Makes it possible for companies to roll out their financial solutions

Rewind to 1984 and the company that became Masria Digital Payments (MDP) produced bank cards for the domestic Egyptian market. Of course, there wasn’t much in the way of digital back then, with ATMs being the most advanced technology that the average customer would interact with. Cash was still very much king.

Fast forward to 2022 and MDP is riding the crest of the digital transformation wave. The company now has a footprint in more than 45 countries, working with 170 banks and more than 1,200 dealers in the Middle East and North Africa (MENA) region. The rapid transition to digital, accelerated by the COVID-19 pandemic, has seen MDP deliver a staggering 72 million cards in the past three years alone. And with digital payments at the heart of the fintech ecosystem, MDP acts as a catalyst for financial empowerment – ​​giving fintechs the knowledge they need to succeed.

“MDP started 38 years ago as a consumer card manufacturer. Looking back, the company established several milestones as the first card manufacturer and the leading card issuer with all the major banks in Egypt,” said Ahmed Nafie, CEO of MDP.

“MDP transitioned into a payment infrastructure powerhouse, combining the world of card issuance and processing, with advanced APIs that allow card issuers to launch their products seamlessly.”

The MDP journey is fascinating, and a classic example of how a business pivots to survive and thrive – something we all became familiar with during the pandemic, but a situation MDP faced in 2011 during Egypt’s revolution.

At the time, the MDP had been successful in working with the government to produce smart cards for public transport, but the revolution changed the economic landscape.

“When the revolution happened, we saw one business area that was unaffected, which was financial services,” recalls Nafie. “People still needed financial services, so in 2011 we started focusing on the banks.”

This focus made MDP expand its horizons, expanding from just serving the domestic market to 40 countries today. MDP also became the largest producer of bank cards in Africa. Like all successful companies, MDP did not just enjoy its market position, but instead looked for new opportunities, and the next big thing.

“We saw a gap in the payment processing market in 2017, so we started looking at the idea of ​​doing our own data processing. And that’s when MDP was spun off as a separate company dedicated to premium processing – which basically allows banks to issue cards to customers to manage and shop online.”

The next milestone in the MDP story came in 2020, when Nafie realized the potential of fintech. Even then, he thought that traditional brick-and-mortar banks would be the bedrock of their business, but quickly saw the potential of this new breed of fintech innovators.

“Suddenly we found a whole new set of companies that really needed our services,” says Nafie. “Before then, our primary business, even on the cards, was for banks. We never anticipated that small start-ups or fintechs would have a growing demand for our digital payment solutions and expertise.”

In the MENA region, MDP is the digital payment partner of choice for the majority of fintechs. Known and trusted by central banks, MDP is in a unique position to offer a one-stop solution for customer-centric payment solutions and has become an enabler of fintech in the region.

Through their open API card issuance platform, MDP is driving delivery-on-demand startups in the region – disruptors that have boomed in recent years and continue to thrive in developing markets.

“Our focus is to build and invest in the most progressive tools and technology that support the disruptors in the market,” says Nafie. “It’s the ease of use and focus on providing seamless customer experiences that will shape the future of payments.”

MDP’s FinTech Enablement Program aims to strengthen the fintechs of the future, and simplify their digital payment journey that includes payments, payouts, loyalty and operational requirements.

By offering a plug-and-play model, MDP makes itself attractive to young startups who need guidance to bring their ideas to life. This is where MDP provides the most value – with its networks, partnerships and industry knowledge.

MDP’s solutions have already enabled and operated more than 30 local and regional fintechs in the region, with success stories that include end-to-end digital payment services.

MDP enables businesses of all sizes to control payment programs and their omni-channel customer experiences. They manage not only the scalable issuance of cards, but also the experience when users transact with the card. MDP solutions also include real-time data, fraud protection, analytics and reporting tools that enable businesses to access rich data to further enhance the customer experience.

The MDP difference

Of course, MDP is not the only player in this market, despite their dominance, so what made them rise to the top where others have faltered? What makes MDP better than the competition?

“It’s a competitive field,” admits Nafie. “There are players from fast startups to legacy presses – there for 30 or 40 years. Our edge at MDP comes from our customer-centric approach and flexibility to adapt to market needs. Payment processors have traditionally been more rigid and less likely to move at a fast pace similar to startup.

“So we realized this very early on, if our customers demanded cards, we could deliver on short notice.”

Nafie goes on to explain how many of the fintechs they work with appreciate the flexibility and knowledge that comes from MDP’s experience. For example, a card issued through a startup venture may be redundant just six months later. MDP can anticipate this and be ready to deliver the next generation solution as and when required.

“At the end of the day, if I have 10 customers and they only issue 1,000 cards each, because I’m inflexible, then there’s no benefit to me,” he says. “But if I actually work a lot harder for these guys, go the extra mile and keep changing the product for them, and they improve their products, suddenly they have a million customers making money. This is the bottom line. My main goal as MDP’s CEO is to focus on customer success, which contributes directly to their business growth.”

The second point Nafie is keen to make is the development of MDP’s own APIs – something he describes as the key factor for new digital banks.

MDP has developed an internal API layer that they are able to manage themselves, without having to rely on a third party. This allows for greater customization and the use of fresh ideas from customers to innovate even more.

The third difference that makes MDP stand out from the crowd is the fact that they offer turnkey solutions – something that is rare if not unique in the MENA region.

“We have the fulfillment, we have the processing, and we have the APIs,” says Nafie. “So if you want to issue a card, you only need to speak to the MDP – no one else. Everything is internal.”

“Fintechs need to be agile and move quickly, so being able to offer the complete solution is a real advantage for our customers.”

It is not only fintech startups that appreciate the full service that MDP can offer – even central banks turn to MDP as a trusted partner to guide fintech startups through the regulatory processes.

Looking to the future, which countries in MENA offer the greatest potential for digital payments? The focus had previously been a lot on North Africa, but Nafie reveals that MDP sees Pakistan as a next target market – as it has many similarities with the Egyptian market MDP knows so well.

“Pakistan has a landscape very similar to Egypt – a large population, most of them under the age of 25, and tech savvy,” says Nafie. “They have a very advanced central bank that wants to promote fintech.

“And this is interesting. We initially thought that some of the central banks would try to support traditional banks and not support fintech, but that has not been the case in Egypt and Pakistan. This is why we see these two markets as key for the future.”

If understanding the current market and anticipating the evolving needs of customers was the first step in the development of MDP, then the company’s important next step is to scale the business – focusing on payment processing and offering a complete suite of solutions that fit the entire banking and fintech ecosystem .

“We are very clear about what we want to do,” says Nafie. “It is inevitable for us to get up close and personal with our customers, our customer-centric approach resulted in sustainable, long-term relationships with key financial institutions and fintechs in the market.

“We are a company that started as part of a group that has been around for 38 years, and we hope to continue to disrupt the market in the MENA region for the next period.”