Electronic Pension Payment

Pension Payment Project, The project is one of the largest financial cards issuance in Egypt and the middle east. As 6 million pension cards were issued by e-finance. The cards are managed by efinance as well.  The cards enable the pensioners to receive their pensions from over 2000 post office, and over 4000 pensions’ outlet. Using over 8000 POS. Beside using the 6500 banks ATMs. The project enabled the pensions to use any of these channels at any day of the month. Totaling of 2.5 billion EGP per month being processed and settled by e-finance.

Business Challenge
As part of the Egyptian government modernization plan, a need came to the surface to fully automate all the government’s payment and collection transactions. The initial vision was that banks would open 6 million pension accounts and issue cards according to the standards provided by MOF. The banks were reluctant to issue pension cards due to the high cost of the walk in transactions and the low probability of cross-selling other products to senior citizens who are on low government pension.

Technical Situation
The National Organization for Social Insurance (NOSI) had a manual system for pension payment. The pensioners’ used to show their ID to the tellers who would manually search for the receipts that will be signed by the pensioners. This was a time consuming issue that made people wait for more than 2 hours to get their pensions. The pension payment was done on the 10th and the 20th of every month in order to balance the traffic at the pension outlets. Not to mention, that they are only allowed receiving their pensions from the offices that they are registered at. Many outlets had to work overtime just to finish the payment and the manual settlement of transactions done throughout the day.

The Ministry of Finance (MOF) contracted with e-finance to provide a solution and operate the electronic payment hub for all payments and collections, which electronic pension payment is one of its services. e-finance provided the services of its card center that will issue the cards and monitor the pensioners’ transactions; e-pay system and ATM switch to handle the payments for the 6 million pensioners.

The solution provided by the company was:
• The e-pay system which is used for registering the pensioners and upload the payment files by NOSI’s dedicated staff;
• The ATM switch which is used to monitor the POS and ATM transactions and route transactions to other networks(123 network);
• The card management system (CMS) used for balance inquiry, issuing of new cards and pins, and the activation/deactivation of the cards;
• +10,000 POS(LAN and GPRS) deployed at more +3200 outlets for pension payment;
• 310 ATMs deployed at different places to server the pensioners.