Central Bank of Egypt launches smartphone-based POS service

By Vriti Gothi

The Central Bank of Egypt (CBE) has launched a contactless electronic payment acceptance service that enables merchants to accept card payments directly through smartphones and tablets, marking a further step in the country’s transition toward digital payments.

Announced on 1 February, the service allows merchants to download a Soft POS (point-of-sale) application that transforms compatible smart devices into payment acceptance terminals. Through the application, merchants can accept payments from various types of contactless cards, with card PINs entered securely on the device in line with internationally accredited security standards.

The initiative forms part of the CBE’s broader strategy to reduce reliance on cash, expand financial inclusion, and support Egypt’s Vision 2030 objectives. By enabling mobile devices to function as payment acceptance points, the central bank aims to widen access to electronic payments, particularly for small and micro enterprises that may have previously faced cost or infrastructure barriers.

Unlike traditional POS terminals, which require dedicated hardware and ongoing maintenance, the Soft POS model removes the need for merchants and payment service providers to purchase or service physical devices. This is expected to lower operational costs and accelerate onboarding into the formal electronic payments ecosystem.

The CBE had previously introduced a pilot version of the service with a transaction cap of EGP 600. The formal launch signals the regulator’s intention to scale the solution more broadly as part of ongoing efforts to strengthen Egypt’s digital financial services infrastructure.

For Egypt’s FinTech and payments sector, the rollout reflects a continued push by the regulator to modernise acceptance infrastructure and stimulate card usage at the point of sale. By embedding payment functionality into widely available consumer devices, the central bank is positioning Soft POS technology as a cost-efficient alternative to conventional terminals, with potential implications for merchant acquisition models and competition among payment service providers in the domestic market.