Ethiopian-based national payment firm, EthSwitch has partnered with Mastercard to enable financial institutions across Ethiopia to boost the adoption and usage of digital payments.
The move will enable people and organizations to send and receive money instantly, domestically and cross-border.
The advanced payment solution will deliver a simple and better user experience that will contribute towards the acceleration of Ethiopia’s transition to a cash-lite economy.
Making the announcement, Yilebes Addis, Chief Executive Officer at EthSwitch indicated that Ethiopia is quickly moving into the digital economy and EthSwitch is striving to achieve its strategic goals, which substantially contributes to the success of Digital Ethiopia 2025.
“It is critical that we advance Ethiopia’s financial system to support the economy with an improved flow of remittances in the country. Our partnership with Mastercard is a significant step as we embrace the continued modernization of the national payments system and enhance financial inclusion in the country,” he adds.
With the partnership, customers will enjoy instant payout capabilities and secure transactions which will additionally be enabled to send and receive funds at any moment.
Additionally, Mastercard will provide advisory and technical support to advance EthSwitch’s digital-first strategy, in accordance with local and global best practices. Under the terms of the MoU, EthSwitch will leverage Mastercard’s technology, expertise, partnerships, and cyber intelligence solutions to diversify its payment capability beyond person-to-person payments.
“Mastercard recognizes that consumers today are looking for simple and secure financial products that add more value to their daily lives. Our partnership with EthSwitch supports our endeavor to facilitate digital remittances in this country, therefore bringing financial inclusion to the millions of Ethiopians who need it,” says Dimitrios Dosis, President of Eastern Europe, Middle East and Africa at Mastercard.
This is the latest collaboration between Mastercard and EthSwitch. In November last year, EthSwitch, Oromia Bank and Mastercard announced a landmark partnership that saw all the bank’s Automated Teller Machines (ATMs) in the country accept Mastercard debit, credit, and prepaid cards – the first bank to offer such a service.
“Ethiopia is becoming one of the digitally connected countries in East Africa and cross-border payments have transformed the payments landscape in this market. We have been operating in this country for 14 years now and are exciting to be part of this journey. Additionally, the partnerships we have formed in Ethiopia are just one example of the many ways we are fostering financial inclusion on a continent with enormous potential and helping to forge brighter futures for African citizens and organizations,” adds Dimitrios Dosis.
In Ethiopia, Mastercard’s footprint has been expanded through several partnerships recently formed with local financial institutions, as well as government departments and global organizations.