Egypt EMI License — CBE Payment Service Provider Requirements 2026

Trader phone laptop stock charts — Egypt EMI Licence (CBE PSP)

Overview

Egypt Fintech Law 2022 & CBE PSP Framework

The Egyptian Parliament passed Law No. 5 of 2022 on the Regulation of Fintech — a landmark piece of legislation that consolidated the CBE's authority over payment service providers and established a comprehensive licensing framework for digital payment firms. Before this law, payments regulation in Egypt was fragmented across multiple instruments; the 2022 law created a unified, modern framework.

Under the CBE's Payment Service Provider framework, firms can be licensed to operate digital wallets, process payments for merchants (payment gateway), provide money transfer and remittance services, or offer comprehensive payment services combining multiple functions. The CBE has been actively encouraging fintech development as part of Egypt's Financial Inclusion Strategy 2022-2025, which aims to bring a larger portion of the population into the formal financial system.

Egypt's digital payments market has grown explosively. The number of e-wallet accounts surpassed 30 million by 2023, and the government's migration to digital salary payments for public sector workers is driving mass adoption. Meeza, Egypt's national payment card scheme, and the Instant Payment Network (IPN) provide the infrastructure rails on which licensed PSPs can build.

International companies entering the Egypt market must incorporate locally. The CBE does not licence branches of foreign payment firms. A joint-stock company (S.A.E.) or limited liability company must be established in Egypt, with the CBE licence application submitted by the Egyptian entity. Minimum capital of EGP 50,000,000 must be deposited before operations commence.

Requirements

Capital Requirements & CBE PSP Categories

The CBE categorises payment service providers by activity type, with capital requirements and operational scope varying accordingly. The flagship PSP licence for companies providing multiple payment services requires EGP 50,000,000 (approximately US$1.6 million at current rates).

Full PSP Licence

EGP 50,000,000

Multi-service payment operations

E-Wallet Operator

EGP 20,000,000

Consumer digital wallets

Payment Gateway

EGP 10,000,000

Merchant payment acceptance

Local Entity

Required (S.A.E. or LLC)

Branches of foreign firms not accepted

AML/CFT

AML Compliance & FIU-Egypt

Egyptian PSPs are subject to comprehensive AML/CFT obligations under Law No. 80 of 2002 (as amended by Law No. 78 of 2003) and CBE AML guidelines. The Financial Intelligence Unit (FIU-Egypt), known locally as the Money Laundering Combating Unit (MLCU), receives suspicious transaction reports from licensed PSPs.

Core AML requirements include: appointment of a dedicated AML Compliance Officer approved by the CBE; documented AML/KYC policies and procedures; customer due diligence for all clients (enhanced for PEPs and high-risk customers); electronic transaction monitoring; suspicious activity reporting to MLCU; and regular AML training for staff.

Egypt is a member of MENAFATF (the Middle East and North Africa FATF-Style Regional Body) and has been working to align its AML framework with FATF recommendations. CBE expectations around AML compliance have been increasing steadily since the 2022 Fintech Law.

Market Opportunity

Why Egypt? Largest Arab Market

Egypt is the most populous country in the Arab world and one of Africa's largest economies. Several factors make it compelling for digital payment operators. The government has made digital financial inclusion a national priority, with mandates to move 80% of government payments to digital channels.

Remittances into Egypt are among the highest in the world, exceeding US$28 billion annually — the majority arriving from Egyptian workers in Gulf countries. Licensed PSPs with remittance capabilities can access a deep, established market. Egyptian diaspora sending money home is a recurring, high-volume use case.

The e-commerce sector is growing rapidly, driven by a young, increasingly connected population. Mobile penetration exceeds 90%, and smartphone adoption is accelerating. This creates demand for seamless digital payment experiences across retail, utilities, and B2B sectors.

Key challenge: Currency controls and EGP devaluation create operational complexity for international payment firms. Firms must manage foreign exchange risk carefully and understand CBE rules on repatriation of profits.

Process

Step-by-Step CBE Licensing Process

Incorporate Egyptian Entity

Register a Joint Stock Company (S.A.E.) or LLC at the General Authority for Investment and Free Zones (GAFI). Obtain commercial registration, tax card, and relevant trade licences. Minimum required directors and shareholder structure must comply with Egyptian Companies Law.

4–8 weeks

Deposit Minimum Capital

Deposit the required capital (minimum EGP 50M for full PSP) in a licensed Egyptian bank. Obtain a capital deposit certificate. CBE requires evidence of funds before processing the application.

2–4 weeks

Prepare CBE Application

Draft comprehensive application: business plan, financial projections, technology architecture, AML/CFT programme, corporate governance framework, personal questionnaires for directors and major shareholders, and IT security assessment.

8–12 weeks

Submit to CBE Fintech Department

File complete application with the CBE's Fintech and Innovation Department. The CBE will acknowledge receipt and conduct initial completeness review before entering substantive assessment.

Month 4–5

CBE Review & Queries

The CBE will request additional documents, clarifications, and potentially an in-person presentation of the business model. Prompt, thorough responses are critical. The CBE may require technology demonstrations.

Months 5–14

Licence Issuance & Launch

Upon approval, CBE issues the PSP licence. Licence must be renewed annually. Connect to CBE's payment infrastructure (IPN, Meeza scheme) and commence regulated operations.

Month 9–18

◆ KEY METRICS

Egypt EMI License Requirements at a Glance

EGP 50,000,000

Minimum Capital Requirement

6–9 months

Average Processing Timeline

EGP 100,000

Annual License Fee

22%

Corporate Income Tax Rate

Central Bank of Egypt

Primary Regulator (CBE)

Multi-service scope

Operate across all payment types

◆ PROCESS ROADMAP

Egypt PSP Licensing Timeline (2026)

Week 1–3

Document Preparation & Legal Setup

Compile articles of association, governance frameworks, AML/CFT policies, and technical infrastructure documentation per CBE Fintech Law 2022 requirements

Week 4–5

CBE Pre-submission Consultation

Engage CBE Payments Systems Department for guidance on compliance gaps and capital structure alignment with regulatory expectations

Month 2–3

Formal Application Submission

Submit complete dossier including EGP 50M capital proof, compliance manual, risk management framework, and board credentials to CBE

Month 4–7

CBE Review & On-site Inspection

CBE conducts due diligence review, governance assessment, and on-site technical infrastructure audit; Q&A rounds may extend timeline

Month 8–9

License Issuance & Activation

Receive formal CBE license certificate; pay EGP 100,000 annual fee; activate payment processing within 30 days of issuance

FAQ

Frequently Asked Questions

The Egyptian Fintech Law (Law No. 5 of 2022) empowers the Central Bank of Egypt (CBE) to licence and supervise payment service providers, electronic payment platforms, and other fintech entities. It replaced the fragmented previous framework and established a unified CBE licensing regime for payment institutions.

The CBE issues payment licences in several categories: Payment Service Provider (PSP) for general payment processing; E-Wallet Operator for consumer digital wallets; Payment Gateway for merchant payment acceptance; and Mobile Payment Service for mobile money. Capital requirements and scope vary by category.

Yes. The CBE requires all licensed payment institutions to be incorporated in Egypt. Branch operations of foreign firms are generally not permitted for PSP activities. At least one Egyptian national or resident director is typically required.

Egyptian PSPs must comply with Law No. 80 of 2002 on Anti-Money Laundering (as amended), the CBE's AML guidelines, and report suspicious transactions to the Financial Intelligence Unit (FIU-Egypt). A dedicated AML/CFT compliance officer is required, along with documented KYC/CDD procedures.

Licensing costs typically range from EGP 500,000 to EGP 2,000,000 depending on the PSP category and scope of services, with additional regulatory fees payable to the CBE. The application and approval process generally takes 3-6 months from submission to final license issuance, though this can extend if the CBE requests additional documentation or clarifications regarding your business model or compliance framework.

Capital requirements vary by PSP category: general Payment Service Providers must maintain minimum paid-up capital of EGP 10 million, while E-Wallet Operators require EGP 5 million minimum. These amounts must be held in Egyptian banks and the CBE may impose additional capital buffers based on your transaction volumes and customer base projections.

Foreign companies can hold up to 100% ownership of an Egyptian PSP license, but the entity itself must be incorporated and registered as a joint-stock company under Egyptian law with a registered office in Egypt. At least one director or board member should maintain physical presence in Egypt, and all regulatory communications must be conducted through an Egyptian representative.

Egyptian PSPs are subject to corporate income tax at 22.5% on profits, in addition to value-added tax (VAT) at 14% on service fees charged to merchants and users. PSPs must also comply with the Unified Tax Number (UTN) registration and file quarterly tax returns with the Egyptian Tax Authority (ETA), with annual financial audits by independent auditors mandatory for CBE supervision.

All licensed PSPs must maintain segregated customer funds in dedicated settlement accounts at CBE-supervised banks, with strict accounting separation between operational funds and customer deposits. The CBE requires real-time or end-of-day settlement depending on transaction type, and banks typically impose higher compliance monitoring and KYC requirements on PSP accounts due to regulatory obligations around transaction reporting.

Egyptian PSPs must comply with CBE circular 598/2019 on information security standards, which mandates PCI-DSS Level 1 compliance for payment processing, encryption protocols (TLS 1.2 minimum), and annual penetration testing by approved security auditors. Additionally, the Egyptian Data Protection Law (Law No. 151 of 2020) requires explicit data protection impact assessments, breach notification within 72 hours, and appointment of a Data Protection Officer if processing sensitive personal data.

The CBE can impose penalties ranging from EGP 100,000 to EGP 5 million for serious violations, including unauthorized fund transfers, inadequate AML controls, or failure to submit required reports. Severe breaches can result in license suspension or revocation, criminal referral to Egyptian authorities, and restrictions on key officers from holding regulated positions—making robust compliance infrastructure and quarterly CBE audits essential for license sustainability.

Egypt has 105M+ people with digital payment adoption accelerating under the government's National Payments Council and Financial Inclusion Strategy 2022–2025. Mobile wallet usage grew over 300% between 2019 and 2023. Remittances exceed US$28B annually. The government's goal to reduce cash transactions creates significant runway for payment service providers.

Egypt EMI Licence (CBE PSP)