasizing its alignment with the national drive toward digital transformation and financial inclusion. He noted that cooperation with Visa aims to simplify financial transactions for business owners through advanced electronic payment solutions and e-invoices, which in turn enhances project management and access to funding. MSMEDA also prioritizes training for entrepreneurs in modern market tools, including digital marketing and financial management, to help them formally join the economy and benefit from tax incentives under Law 152/2020 and Law 6/2025.

Essam El Daly, Head of Merchant Sales and Acceptance Solutions in North Africa, Levant and Pakistan Region at Visa, added a regional perspective: "Across North Africa, Levant, and Pakistan, we are witnessing a transformative shift as small and medium businesses embrace digital payments. Enabling acceptance is not just about technology — it’s about building a comprehensive end-to-end payment ecosystem that empowers SMBs to thrive in the digital economy." He underscored Visa's dedication to supporting this segment with innovative solutions, from secure payment gateways like CyberSource to commercial cards and educational programs such as Tap to Phone.

Addressing Challenges for Full Potential

Despite the positive trajectory, the report identifies challenges, notably the concern about fraud and robbery related to cash among 41% of surveyed SMEs. This highlights the need for ongoing education and targeted interventions to reinforce the security and transparency of digital payments. Promoting success stories that illustrate the long-term growth opportunities associated with digital transactions can further strengthen the confidence of cash-only merchants.

Digital payments are proving to be crucial for Egyptian SMEs by boosting revenue through a wider customer base, improving customer satisfaction with faster transactions, and reducing operational risks associated with cash handling. Furthermore, digital transaction records provide valuable data that can facilitate access to financing, thereby stimulating growth.

Beyond direct business benefits, digital payment adoption contributes significantly to economic growth and financial inclusion, integrating the unbanked into the financial system and providing access to savings, credit, and insurance. Research suggests that a transition to a digital economy can generate 1-2% annual GDP growth, with a mere 1% increase in card usage contributing an average of $67 billion.

Visa remains a key partner in Egypt's digital economic transition, offering a range of capabilities, programs for specific merchant segments, and innovations like Tap to Phone, Contactless Payments, and Click to Pay, alongside educational resources.

The ‘Value of Acceptance: Understanding the Digital Payment Landscape in Egypt’ report was conducted by 4Sight Research & Analytics, based on face-to-face interviews with 270 SME owners/managers across Egypt.