XPay: Navigating Egypt's Evolving Fintech Ecosystem and Capitalizing on Future Growth
Updated 4/22/2025 8:00:00 AM
Arab Finance: Egypt's fintech is growing remarkably, solidifying its position as a regional leader and a rising global contender. In 2024, Egypt had the highest representation in Forbes' "Middle East’s Fintech 50," with 13 companies featured, showcasing its dynamic innovation ecosystem. The sector is projected to grow at a compound annual rate of 37% until 2029, driven by increasing demand for digital financial services and supportive regulatory frameworks (Fintech 2025 - Egypt | Global Practice Guides | Chambers and Partners).
So, Arab Finance interviewed Dr. Mohamed Abdelmotteleb, Founder and Managing Partner of XPay. He explores how his company is contributing to Egypt’s fintech revolution by leveraging innovative strategies and fostering financial inclusion.
1-What inspired you to establish XPay, and how has the company evolved since its inception in 2018?
XPay was founded in 2018, alongside Egypt’s financial sector transformation, with a vision to reshape the country’s financial landscape through technology, making it more inclusive and accessible for all. We firmly believe that financial technology should be a fundamental right for every individual, regardless of their needs or background. With this vision, we launched XPay to offer innovative payment services to freelancers, small businesses, and large corporations, creating a unique approach tailored specifically to the Egyptian market.
The company’s mission is to empower businesses with value-added financial solutions that enable them to scale and grow. In the early stages, our focus was on understanding market needs through comprehensive research and analysis. We then experimented with different financial service models, drawing on over 20 years of experience in the sector to find the best fit for our customers. This period of testing and refinement allowed us to develop a deep understanding of the market and its demands.
In 2021, XPay achieved a major milestone by obtaining its first license from the Central Bank of Egypt, officially marking the beginning of our active operations. Since then, we have been providing services to businesses and individuals, contributing to the broader effort of digital financial inclusion. XPay also aims to bring the benefits of its smart solutions to the business community and surrounding communities, including families.
Today, XPay is recognized as one of the key players in Egypt's fintech ecosystem, continuing to innovate and expand in line with the country’s growing support toward a cashless economy and financial inclusion.
2-How does XPay differentiate itself from competitors like Fawry and other fintech players in Egypt's market?
The fintech space in Egypt has witnessed substantial growth, with many key players advancing the digital payments and financial solutions market. XPay differentiates itself by adopting a strategic "Camel" approach, which prioritizes the development of a strong and sustainable infrastructure and viable unit economics to support future technological advancements, rather than focusing solely on rapid growth. This measured strategy allows us to fundamentally transform the user experience, focusing on building lasting customer relationships and delivering added value that addresses both their direct and indirect needs. By doing so, we ensure that XPay serves our direct customers and the broader ecosystem in which they operate.
Additionally, a key element that sets XPay apart is our team and corporate culture which enhances our productivity and fosters creativity. This sense of unity extends to all those connected with the company—employees, partners, and customers alike. For example, in a fast-evolving sector like fintech, our employee retention rate of 95% is a remarkable achievement. This reflects our ability to build a unique corporate culture where our employees are partners success.
As a result of this culture, XPay has become an attractive destination for top talent in fintech, which has been evident in the growth of our team by 40% in 2024 alone. This focus on nurturing a supportive and innovative work environment allows us to continuously innovate and better serve our customers.
Moreover, the culture that unites us internally has inspired us to expand our offerings externally as well. As part of our future strategy, we plan to broaden our business model to include B2C solutions, enabling us to offer innovative financial solutions that meet the needs of individuals and families, further enhancing the inclusivity of our services.
3-XPay aims to process EGP 1 billion in payments by the end of 2025. Could you share the strategies that will help achieve this ambitious target?
XPay is aiming to achieve its EGP 1 billion payment target by implementing a strategy of controlled and sustainable growth. The company has consistently emphasized " Solid growth," ensuring that each expansion step is thoroughly researched and executed to minimize risks. This approach includes steadily expanding its merchant and client base while increasing the number of strategic partnerships to enhance the integration of digital payment solutions across Egypt.
A core element of this strategy is XPay's ongoing focus on financial inclusion. With 30% of Egyptians still excluded the formal financial system, XPay is determined to close this gap by offering innovative services and solutions that address the needs of underserved populations. The company is actively investing in its technological infrastructure to scale effectively and improve the reach of its offerings.
Through strategic partnerships and continued investment in its technology, XPay aims to broaden its footprint and accelerate the adoption of digital payment solutions across the country. These efforts, combined with a strong commitment to financial inclusion, will support XPay in achieving its ambitious goal of processing EGP 1 billion in payments by the end of 2025.
4-How does XPay manage risks associated with digital payments and maintain high transaction success rates (currently at 83%)?
XPay ensures the security and reliability of digital payments by adopting a multi-layered risk management strategy. At the core of this strategy is a strong commitment to maintaining high transaction success rates, currently at 83%. To achieve this, XPay prioritizes the protection of customer financial data and consistently works to enhance the security of its platform.
One of the key measures XPay has implemented is adherence to the rigorous standards of PCI DSS Level 1 certification, which ensures that customers' payment data is protected throughout its lifecycle, minimizing the risk of data breaches and fraud. This certification provides a robust foundation for secure transactions, giving customers confidence that their financial information is safe.
Additionally, XPay employs several other security measures to mitigate risks and maintain high transaction success rates:
- Regular Security Audits and Vulnerability Assessments
- Comprehensive Encryption
- 24/7 Intrusion Detection and Prevention
- Regular Independent Audits
- Real-Time Monitoring
By continuously investing in these security measures and maintaining high operational standards, XPay effectively manages risks and ensures a reliable, secure payment environment that supports a high transaction success rate.
5-How do you perceive the current state of fintech in Egypt, and what opportunities do you see for startups in this space?
The fintech sector in Egypt is experiencing rapid growth, driven by the rising demand for digital financial services and a supportive regulatory environment. The government’s commitment to financial inclusion, alongside the Central Bank of Egypt’s efforts to promote a cashless economy, has created a solid foundation for innovation. In fact, over 20 million people remain excluded from formal financial services, underscoring the significant need to expand access to digital financial solutions.
Hence, there is still substantial room for growth, especially as digital payment adoption accelerates. The shift toward mobile wallets and digital payment methods presents significant opportunities for fintech startups to tap into a growing market. XPay, with its diverse range of payment solutions—ranging from credit and debit cards to Apple Pay, mobile wallets, Fawry, Aman, NBE, Banque Misr installments, and Valu—ensures that customers can choose their preferred payment method, making digital payments more accessible to everyone. With a deep understanding of the local market and a focus on delivering solutions that adhere to global standards, XPay is well-positioned to lead in this space.
In conclusion, Egypt’s fintech ecosystem is poised for even further expansion. With the sector expected to grow by 37% annually until 2029, the future looks bright for fintech in Egypt.
6-Egypt’s fintech market is expected to grow at a compound annual rate of 37% until 2029. How is XPay positioning itself to capture this growth?
To capitalize on Egypt’s projected growth, XPay is committed to offering locally tailored solutions that adhere to the latest global industry standards. This commitment is reflected in our focus on providing secure, easily integrated digital payment solutions, with our PCI DSS Level 1 certification serving as a testament to our dedication to customer safety and trust.
In addition, our diverse range of payment options—including Apple Pay, Fawry, Aman, and Valu—combined with strong regulatory backing from Bank Misr and the National Bank of Egypt, and our strategic partnership with entities like Crédit Agricole, positions us at the forefront of Egypt's rapidly growing market.
By offering seamless digital payment solutions and focusing on empowering both enterprises and freelancers, XPay equips its clients with the tools they need to achieve their business goals. Combining locally tailored services with global standards and strategic partnerships, XPay is positioned to lead and capitalize on the expected growth of the market
7- Can you shed light on the financial performance of XPay in 2024, and what are your projections for 2025?
In 2024, XPay achieved significant financial growth, highlighted by a 75% increase in our merchant base, a 230% rise in total payment volume (TPV), a 93% surge in transaction volume, and a 50% expansion in our end-user base. Notably, the company maintained a robust transaction success rate of 83%.
Looking ahead to 2025, XPay is setting an ambitious target to process EGP 1 billion in payment volume by year-end. We are also focusing on expanding our presence in the Egyptian market, backed by an investment of EGP 60-70 million. This investment will be channeled into strengthening our infrastructure, enhancing our team capabilities, and further growing our merchant network.
Additionally, we are actively pursuing strategic partnerships with key players in the Egyptian market. A notable example is our recent collaboration with Huawei Cloud Services, which showcases our commitment to providing seamless, secure, and innovative digital payment solutions to enterprises and freelancers alike. Hence, we believe these efforts will drive continued success and help us achieve our ambitious goals.
8-How has Egypt's ICT 2030 Strategy influenced the growth of digital payments and financial technology solutions like XPay?
Egypt's ICT 2030 Strategy has had a significant impact on the growth of digital payments and fintech solutions, including XPay. The strategy, which aims to modernize Egypt's digital infrastructure and foster a knowledge-based economy, has created a favorable environment for the expansion of fintech and digital payment solutions. By prioritizing digital infrastructure development, it has paved the way for companies like XPay to thrive in a rapidly evolving landscape.
The ICT 2030 Strategy's focus on financial inclusion and a cashless economy aligns with XPay’s commitment to promoting financial inclusion as a fundamental right for all individuals. This strategy has accelerated the adoption of digital financial services, creating significant opportunities for fintech companies. Additionally, regulatory reforms, startup support, and initiatives by the Central Bank of Egypt have fostered a conducive environment for digital payments, building trust and encouraging widespread adoption of fintech solutions.
With its ability to combine local insights with global standards, XPay is positioned to capitalize on the opportunities presented by the ICT 2030 Strategy. By offering diverse payment solutions, XPay is actively contributing to Egypt’s digital transformation and helping integrate more people into the formal financial system.
In conclusion, Egypt's ICT 2030 Strategy has been crucial in shaping the country's fintech ecosystem. Its emphasis on digital infrastructure, financial inclusion, and regulatory support has provided a solid foundation for companies like XPay to innovate, grow, and drive the shift toward a more inclusive and cashless economy.
9-As a former leader at Nile University’s Technology Center, how do you see the intersection of education and fintech innovation in Egypt?
I believe that my previous leading role at Nile University’s Technology Center, specializing in nanotechnology, has played a pivotal role in shaping my ability to navigate challenges in my current position at XPay. The complexities of nanotechnology, in particular, helped me think beyond conventional academic methods.
Currently, I am encouraged by the increasing digital access among youth and emerging generations, which is playing a key role in democratizing education. This shift enables individuals to acquire essential skills for the digital age, whether through traditional academic frameworks or innovative digital platforms.
A prime example of this transformation is my own journey—from working in nanotechnology to transitioning into fintech. Similarly, many members of our team have honed their skills through online platforms, complementing formal education with practical, real-world learning.
In conclusion, I firmly believe that both traditional and digital education are crucial in cultivating an innovative fintech ecosystem. Each approach has its unique strengths and, when combined, they can help nurture the talent needed to drive the future of fintech in Egypt and beyond.
10- Can you share your thoughts on how initiatives like tablet-based education or platforms like the Egyptian Knowledge Bank could complement fintech advancements?
As previously mentioned, we believe that diverse educational mediums play a pivotal role in driving innovation within the fintech sector. The Egyptian government’s ongoing efforts to integrate digital solutions into the national curriculum, particularly through tablet-based education, are providing emerging generations with essential access to the digital world. This shift facilitates the transfer of knowledge and fosters advancements across various sectors, including fintech.
These initiatives align seamlessly with XPay’s mission. We are committed to empowering freelancers, small businesses, and enterprises with innovative, secure, and seamless digital solutions. By complementing digital education with fintech advancements, we can ensure that Egypt’s workforce is equipped with the skills and tools necessary to thrive in the digital economy.
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