First Data Corp. signed a three-year contract with an Egyptian ministry to manage a prepaid benefits smart card. The program initially will target monthly grocery purchases for 4.5 million families but eventually will expand to support other government benefits.
First Data will issue and process the multifunction, reloadable prepaid smart cards for the Ministry of State Development’s subsidized family food program and Social Solidarity pensions.
Masria Card, Egypt’s oldest card manufacturer will make the cards. Aviation Information Technology, a subsidiary of the Egyptian Holding Company for Airports and Air Navigation–Ministry of Civil Aviation, will host the data services from its data center. It also will support installation and maintenance of 11,000 new point-of-sale terminals in nine Egyptian governorates.
For consumers participating in the food program and who receive Social Solidarity pension services, loads funds into the card account, and cardholders then may use the funds to pay purchase food at local grocery stores. The ministry, based in Cairo, is charged with modernizing Egypt’s government. First Data will distribute the cards over seven months, working with local governments and Masria Card employees.
“Prepaid cards are an effective way of reaching underserved and unbanked populations–a common feature in developing payment markets such as Egypt,” George Tsoutsos, managing director of First Data North Africa, said in a statement. “Through prepaid card programs, government organizations can offer consumers increased utility within a secure environment, enabling them to participate in an increasingly cashless society.”
The agreement between First Data and the ministry is the Atlanta-based processor’s first contract in Egypt. When other services launch, consumers will be able to use the card to access health, transportation, gas and other subsidies.
“With First Data’s support, we will be able to provide citizens with reliable and convenient access to subsidized food and Social Solidarity pension services, with the scope to expand the project to include a range of other government benefits in the future,” Ahmed Samir Elrafie, head of policies and programs at the Ministry of State for Administrative Development, said in a statement.
