Just three years after its heralded launch, Egypt’s flagship instant payment application, InstaPay, is facing a wave of public discontent. The culprit? A recent decision by the Central Bank of Egypt (CBE) to introduce transaction fees for the service that has rapidly become a cornerstone of the country’s growing digital economy. Starting April 1st, users will incur charges ranging from 50 piastres (less than a U.S. cent) to EGP 20 (approximately 40 U.S. cents) per transfer, alongside a limit of ten free monthly balance inquiries. This sudden shift from a free service has ignited a firestorm of criticism, with many Egyptians viewing it as a premature and counterproductive move that threatens to derail the nation’s progress towards a cashless society.
InstaPay, launched in April 2022 by the Egyptian Banks Company (EBC), the technological arm of the Central Bank of Egypt (CBE), quickly gained traction, amassing a user base of 12 million by the end of 2024. InstaPay functions as a user-friendly mobile application that enables instant money transfers between various bank accounts and mobile wallets directly from a smartphone. By linking their existing financial accounts to the app, individuals can seamlessly send and receive funds to other InstaPay users, often identified by their phone numbers, in near real-time. This ease of use and speed has made it a popular tool for everyday transactions and peer-to-peer payments in Egypt, offering a digital alternative to cash and traditional banking methods.
The CBE and InstaPay argue that the newly implemented fees are essential for improving service quality and ensuring the long-term sustainability of the platform, citing the need to maintain a high level of operational efficiency. They also point to the significant expansion of the app and the necessity to invest in its continued development and security.
However, this rationale has done little to quell the growing anger among users and financial experts alike. Ahmed Safwat, a Credit Risk Team Leader at Abu Dhabi Islamic Bank Egypt, voices a widely held concern. “Globally, the shift from a cash-based system to financial inclusion takes 7–10 years on average, yet these charges are being introduced just three years after InstaPay’s launch — far below the necessary adaptation period,” he argues. “At a time when digital payments should be encouraged, adding fees creates resistance among users who may revert to cash transactions, contradicting the very purpose of financial inclusion.”
Safwat’s perspective aligns with global experiences. Countries like Sweden, India, and China, all cited as examples in the debate, took significantly longer to reach a mature stage of digital payment adoption before introducing widespread transaction fees. “Sweden, a frontrunner in the cashless movement, took 10–15 years to see substantial behavioral change. India, with its ambitious digital payment initiatives, required 7–10 years. Even China, which witnessed a rapid digital transformation, allowed 5–10 years for user adoption to solidify,” Safwat says.
Critics argue that Egypt is still in the nascent stages of this transition. Unlike countries where cash usage was already declining, Egypt needs more incentives, not financial barriers, to encourage widespread adoption of digital payments. “The CBE, as a non-profit entity with a mandate to control inflation, support financial inclusion, and enhance investment culture, should prioritize these goals over generating revenue from what many consider an essential financial service,” he adds. Imposing fees at this juncture risks discouraging usage, pushing people back towards cash-based transactions and undermining the very foundation of financial inclusion that InstaPay has helped to build.
The imposed fee structure, while seemingly small, could have a significant psychological impact on users, particularly those who rely on InstaPay for frequent, low-value transfers. The 0.1% fee per transaction, with a minimum of 50 piastres and a maximum of EGP 20, might appear negligible for larger transfers but can quickly add up for individuals making multiple small payments daily. The limitation on free balance inquiries to just ten per month, with a subsequent charge of 50 piastres per inquiry, is also seen as an inconvenience and an unnecessary cost for users who regularly monitor their finances.
InstaPay, in its official statements, has affirmed its commitment to providing competitive digital financial solutions and has promised transparency in clarifying the fees before each transaction. It has also established multiple support channels to address customer inquiries. However, these assurances have so far failed to fully assuage the concerns of a public that has grown accustomed to the convenience and cost-effectiveness of the free service.
As April 1st approaches, the furor over InstaPay ’s new fees shows no signs of abating. The decision has not only sparked public outcry but has also ignited a national conversation about the optimal path towards a cashless future. Whether the fees will indeed improve service quality and ensure sustainability, or inadvertently stifle digital adoption and push Egyptians back towards the familiar comfort of cash, remains to be seen. For now, Egypt’s digital payment drive appears to have hit a significant speed bump, raising questions about the timing and wisdom of this pivotal policy shift.