Telda, the Egyptian fintech startup formed by Ahmed Sabbah, a former co-founder of SWVL, was the first in Egypt to get a license from the Central Bank of Egypt under the new Banking Agents regulations, but it has reason to be concerned. This is because another fintech startup Dopay, which is backed by renowned investors such as FMO, Techstars Ventures, Ace & Company, Force over Mass, and NN Group, has received Egypt’s second banking agent license through the Arab Banking Corporation Egypt (Bank ABC Egypt).
“I am delighted that, after rigorous scrutiny, the Central Bank of Egypt has recognized the security and efficiency of our platform and product. Obtaining this license is a significant landmark on our journey to becoming a leading virtual banking platform in Egypt. I am very proud of dopay’s team of innovators who have taken us successfully to this milestone and I am also appreciative of the support of Bank ABC Egypt,” Frans van Eersel, Founder and CEO at Dopay, said.
“Being granted this licence will [also] give our existing and prospective customers even more confidence in our ability to deliver the fast, convenient and secure cashless payment services they need to help grow their businesses, benefit their employees, and fulfil their ambitions. It is also a vital next step to making our platform the foundation for delivery of many more new services to come.”
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Here Is What You Need To Know
- Dopay will be able to offer a digital banking platform as a result of the new permit, which will allow organizations and businesses to easily register accounts for their employees and other beneficiaries while also being able to pay them in real-time (in accordance with the requirements provided by the Central Bank of Egypt).
- Under a partnership agreement, dopay and Bank ABC Egypt are working together to develop and offer a novel value proposition for SMEs, corporations, and their financially underprivileged employees (and various other beneficiaries based in Egypt).
- The cooperation and platform should help lay the groundwork for Egyptian firms and their workers in emerging areas to grow their payment and banking services.
Jaap Reinking, Director Private Equity of the Dutch entrepreneurial development bank FMO, added:
“Accessible and affordable payment platforms, like dopay’s in Egypt, increasingly drive financial inclusion, and thereby effective pursuit of many of the United Nations’ sustainable development goals.”
A Look At What Dopay Does
Companies of any size can use the Dopay platform to create and manage personal accounts for their employees and contractors in “seconds.” Staff may be paid immediately, even on weekends and holidays.
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Each account comes with a prepaid debit card that “allows for 24-hour access to funds.” Enrolled firms can use a secure, cashless payroll system with easy-to-use interfaces and full auditability.
Users of personal accounts “enjoy instant, secure access to mainstream banking facilities, regardless of their income,” according to the Fintech firm, which also noted that dopay has grown from a proof of concept to “a fully licensed next generation virtual banking platform in Egypt, with hundreds of active customers ranging from small local businesses to global enterprises” in just five years.
The firm “pursues a program of concentrated growth in the MENA area, continuing to actively develop financial inclusion as a functioning reality for many thousands of users” through offices in London, Cairo, and Abu Dhabi.
Egypt is Dopay’s first operating market, with 2.4 million local enterprises and 104 million residents.
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Around two-thirds of Egyptians, or 67 percent, do not have access to a bank account, and nearly all do not have access to credit.
Dopay banking license Dopay banking license
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer