Flash, a revolutionary cashless payments application that originated in Egypt, has succeeded in acquiring a funding round of $6 million. This round was orchestrated by Addition, a prominent venture capital firm, in conjunction with Flourish Ventures, as well as various strategic angel investors. Established in 2021 by two ex-Uber employees, Eric Jordan, and Sherine Kabsh, Flash delivers a unique platform that empowers consumers to carry out purchases directly from their phones. The method involves adding any bank card or digital wallet to the application once, followed by scanning a QR code provided by any company or store, or upon delivery, and subsequently making a payment upon receipt.
Enhancing Digital Payment Solutions
A portion of the newly procured financing is earmarked for advancing Flash’s product development efforts, as well as enticing new companies and consumers within the Egyptian market. The application’s ingenuity and simplicity allow businesses to receive payments from consumers directly without the necessity for point-of-sale (POS) systems or the need for intricate technical integration. Andrew Miskiewicz of Addition expressed his excitement for Flash’s potential impact, stating that it is set to revolutionize the payments landscape in Egypt by simplifying transactions for both consumers and businesses.
A Green Light from the Central Bank of Egypt
In addition to its successful funding round, Flash has also secured approval from the Central Bank of Egypt (CBE) to operate as a payment technology service provider. This crucial approval, obtained in partnership with Banque Misr, fortifies Flash’s commitment to developing the cashless payments business environment, introducing novel products, and diversifying its digital payment portfolio. This approval aligns with the CBE’s financial inclusion strategy for 2022-2025, which focuses on facilitating transactions by transitioning from cash to digital.
Empowering Financial Inclusion
Eric Jordan, the founder and CEO of Flash, asserted that their mobile application contributes to alleviating some of the hurdles facing payments for companies, which are seeking a more convenient and efficient alternative to traditional POS systems. Sherine Kabesh, the co-founder of Flash, stated, “This approval reinforces our commitment to introducing new products, diversifying our digital payment portfolio, and broadening the scope of our digital financial products to reach millions of small business owners. It will fuel growth and progression of the digital economy in Egypt.”
Addressing Cash-Based Inefficiencies
One of the major challenges Egypt, like many African countries, faces is the dominance of cash in its economy. Platforms like Flash aim to address this by providing convenient digital payment alternatives. According to a Mastercard report, 64% of Egyptians have increased their adoption of digital payment solutions in the past year. Flash’s QR-based system alleviates the burden of complex technical integration associated with more expensive NFC-enabled POS systems, making digital payments more accessible for both consumers and businesses.
This seed investment not only solidifies Flash’s position in Egypt’s FinTech scene but also provides an opportunity for valuable insights from experienced investment partners to further advance Egypt’s economy. Ultimately, the firm’s core vision is to empower both traders and investors alike, fostering an environment conducive to the development of a fairer financial system, and propelling the digital economy in Egypt to new heights.