Visa has released a new report titled Value of Acceptance: Understanding the Digital Payment Landscape in Egypt, which outlines the growing momentum for digital payments among SMEs in the country.
According to the report, more than half (53%) of surveyed merchants have introduced digital payments in the past two years, while 55% of cash-only businesses are considering adoption.
Satisfaction levels are high among those already using digital payment systems: over 80% report being content with card acceptance, more than three-quarters say it has positively impacted revenue, and two-thirds note an increase in footfall.
Egyptian SMEs are also expressing interest in services that extend beyond basic transaction processing.
These include loyalty schemes, improved security features, and tools that offer insights from transactional data, all seen as avenues for enhancing customer experience, improving operations, and supporting business growth.
For businesses that still rely on cash, there is clear demand for digital solutions that are straightforward, intuitive, and comparable in ease to cash transactions.
Respondents also cited the need for educational support to address concerns or misconceptions, along with incentives to aid in the shift to digital systems.
The outlook for continued adoption appears strong, with 77% of SMEs agreeing that digital payments will help drive their business growth, and 55% of cash-only merchants saying they intend to acquire point-of-sale (POS) systems.
The growth of Egypt’s e-commerce sector is another contributing factor.
The study found that 59% of merchants surveyed had recently started accepting payments online, and 53% now accept payments through social media platforms.
Malak El Baba, Vice President and Egypt Country Manager at Visa, said:
“The research findings paint a promising picture of Egypt’s growing digital payments landscape. The increasing preference for digital transactions, coupled with the recognised 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. Visa is committed to working with our partners across the ecosystem to unlock the full potential of digital payments for all Egyptians, individuals and businesses alike.”
She added that Visa’s partnership with Egypt’s Micro, Small and Medium Enterprise Development Agency (MSMEDA) plays an important role in advancing the country’s digital transformation goals and supporting a sector central to national economic development.
Bassel Rahmy, CEO of MSMEDA, said the partnership complements government efforts to modernise and support SMEs:
“Cooperation with Visa aims to facilitate financial transactions for business owners of all types by providing advanced electronic payment solutions and introducing electronic invoices. This contributes to easier project management, enhances their opportunities to obtain funding and technical support, and positively impacts their ability to operate, sustain, and grow.” He also noted that the agency places a strong emphasis on providing SMEs with training in digital marketing and financial tools, enabling more businesses to enter the formal economy and benefit from legislative incentives under Egypt’s enterprise development laws.
Despite the overall positive trajectory, the report identifies several challenges.
Security remains a concern for many, with 41% of SMEs citing fear of fraud or robbery related to cash handling.
Education campaigns and examples of successful digital adoption could help address these worries and encourage uptake among hesitant merchants.
The report suggests that digital payment adoption can bring a range of benefits, from revenue growth and improved customer satisfaction to reduced risks and better access to finance.
Beyond business advantages, digital payments also support financial inclusion and economic development.
Research cited in the report indicates that a 1% rise in card usage can generate an average of US$67 billion in economic activity globally.
Visa continues to expand its role in enabling Egypt’s digital economy through various programmes tailored to merchants’ needs, including contactless and click-to-pay options, as well as business education initiatives.
The Value of Acceptance report, conducted by 4Sight Research & Analytics, is based on face-to-face interviews with 270 SME owners and managers in Egypt who are directly involved in everyday business decisions.
Featured image credit: Edited by Fintech News Middle East, based on image by Freepik
