Following the partnership between financial services giant MasterCard and two Ethiopian financial firms, MasterCard’s prepaid, credit, and debit cards are set to be accepted in Ethiopia.
Ethiopia-based Oromia Bank and the country’s national payment switch EthSwitch have partnered with MasterCard to bring the global payment solutions company’s services to Ethiopians.
Both tourists and citizens of Ethiopia with MasterCard payment cards can now withdraw the Ethiopian birr, the local currency, through Oromia Bank ATMs. EthSwitch will be in charge of processing the withdrawals.
The next stage of the partnership is targeted at enabling buyers to pay for goods and services using MasterCard payment cards. EthSwitch, MasterCard, and Oromia Bank are working together to ensure that the cards are usable at Points of Sale.
Major Actors in the Ethiopian Financial Space
Oromia Bank has a substantial presence in Ethiopia, with more than 400 branches across the country. Besides, the bank has also launched new banking services in Ethiopia, including interest-free banking.
Ethiopia has experienced a massive upsurge in ATM usage after it was initially implemented in 2001. At the close of the 2020/2021 financial year, Ethiopia handled more than 225 million ATM transactions in total. Of these figures, EthSwitch processed 38,302,370 (around 6%) interbank transactions.
Improving Financial Freedom in Ethiopia
According to MasterCard’s country manager in Ethiopia, Shehryar Ali, who explained the company’s commitment to backing Ethiopia’s digital transformation goals: “Ethiopians are increasingly seeking safe, seamless, and consistent digital experiences. Backed by the speed and security of Mastercard’s global network, we are pleased to partner with EthSwitch and Oromia Bank to lead the transition to digital, while supporting Digital Ethiopia 2025 vision to modernise the payment system.
“Importantly, we are also contributing to the financial freedom of Ethiopia’s citizens, and anyone visiting the country for work or leisure. Together, we can connect more people to the global digital economy while laying the groundwork for future innovation.”
Yilebes Addis, EthSwitch’s Chief Executive Officer, also commented on his organisation’s plans for Ethiopian payments. “Oromia Bank is the first bank to accept Mastercard payment cards using EthSwitch as the payments processor – a milestone we are extremely proud of.”
“The mandate of EthSwitch is to contribute to the modernisation of the national payments system and enhance financial inclusion in the country. Through this partnership, we are progressing [toward] this goal by enabling interoperability of ATMs and making it easier for people to transact,” Addis stated.
In his explanation of the latest advances for payments within Ethiopia, Teferi Mekonnen, the president of Oromia Bank, said: “Ethiopia has witnessed a significant shift in [the] growth of electronic payments over the last few years and the bank has played a significant role in pioneering new banking practices,”
“We remain committed to developing appropriate payment channels to provide people with more convenient, secure, and reliable ways to access funds in the country. This partnership with EthSwitch and Mastercard is the latest example of how we continue to collaborate on this journey.”
