The Egyptian subsidiary of the Emirates Telecommunications Corporation (Etisalat), a United Arab Emirates-based telecommunications services provider, recently formed two partnerships with the National Bank of Egypt (NBE), a commercial bank wholly owned by the Egyptian government, and MasterCard, a US-based payment solutions company, to launch a mobile commerce service known as “Flous,” meaning “money” in Arabic. According to Saeed Al Hamli, the Chief Executive Officer of Etisalat Egypt, “the launch of mobile money services in Egypt for the first time will enable Etisalat to begin a new phase” of increasing the financial inclusion of the Egyptian people. The service, which can be deployed on any mobile phone, is being rolled out in two phases. The first phase will allow subscribers not only to transfer money to anyone participating in Flous, but also load cash onto and withdraw cash from their Flous accounts at approximately 100 of Etisalat’s outlets and 405 of NBE’s branches across Egypt. The second phase will allow subscribers to pay their bills as well as purchase various e-commerce and traditional goods and services in Egypt through their mobile phones. Subscribers can use MasterCard as a payment option for transactions on their mobile phones. MasterCard, which has 1.2 billion payment cards in circulation worldwide, has initiated similar mobile banking efforts in 30 other programs around the world [1, 2].
As of July 2013, Etisalat reported net revenues of AED 32.9 billion (USD 9 billion), net profit of AED 13.2 billion (USD 3.6 billion) and operations in 15 countries throughout the Middle East, Africa and Asia. As of June 2010, NBE reported total assets of EGP 299 billion (USD 52.1 billion) and total deposits of EGP 245 billion (USD 42.7 billion). As of July 2013, MasterCard reported total assets of USD 12.5 billion.
By Michael Averell, Research Associate
About Emirates Telecommunications Corporation (Etisalat)
Founded in 1976, the Emirates Telecommunications Corporation, which uses the trade name Etisalat, is a United Arab Emirates-based telecommunications services provider. After an ownership change in 1983, the United Arab Emirates government holds a 60 percent share of the company, leaving the remaining 40 percent to be publicly traded. As of July 2013, Etisalat reported net revenues of AED 32.9 billion (USD 9 billion), net profit of AED 13.2 billion (USD 3.6 billion) and operations in 15 countries throughout the Middle East, Africa and Asia. Information on the number of subscribers is unavailable.
About National Bank of Egypt (NBE)
Founded in 1898, the National Bank of Egypt (NBE) is a commercial bank wholly owned by the Egyptian government. As of June 2010, NBE reported total assets of EGP 299 billion (USD 52.1 billion), total deposits of EGP 245 billion (USD 42.7 billion) and operations in 405 branches across Egypt.
About MasterCard
MasterCard is a global payments and technology company that is headquartered in New York, USA. It connects consumers, financial institutions, merchants, governments and businesses in approximately 210 countries and territories. As of July 2013, MasterCard reports total assets of USD 12.5 billion and 1.2 billion payment cards in circulation worldwide.
Sources and Additional Resources
[1] AMEinfo: “Etisalat launches mobile money services in Egypt,” http://www.ameinfo.com/etisalat-launches-mobile-money-services-egypt-346534
[2] MasterCard Press Release: “MasterCard and EBC introduce Egypt’s Mobile Payment Gateway,” http://newsroom.mastercard.com/press-releases/mastercard-and-ebc-introduce-egypts-mobile-payment-gateway/
MicroCapital story, June 12, 2013, “MICROCAPITAL BRIEF: MasterCard Introduces “SME Online” Internet Payment Solution in Nigeria,” https://www.microcapital.org/microcapital-brief-mastercard-introduces-sme-online-internet-payment-solution-in-nigeria/
MicroCapital story, October 5, 2012, “MICROCAPITAL BRIEF: Etisalat Rolls Out Mobile Money Service in Nigeria,” https://www.microcapital.org/microcapital-brief-etisalat-rolls-out-mobile-money-service-in-nigeria/
MicroCapital story, February 27, 2012, “MICROCAPITAL BRIEF: FirstBank of Nigeria, Airtel Nigeria, GLO Nigeria, Etisalat Nigeria to Partner on Mobile Money,” https://www.microcapital.org/microcapital-brief-firstbank-of-nigeria-airtel-nigeria-glo-nigeria-etisalat-nigeria-to-partner-on-mobile-money/
MicroCapital story, June 27, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Considering $100m in Loans for National Bank of Egypt for Micro-, Small, Medium-Sized Enterprises; Trade Finance,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-considering-100m-in-loans-for-national-bank-of-egypt-for-micro-small-medium-sized-enterprises-trade-finance/
MicroCapital Universe Profile: Emirates Telecommunications Corporation (Etisalat) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Emirates+Telecommunications+Corporation
MicroCapital Universe Profile: National Bank of Egypt (NBE) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Bank+of+Egypt
MicroCapital Universe Profile: MasterCard https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MasterCard
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