Today we’re speaking with a leading expert in financial technology who has been closely involved in the development of national payment infrastructures. We’ll be exploring Ethiopia’s recent leap forward with the launch of its national instant payment system, EthioPay-IPS. Our conversation will touch on the monumental task of unifying the nation’s financial institutions, the tangible benefits of new payment technologies like QR codes and payment aliases for everyday citizens and merchants, and the incredible growth already seen in digital transactions. We will also discuss the strategic choice of the SmartVista platform and how this new system is set to streamline public service payments, ultimately reshaping Ethiopia’s digital economy.
The launch of EthioPay-IPS aims to create a simple, affordable, and secure payment infrastructure for Ethiopia. What were the biggest challenges in unifying 32 banks and various other financial institutions, and what specific steps did you take to ensure the system would be both future-ready and open to innovation?
Bringing together such a diverse group—32 banks, 12 microfinance institutions, and more—was a monumental undertaking. The primary challenge was creating a single, cohesive ecosystem where everyone could operate seamlessly, regardless of their size or existing technology. The key was to build a system based on a modern, scalable platform that could act as the central nervous system for the entire financial network. We focused on creating a locally governed framework that wasn’t just a point-in-time solution but a foundation for the future. By selecting the SmartVista platform, we ensured the system was built on international standards, which gives it credibility and longevity. This allows for an open architecture where new services can be added, ensuring that as Ethiopia’s digital needs evolve, the payment rails are ready to support that innovation.
The new system introduces features like alias-based payments and interoperable ETHQR. Could you walk us through how these features simplify daily transactions for the average Ethiopian, and what impact do you expect this to have on merchant adoption rates across the country?
These features are game-changers for daily life. Imagine you need to pay a friend back for lunch. Instead of fumbling with long account numbers, you can now send money instantly just by using their phone number—that’s the power of alias-based payments. For merchants, the interoperable ETHQR is incredibly powerful. A small shop owner can display a single QR code, and a customer from any of the 32 connected banks can scan it with their mobile app and pay immediately. This eliminates the need for expensive POS machines and simplifies reconciliation. We expect this to dramatically increase merchant adoption because it lowers the barrier to entry for accepting digital payments. This convenience and simplicity are what will truly drive the transition away from cash.
With person-to-person transactions more than tripling to 128 million operations in the last year, what key factors drove this explosive growth? How does the new instant payment system build on this momentum, and what metrics will you use to measure its success in the coming year?
That incredible growth, seeing P2P transactions jump to 128 million, was fueled by a growing trust in digital channels and the initial interoperability efforts that made moving money easier. It was a clear signal from the public that they were ready for more. The new instant payment system, EthioPay-IPS, is like pouring gasoline on that fire. It takes the existing momentum and supercharges it by making transactions real-time, whether it’s an account-to-account transfer or a wallet-to-wallet payment. Success for us won’t just be about transaction volume, though we expect that to climb. We’ll be closely watching merchant adoption rates, the growth in QR payments, and the uptake of new services like request-to-pay and recurring payments. The real measure of success will be how deeply these tools become embedded in the daily economic life of Ethiopians.
Selecting a single, scalable platform like SmartVista was a major decision. Beyond meeting international standards, what specific local market needs did this platform address, and can you provide an example of how its central monitoring capabilities help manage traffic from all member institutions without disruption?
Absolutely. While international standards are crucial for security and interoperability, the platform had to be flexible enough for Ethiopia’s unique context. For example, it needed to support not just banks but also microfinance institutions, which are vital for financial inclusion in our communities. The system was designed to handle a mix of transaction types, from simple P2P transfers to more complex bulk and trade payments. The central monitoring is one of its most powerful aspects. Think of it as an air traffic control tower for all digital payments. It allows us to see all the traffic—the 120 million ATM transactions, the nearly three million POS transactions, and now all the instant payments—in real time. This means if there’s a bottleneck or an issue at one institution, we can manage it centrally without it causing a system-wide disruption, ensuring the entire network remains resilient and reliable for everyone.
The system enables a unified platform for settling utilities, taxes, and government fees. Could you elaborate on the process for integrating these public services, and what are the main benefits for both the government agencies and the citizens who use this feature for their payments?
Integrating public services is a core part of creating a truly digital economy. The process involves working with government agencies to connect their billing systems to the EthioPay-IPS rails. Once integrated, a citizen can receive their tax bill or electricity bill directly in their banking app and pay it instantly with a single click. For the government, this is a huge leap in efficiency. It streamlines revenue collection, reduces the administrative burden of handling cash or checks, and provides a clear, real-time picture of payments. For citizens, the benefit is profound. No more standing in long lines to pay a bill. They can settle their obligations from anywhere, at any time, with the peace of mind that the payment is secure and instantly confirmed. It’s about giving people back their time and making civic duties less of a chore.
What is your forecast for Ethiopia’s digital economy over the next five years?
My forecast is one of exponential growth and transformation. We have now laid the foundational rails with EthioPay-IPS, and the train is just leaving the station. Over the next five years, I expect to see an explosion of innovation built on top of this infrastructure. We will see a dramatic increase in merchant acceptance of digital payments, moving far beyond cities into smaller towns and rural areas. Financial inclusion will deepen as more people access services through their mobile wallets and accounts. I also predict a surge in new fintech services—things we haven’t even thought of yet—because the open and interoperable nature of the system invites creativity. This isn’t just about making payments faster; it’s about unlocking economic potential, fostering new businesses, and creating a more efficient, inclusive, and secure financial ecosystem for all Ethiopians.