Arab Finance: Egypt's journey towards financial inclusion is marked by significant strides in embracing digital transformation and fostering a robust e-payments ecosystem. This drive for financial inclusion gets a boost from e-payment companies like Basata Holding.

In this exclusive interview with Arab Finance, Karim Shehata, CEO of Basata Holding, discusses the company’s strategic partnerships, unique products and services, expansion plans, and Basata’s alignment with the goals of Egypt Vision 2030.

1-Can you explain the rationale behind the formation of Basata Holding as a joint venture between MM Group for Industry and International Trade (MTI), B Investments, and BPE Partners?

The strategic objective of this partnership is to unify efforts by establishing an entity with a solid approach to revolutionizing the e-payments sector. It aims to provide smart digital payment solutions and services and enhance financial inclusion in line with Egypt's efforts to achieve digital transformation by 2030.

By consolidating its presence in the e-payment sector, Basata is set to enhance the accessibility and efficiency of digital financial services, bridging the gap between traditional banking systems and the digital economy.

This was a significant impetus for unifying efforts to create a strong e-payments entity in Egypt and the region, supported by strategic shareholders and investors in the Egyptian market, including Vodafone Egypt.

Basata is considered an e-payment gateway established to provide a convenient platform in the e-payment and financial services sectors and deliver integrated financial solutions.

2-How does Basata leverage MTI's distribution network and BPE's financial expertise to reshape the non-banking financial services sector in Egypt?

Basata strives to foster partnerships and cooperation across various sectors, aiming to increase market share and geographic expansion.

These partnerships will contribute to supporting business growth and reaching more customers, along with providing a diverse range of new technology-supported services that enhance digital transformation and financial inclusion.

Over the years, MTI and BPE have established a strong presence in the financial sector, contributing significantly to the Egyptian financial sector; thereby, Basata intends to capitalize on their expertise.

3- What are Basata’s main strategic priorities across its various subsidiaries?

Basata is committed to developing the e-payments sector while delivering added value that contributes to providing a seamless modern experience for all users.

Through its subsidiaries, Basata offers over 3,200 different services via an extensive and distinguished network comprising over 160,000 points of sale (POS).

Basata managed to reach more than 40 million users and activate e-wallets within a significantly short span of time, facilitating daily transactions for individuals.

These unified e-payment services include utility bill payments, education and insurance payments, and the Buy Now, Pay Later (BNPL) installment payment services.

Additionally, Basata intends to expand its network across Egypt and beyond, in addition to introducing a number of additional services, as part of its efforts to ultimately achieve financial inclusion and advance the e-payments sector.

4- Can you provide an overview of Basata and its products and services?

Basata is a leading e-payment services company in Egypt, offering a wide range of services aimed at revolutionizing the financial payments sector and enhancing its strategic plan to expand its customer base and achieve financial inclusion.

These services encompass the latest payment methods, including self-service e-payment machines in public places. These services enable seamless and secure cash deposits and withdrawals from e-wallets, bill payments, and money transfers, as well as diverse payment options and accommodating customers using credit and debit cards.

Basata will soon introduce its BNPL services at POS, offering various payment options for customers.

Additionally, the company plans to roll out prepaid cards, in addition to payroll services for employees at various companies and entities and the sale of railway tickets.

Basata achieved remarkable results by expanding its scope of services offered to customers and merchants to more than 3,200, including utility bill payments, government financial services, education, telecommunications, and insurance payments, among others.

Operating across all Egyptian governorates, Basata boasts a network spanning over 160,000 POS that has facilitated transactions worth EGP 75 billion. The company expanded its vast network with the inauguration of 20 new branches across Egypt’s 27 governorates.

5- How does Basata Holding integrate environmental, social, and governance (ESG) principles into its business decisions and operations?

Basata Holding places significant emphasis on integrating environmental, social, and governance (ESG) principles into its business decisions and operations.

This commitment involves strict adherence to a structured set of regulations governing internal organizational processes and external partnerships, empowering employees, and providing them with essential technological tools to enhance our sustainability initiatives.

The digital payments sector positively and efficiently contributes to limiting the use of traditional means in payments, including reducing the use of paper in operations. With the growing use of our digital services and customers, we are reducing our environmental impact.

6-How does Basata Holding plan to stay competitive in the evolving financial investment industry in Egypt?

Basata’s strategy is based on several pillars that operate on several fronts, with a distinct focus on implementing the latest digital payment technologies. This approach is designed to provide a smooth and secure experience for all customers, meeting their demands and needs.

The company is also keen on providing its various services and leveraging all capabilities in collaboration with partners.

Notably, our partnership with Vodafone Egypt stands out as a cornerstone, underscoring our significant and impactful commitment to our key partners.

This collaboration with Vodafone Egypt marks a pivotal milestone in Basata's journey. Looking ahead, we look forward to exploring more avenues of collaboration with Vodafone Egypt as our key partner to propel technological development and bolster Egypt’s financial inclusion.

This move comes in line with the state’s efforts towards digital transformation.

7- What is the importance of having Vodafone Egypt as a partner of Basata?

Our partnership with Vodafone instills the company’s confidence in Basata. It ensures our commitment to exploring areas of cooperation in the information and communication technology (ICT) sector and supporting Egypt’s efforts towards achieving a financial inclusion strategy.

Under the partnership, Vodafone Egypt’s stake will increase in Basata. We jointly aim to open avenues of cooperation to achieve comprehensive digital transformation in the e-payment sector, in line with Egypt's strategy towards achieving financial inclusion.

Capitalizing on Vodafone Egypt's widespread outlets to promote the concept of financial inclusion, this collaboration will further boost Basata’s growth and expansion plans by launching a range of distinctive services this year.

8-What are your expectations for Basata’s future growth and profitability in 2024?

Reports published by the Central Bank of Egypt (CBE) in January 2024 showed that the number of Egyptian citizens, aged 16 years old and above, who can access and use financial services as part of financial inclusion efforts has reached 42.3 million out of 65.4 million citizens. These data signal a cumulative increase of 147% during the period from 2016 to 2022.

The CBE has attributed this surge to the growing portfolio of e-wallets and pre-paid cards.

Furthermore, studies have suggested that the volume of digital payments in Egypt is anticipated to make up 14.3% of total transactions, reaching $21.7 billion by 2027. This projection reflects an upward trend in consumers embracing cashless transactions.

In tandem with global and local trends, e-payments, as part of the financial technology sector, are growing tremendously towards financial inclusion through technological means and the integration of more segments into the technology sector.

At Basata, we firmly believe that robust opportunities exist to foster further growth and expand our presence within the e-payments sector in the coming years.

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