dLocal, a Uruguay-born payment processing platform, is making significant strides in Egypt’s rapidly growing digital commerce market. Despite the country’s cultural preference for cash, with 57% of transactions still conducted physically, dLocal has successfully adapted its strategy by integrating local payment methods like mobile wallets and bank transfers.
Sherif Radi, dLocal’s Egypt Country Manager, highlighted the challenge of Egypt’s historical reliance on cash, but noted the gradual shift towards digital transactions due to government initiatives like Meeza and mobile wallet regulation. These moves, along with expanding payment networks, are nudging consumers towards digital alternatives, especially in urban centers. However, barriers such as limited banking access and digital literacy in rural areas remain challenges to overcome.
dLocal’s strategy focuses on processing payments in Egyptian pounds, which allows international merchants to avoid currency volatility and ensure stable pricing. In the third quarter of 2024, Egypt generated USD 18.6 million in revenue, marking a 318% year-over-year increase, contributing 10% of dLocal’s global revenue.
Despite the challenges, Egypt’s digital payment landscape is thriving, with dLocal’s unified platform offering a scalable solution for businesses to move from cash-based transactions to secure digital payments. This, along with the company’s strategic partnerships with local players, positions dLocal as a key player in Africa’s burgeoning digital payments market.
The rise of Latin American fintechs, including dLocal, is reshaping Africa’s payment landscape, offering localized solutions to address the continent’s fragmented infrastructure. By leveraging experience from markets with similar challenges, companies like dLocal are well-equipped to lead in this emerging digital economy.
