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Promoting digital payments has become a primary objective for African governments, especially in tech-driven economies where cash reigns. This initiative has amplified the population of banked citizens in several regions, with Egypt leading the way in the adoption of electronic wallets and cards.
Flash, an Egyptian fintech company that offers cashless payment solutions via QR codes, has recently secured $6M in seed funding, directed by Addition. Led by ex-Tiger Global executive Lee Fixel, Addition leads the investment alongside Flourish Ventures and other angel investors. This funding will allow Flash to expedite product development, expand its customer base, and boost business acquisition in Egypt.
Reinventing the Digital Payments Landscape
Despite the prevalence of e-wallets and cards in digital payments, the apex bank of Egypt is showing interest in contactless payment methods. But, with Apple Pay, Google Pay, and Samsung Pay—known for facilitating contactless payments via digital cards in mobile wallets through near-field communication (NFC) tech—mostly unavailable in Africa, Flash offers a noteworthy alternative.
Flash allows customers to purchase by adding any existing bank card or digital wallet to its app and scanning the business’s QR code. This eliminates the need for businesses to integrate complex, costly NFC-enabled point-of-sale (POS) systems.
“We’re eliminating the need for cash or carrying cards for our consumers and the POS machine on the merchant side,” stated Flash co-founder and CEO, Erik Gordon according to TechCrunch. He further noted that this process minimizes integration, setup, and maintenance costs for businesses.
Challenging Cash-Based Societies
The struggle to mitigate cash transactions resonates with Flash’s background. Its founders, Gordon and Sherine Kabesh, spent their earlier careers at Uber, dealing with the challenges of a cash-based society such as Egypt, where allegedly 90% of Uber’s rides are paid in cash. The pair decided to create a solution to support Egypt’s financial inclusion strategy, resulting in the genesis of Flash.
Flash is now leading the way with its digital payment portfolio, which includes automated bill payments and behavioral insights into spending in partnership with major Egyptian bank Banque Misr.
The Future of Digital Payments
With nearly 80% of goods purchased online in Egypt being paid cash on delivery (COD), Flash’s focus lies with e-commerce platforms and businesses relying on COD payments. Flash’s solution allows consumers to scan the QR code at the point of collection. According to Gordon, settlements occur the following day, which he claims is the market’s best.
While acknowledging the potential security concerns associated with QR code technology, Gordon assures that businesses on Flash are rigorously onboarded in line with regulations set by the CBE and Banque Misr.
With over 50,000 transactions and a growing 30% monthly revenue, Flash is well-positioned to transform Egypt’s digital payment landscape. Its investor Andrew Miskiewicz of Addition believes that the fintech startup will simplify the intricate transaction process, offering a safer and easier-to-use application for both consumers and businesses.
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