Damen CEO Says Egypt”s Cash Economy Leaves Significant Room for Digital Payments Growth
Egypt's digital payments industry still has considerable room for expansion despite years of rapid growth, according to Sameh El Mallah, Chief Executive Officer of Damen for Electronic Payments, who believes the country's continued reliance on cash presents one of the largest opportunities for fintech companies.
Speaking during a televised interview, El Mallah said accelerating the shift toward digital payments is about more than improving convenience for consumers. He argued that wider adoption of electronic transactions can strengthen the economy by increasing the speed of money circulation while reducing the costs and risks associated with handling cash.
"The Egyptian market remains rich with opportunities," El Mallah said, noting that a large share of daily transactions is still conducted in cash, leaving significant potential for fintech providers to expand financial inclusion and support the country's digital transformation agenda.
Innovation Speed Defines Competition
El Mallah said competition in Egypt's fintech sector has evolved beyond simply offering more services. Instead, success increasingly depends on how quickly companies can transform ideas into products that reach customers.
He described speed-to-market as a decisive competitive factor, adding that Egypt continues to offer ample opportunities for companies capable of developing digital services that address evolving customer needs.
Artificial intelligence has become a key enabler of that process. According to El Mallah, software projects that previously required nearly four months to develop can now be completed in as little as three days, dramatically accelerating product launches.
He emphasized that AI is not replacing software engineers but enabling them to become more productive by improving software quality, accelerating development cycles and identifying security vulnerabilities at earlier stages.
Expanding Services Beyond Traditional Payments
Damen has steadily broadened its portfolio beyond bill payments to offer a wide range of digital financial services through its nationwide network.
Among the company's key offerings are postal money order disbursement services, allowing citizens to receive transfers through Damen outlets without visiting post offices. The company also works with the Ministry of Supply to provide services related to Egypt's subsidized bread system, including bakery settlements and penalty payments.
The platform additionally enables customers to recharge smart electricity, water and gas meters directly from NFC-enabled smartphones without the need to visit physical payment centers.
More recently, Damen expanded its services to include the disbursement of government salaries, pensions and Takaful and Karama social assistance payments through its merchant network, making public financial services more accessible across the country.
The company has also introduced a digital donation platform that allows beneficiaries to redeem assistance at participating retailers using electronic codes, helping preserve privacy while giving recipients greater flexibility in selecting essential goods.
Nationwide Reach Supports Financial Inclusion
El Mallah highlighted Damen's extensive presence across Egypt, particularly in border governorates and underserved communities where access to financial services remains limited.
He said the company continues to expand its network even in low-density areas as part of broader efforts to support financial inclusion and ensure digital financial services are available to all citizens.
He also noted that the rapid growth of electronic wallets and instant payment platforms such as InstaPay has significantly simplified money transfers and accelerated the adoption of digital payments across the country.
Cybersecurity and Talent Development
With digital transactions increasing, El Mallah stressed that cybersecurity remains a strategic priority for the company.
He said Damen operates within a secure technology environment supported by encrypted communication networks isolated from the public internet, while complying with cybersecurity and data protection requirements established by the Central Bank of Egypt and the Financial Regulatory Authority.
The executive also highlighted the importance of investing in local talent, noting that Egypt has a strong pool of young software developers. Damen continues to recruit and train new graduates, believing that continuous skills development remains essential to sustaining innovation across the fintech industry.
He praised national initiatives led by the Ministry of Communications and Information Technology—including Digital Egypt, Digital Pioneers, Digital Cubs, and Digital Juniors—for helping prepare the next generation of digital professionals.
Digital Identity to Unlock the Next Phase
Looking ahead, El Mallah identified Egypt's planned digital identity initiative as one of the most significant developments for the financial technology sector.
He said the project is expected to enable citizens to complete a wider range of financial services remotely without visiting physical branches, making digital services more accessible while further advancing financial inclusion.
Damen currently serves more than 10 million customers and processes approximately one million transactions every day, reflecting what El Mallah described as growing public confidence in digital payment solutions and their role in Egypt's evolving digital economy.