EthSwitch hosted an awareness workshop at Sheraton Addis under the theme Accelerating Adoption of Ethiopian Interoperable QR Payments. The event brought together senior officials from banks, microfinance institutions, payment system operators (PSOs), payment instrument issuers (PIIs), government agencies, and other key stakeholders. The workshop opened with remarks by Mr. Solomon Desta, Vice Governor of the National Bank of Ethiopia (NBE), who highlighted the nation’s progressive strides toward modernizing its payment systems. “We are entering a transformative phase in building a comprehensive, efficient, and competitive financial ecosystem by introducing a diverse range of payment options,” he stated. He emphasized that in FY 2023/24 the interoperable QR Scheme Rule was approved and now all payment service providers are mandated to implement interoperable QR payment systems starting from December 1, 2024.
Mr. Solomon elaborated, “By prioritizing interoperability over isolated infrastructure development, financial institutions can focus on enhancing their service offerings, elevating market competitiveness to unprecedented levels.” The interoperable QR payment initiative, overseen by the NBE, relies on infrastructure provided by EthSwitch. This unified approach ensures that financial service providers concentrate on service innovation and market expansion while fostering seamless competition. EthSwitch’s CEO, Mr. Yilebes Addis, underscored the broader implications of interoperability. “An interoperable digital payment system facilitates cross-border transactions, strengthening our integration into regional and global markets while fostering economic cooperation. To achieve this, financial service providers must integrate into the interoperable system and enhance their operational capabilities,” he remarked. He also affirmed EthSwitch’s readiness to operationalize the interoperable QR system, which prioritizes customer-centric innovation.
Discussions during the workshop highlighted the numerous benefits of the interoperable QR system, including its ability to promote widespread adoption of digital payments, reduce transaction costs, and encourage small and medium-sized enterprises (SMEs) to embrace digital payment solutions. The interoperable QR payment standard is designed to accommodate both domestic and international transactions. Businesses can utilize a single QR code that is compatible with all financial service providers, enabling consumers to complete transactions seamlessly using any banking application or mobile wallet. EthSwitch’s ongoing implementation of the Instant Payment System (IPS) was also emphasized as a cornerstone in transforming Ethiopia’s financial ecosystem. The IPS facilitates faster, more convenient, and secure transactions for financial institutions, merchants, and customers alike. From an economic perspective, interoperable QR payments not only foster innovation and service expansion but also reduce reliance on informal transactions, enhancing transparency and accountability. By integrating formal trading systems, this initiative is poised to significantly reduce cash dependency in the Ethiopian economy.
Mr. Solomon Damtew, Director of the Payment and Settlement Systems Directorate at NBE, stressed in his closing remark the critical importance of transitioning to a unified interoperable QR payment system. He noted, “This approach eliminates the inefficiencies of proprietary QR codes and promotes service standardization across the financial sector.” He also reaffirmed that NBE will rigorously monitor the implementation process. EthSwitch calls on all financial service providers, merchants, and stakeholders to actively participate in implementing interoperable QR payments. This strategic shift will be instrumental in advancing Ethiopia’s financial landscape and creating a more inclusive, efficient, and interconnected payment ecosystem.
