OPay is expanding in Egypt: Nigeria-based fintech player OPay is preparing to expand its footprint in Egypt, launching pre-paid cards and linking up with the central bank’s new digital payment app less than a year after it first entered the country. The company has partnered with Masria Digital Payments (MDP) on its new pre-paid cards, which are pending approval from the Central Bank of Egypt (CBE), the company’s director of business development and partnership for Egypt and North Africa, Mahmoud Khedr, told Enterprise, confirming a report from Al Mal. It expects to issue some 200k cards in the first phase of its rollout, he said.

OPay plans to join the CBE’s new digital payment app + get a new PayFac license: The fintech outfit will soon apply to join the CBE’s new national digital payment app, InstaPay, Khedr said, explaining that the instant payment network is a “fundamental turning point for the payments landscape in Egypt.” OPay is also in talks with an unnamed local bank for a new payment facilitator license (which would allow it to receive and process payments on behalf of banks, making it easier for businesses to accept electronic payments), he added. Opay has already obtained licenses to receive and process credit payments for Banque Misr and the National Bank of Egypt.

SOUND SMART- Payment facilitators say they offer businesses an easier route to accepting card payments by including them under a “master merchant account” — saving them the time and effort of having to get approvals for an individual account. Payfacs help get merchants ready to process payments in hours — as opposed to days or weeks for the traditional route, which goes through banks directly. Payfacs say this spares their clients from dealing with harder-to-navigate bank bureaucracies.

“New service” to launch in 3Q2022: The company is gearing up to launch a new service in Egypt in 3Q, which would be a “first for the MENA region,” Khedr said, without disclosing what the service will be. This will come as part of its wider expansion in Egypt, which will include opening more branches and using the country as a “center” for its service operations in the MENA region.

About OPay: The Nigerian firm became Africa’s second fintech unicorn last year after raising USD 400 mn in a SoftBank-led funding round that valued it at USD 2 bn. The company opened its first brick and mortar shop in Egypt in March, after launching operations in the country in 2021. OPay currently has tens of thousands of points of sale (POS) across the country, processing mns of transactions per month, Khedr told us. It’s now expecting 300% growth this year.

More African fintechs following OPay here? Churpy, a Kenyan account receivables automation startup, and ImaliPay, a financial services firm aimed at gig workers, have both said recently they are preparing to enter Egypt.

Our fintech industry has been getting a lot of interest lately: A stream of local fintech startups have secured new investment this year, including Khazna, which raised USD 38 mn in a series A round, and Lucky, which received USD 25 mn in its series A. Other fintechs closing investment rounds in 2022 include MoneyHash, PayMint and FlapKap.

For thoughts on What’s Next in the fintech space, check out our latest podcast, which dropped on Sunday and features Khazna and Kashat alongside VCs Accion and Cairo Angels — with a special appearance by the Central Bank of Egypt. Listen here on Apple Podcasts (or use the player at the foot of our website here) or read a summary here instead.

OTHER FINTECH NEWS- Visa will provide digital payment services for Orange Cash users after signing an agreement with the telecoms company, the two companies announced in a joint press release (pdf).