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Fawry to establish new consumer finance company in 2022

The company, wholly owned by Fawry and its subsidiaries, has already obtained the necessary license from the Financial Regulatory Authority

By: Business Today Egypt

Thu, Dec. 23, 2021

Egyptian FinTech Fawry for Banking Technology and Electronic Payments has announced it will be launching a consumer finance company, Fawry Consumer Finance to expand its current offerings.

With an initial capital of EGP 10 million, Fawry Consumer Finance is expected to launch in 2022 and will provide consumers with easier access to credit through multiple venues, including Buy Now Pay Later (BNPL).

The company, wholly owned by Fawry and its subsidiaries, has already obtained the necessary license from the Financial Regulatory Authority, according to a statement released today.

Related > Fawry to purchase Banque Misr and CIB’s combined 30% stakes in Fawry Plus

Through the new company, Fawry will expand its current financial solutions offerings, which are presently provided through partner banks and financial service entities, and targeted consumer categories, according to the statement.

"In the last couple of years we’ve seen huge growth of buy-now-pay-later transactions. We also believe that providing value-added services at checkout for the merchant will be key to growing our acceptance business and deepen the utilization of our POS network," explained Abdel Meguid Afifi, Fawry’s CFO.

He added that “the offering combines the two, allowing Fawry to meet real needs of consumers to gain access to credit and empowering merchants to offer their customers multiple options to pay on their own terms."

Launching Fawry Consumer Finance, which will be fully owned by Fawry and its subsidiaries, is in line with the government vision and the Financial Regulatory Authority's (FRA) strategy to promote financial inclusion and digital transformation.

Related > CBE releases new rules and regulations for instant payment network

Fawry’s consolidated financial statement establish an increase of 33.4% in profits, reaching EGP 193.7 million, during the first 9 months of the year.

Fawry was the 2nd most influential local brand in Egypt according to Multinational market research company Ipsos’ “Most Influential Brands in Egypt” report.