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MASROOFI, an Egyptian fintech company, raises $1.5 million to fund a kids’ e-wallet.

Egypt-based financial company Masroofi has been successful in raising $1.5 million from unnamed investors.

With the help of this funding, the business will be able to offer digital payment options to more kids, focusing on those between the ages of 5 and 15.

In order to address the financial inclusion of children, Mostafa Abd Elkhabir (36), who has over 15 years of experience in market research, and Sayed Hosney El Shemy (40), who has close to 20 years of experience in software development, founded Masroofi (‘My Pocket Money’) in January 2023.

Local reports claim that most Egyptian children grow up knowing next to nothing about managing money and having little access to cashless options. Additionally uncommon in the educational system is financial education.

Parents can establish their own profile within the mobile application using the Masroofi platform. They may easily reload their wallet using their own debit or credit card, and for a price of EGP 75 ($2.43), they can also obtain a card for their child.

Parents can thereafter send money to their children’s Masroofi cards. The kids can make different purchases using these cards at Masroofi’s point-of-sale (POS) terminals.

In contrast to conventional Mastercard or Visa cards, Masroofi offers banking cards. These are near-field communication (NFC) cards, instead. By tapping two NFC-enabled devices together, such as the Masroofi card and a suitable card reader, smooth communication can be established.

“Most parents find it difficult to let their kids carry cash because they frequently have no idea what it is worth. Either they waste the money or they lose it. According to Abd Elkhabir, this is our seamless solution for parents, with regular notifications to parents of their children’s spending patterns.

The platform’s goal is to give kids a card payment experience that is comparable to what adults have, so they may become gradually accustomed to this part of financial transactions. The application also aims to teach kids the value of saving money and introduce them to investment strategies, creating a deeper grasp of these ideas from a young age.

“We laud Egypt’s efforts to promote financial inclusion. Only Egyptians who are 16 years old or older are permitted to open bank accounts and use cashless systems. We are bringing kids into this cycle through Masroofi so they may learn about various cashless solutions and digital payment options as they get older, according to Abd Elkhabir.

Within a period of five years, the Egyptian business hopes to create a network of 2 million kids. Approximately 4 million kids in Cairo, Giza, and Alexandria, as well as 2 million kids in communities, international clubs, and schools, make up Masroofi’s initial target audience.

In Egypt, there are numerous excellent prospects for the financial technology sector to expand;

• Remittances from Egyptians abroad
• The Islamic economy
• The installment payment system

The country’s population of over 110 million and the vast number of governorates is serviced by only 140 fintechs providing a huge opportunity as progress in digitization picks up in the Egypt.

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