Latest Payments News: Egypt Launches New Instant Payouts Service For Incoming Remittances, and more

Catch up on a selection of the stories our payments compliance analysts have covered lately, and stay up-to-date on the latest news.

Egypt Launches New Instant Payouts Service For Incoming Remittances

The Central Bank of Egypt (CBE) has announced the launch of a new banking feature, which will allow customers to receive remittances in real time via the country’s instant payment network (IPN).

Last week, the CBE said it has granted approval to several commercial banks to begin offering the new feature to customers.

The move will allow banks to credit remittance payments to customer accounts instantly via the IPN — a real-time payment system that settles transactions 24/7.

The CBE said the move aligns with its efforts to enhance the country’s payments infrastructure, promote digital transformation and contribute towards a “less-cash” society.

“This new feature represents a significant milestone in the evolution of the instant payment network, which is anticipated to bolster customers’ reliance on digital financial services in their daily transactions,” it said.

Egypt is a major market for remittances, consistently ranking among the top ten countries receiving the highest volume of remittances.

In 2023, according to the World Bank, Egypt was the ninth largest recipient of remittances worldwide, receiving $20bn in total, mainly from migrant workers in Saudi Arabia, the UAE, Kuwait and the US.

The IPN, which launched in March 2022, has seen rapid adoption, helped by platforms such as the InstaPay app.

Developed by the Egyptian Banks Company, the technology arm of the CBE, the launch of the app coincided with the launch of the IPN.

It now has more than 11.5m registered users and is expected to hit EGP2.7trn ($53bn) in transaction volume by the end of 2024.

International Operation Catches Scammers

An international operation supported by EU agencies Europol and Eurojust has dismantled a "phone phishing" gang operating across Belgium and the Netherlands, resulting in the arrest of eight suspects.

The coordinated action, conducted by Belgian and Dutch authorities, included 17 searches and the seizure of electronic devices, luxury items, cash and a firearm.

The gang is accused of running large-scale phishing campaigns, using phone and online scams to steal financial data across at least ten European countries.

They also impersonated police or banking staff, targeting older victims at their homes. After defrauding victims, the suspects used the stolen money to purchase luxury watches, jewellery and designer clothes, frequently flaunting their wealth at upscale clubs.

Authorities estimate the gang caused millions of euros in economic damages, with the main perpetrators primarily operating from the Netherlands and most of the criminal activities occurring in Belgium.

South Korea Opens Applications For Innovative Financial Services Designation

The Financial Services Commission (FSC) of South Korea has opened the application period for its Innovative Financial Services designation.

From December 9 to December 31, 2024, companies are able to submit applications to gain recognition as an innovative financial service provider, granting them regulatory exemptions in areas such as authorisation, governance and business activities.

Applicants can access the application process and necessary documentation on the Financial Regulatory Sandbox website. To assist companies facing challenges with the application process, consulting support is being made available via the Korea Fintech Support Center.

The FSC, in collaboration with the Innovative Financial Services Review Committee, will review submissions within a statutory 120-day period, and successful applicants will subsequently receive designation, enabling them to test and develop innovative services in a regulatory sandbox environment.

For firms unable to meet the December deadline, the regulator has confirmed that the next application window is scheduled from March 17 to March 28, 2025.

‍

Want to know more?

‍Request a demo with one of our experts today to gain full access to the stories we cover - and much more - and start learning how you can make compliance a competitive advantage for your organisation.