There are reasons why e-finance, Egypt’s premier fintech entity, has strategically acquired significant stakes in two of the leading digital payment providers, Al Ahly Momken and EasyCash.
This acquisition sees e-finance taking a 25% stake in Al Ahly Momken and a 13% stake in EasyCash, and is set to catalyze innovation and broaden the reach of digital financial services throughout the nation.
Al Ahly Momken, a dominant force in the digital payments arena, serves a vast network of over 90,000 merchants and caters to more than 5 million customers. The company boasts an impressive annual transaction volume, processing around 750 million transactions worth approximately EGP 39 billion.
EasyCash, licensed by the Central Bank of Egypt in 2019, is another key player that provides a wide array of payment services to individuals, merchants, and businesses, with plans to expand its merchant base to 95,000 within the next three years.
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Partnership improves e-finance’s technological prowess
This strategic partnership is anticipated to leverage e-finance’s technological prowess and infrastructure to spawn new and innovative digital payment products and services. Ibrahim Sarhan, Chairperson and Managing Director of e-finance, emphasized that the acquisitions align with the Group’s investment strategy to maximize shareholder returns and finance growth through value-adding investments.
The collaboration is also significant due to the National Bank of Egypt’s role as the largest strategic partner in both Al Ahly Momken and EasyCash, adding weight to the transactions. The involvement of e-finance is expected to provide a substantial opportunity for both companies to enhance their operations and increase their market share by facilitating the provision of new digital payment products and services.
This move by e-finance is a clear indicator of its commitment to supporting the Egyptian government’s Vision 2030 for digital transformation. It marks a pivotal step in the fintech company’s journey to revolutionize the digital payment landscape in Egypt, setting a precedent for the integration of technology in financial services and paving the way for a more inclusive digital economy.
More about e-finance’s investment strategy
e-finance’s investment strategy is centred around leveraging its position as a leading developer of digital payment infrastructures to drive growth and innovation within Egypt’s fintech space. Here are some key points about their strategy:
E-finance aims to develop comprehensive digital services that span the entire payment value chain. This includes network development and operations, smart card production and management, and e-commerce platforms for various sectors. The company plays a crucial role in the Egyptian government’s digitization efforts as It focuses on developing integrated platforms that lead Egypt’s digital revolution, aiming to enhance the ICT sector, boost competitiveness, and attract foreign investment.
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E-finance has reported strong financial performance, with significant year-over-year growth in revenue, EBITDA, and net income. This financial health allows them to invest in strategic initiatives and emerging market opportunities. The company’s management team is described as highly seasoned and prudent, enabling e-finance to achieve operational gains and meet strategic objectives. They maintain a dynamic management style to adapt rapidly to market trends and identify new opportunities.
In Technology investment, e-finance is committed to maintaining its leadership position. For example, they plan to invest over EGP 2 billion in the next two years, which will likely go towards enhancing their digital offerings and expanding their market reach. As part of its growth strategy, e-finance actively seeks strategic acquisitions, like the recent stakes in Al Ahly Momken and EasyCash, to expand its capabilities and market presence in the digital payments sector. E-finance’s investment strategy is designed to create long-term, sustainable value for its stakeholders by focusing on technological innovation, strategic partnerships, and alignment with national digitization goals.