Leading European mobile wallet provider Cellum today signed a Memorandum of Understanding with Metel Egypt, a member of Metel Group of Companies.
The agreement was signed at a joint business forum attended by Egyptian President Abd El-Fattah El-Sisi and Hungarian Prime Minister Viktor Orbán. Under the terms of the deal, Metel Egypt will be Cellum’s partner and gateway to implementing its mobile payment solutions in Egypt, the Middle East and Africa, thereby aiding the development of e-commerce in the region.
Following its ongoing expansion in Asia, Cellum is now entering a new region, taking part in developing the cashless economy in the Middle East and North Africa, starting with Egypt. Access to traditional banking services is quite limited in the region, with less than 10% of Egypt’s population having a bank account.
Although e-commerce is enjoying dynamic growth in Egypt, 80% of such purchases are still paid for with cash on delivery. On the other hand, almost everyone in the country has a mobile phone, two thirds of which are smartphones. In the interest of fostering financial inclusion and economic growth, the government of Egypt has embraced the transition to cashless, which is also supported by other institutions. Founded in 2008, Metel Group is also focused on the economic development of the country, aiming to bridge the gap in financial culture between the West and the MENA region.
“The world is moving towards a cashless future, that is no question. We have high hopes and we believe the introduction of Cellum’s secure mobile wallet services will have a profound effect on the local market and foster positive change,” said President and CEO of Metel Group Ahmed Mekky.
Cellum’s mobile wallet services have been growing in popularity in Southeast Asia, but this deal marks the first time the company enters the Middle East to take part in the formation of a new breed of cashless economies.
“The Middle East and Africa region is of great importance to us, as the market is expected to double by 2020, from USD 7 billion in 2014. The largest markets here are Saudi Arabia, the United Arab Emirates and Egypt, and we want these countries to start their exciting journey towards a cashless economy with the help of Cellum’s services,” said Cellum COO Ábel Garamhegyi.