EthSwitch, Ethiopia’s national payment switch, has signed a new partnership with Mastercard that will let Ethiopian banks issue prepaid cards that work worldwide. The deal will also allow Ethiopian businesses to accept international payments for the first time.
The agreement was signed on Monday at the Sheraton Addis hotel.
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Through this partnership, EthSwitch will connect directly to Mastercard’s global network using the Mastercard Interface Point (MIP) and Mastercard Payment Gateway Services (MPGS). Mastercard will also give technical and advisory support to help Ethiopian banks upgrade their payment systems.
With this new setup:
- Banks in Ethiopia can issue prepaid hard-currency cards that work at ATMs, shops, and online stores around the world.
- Businesses in Ethiopia can accept payments from foreign cards, making it easier for them to sell to international customers.
EthSwitch CEO Yilebes Addis said the deal will “take EthSwitch to the international level.” He explained that global payment acceptance will help e-commerce grow in Ethiopia. He also said foreign cards will now be usable at Ethiopian payment terminals.
EthSwitch recently reported strong financial growth. The company earned a record 1.4 billion birr gross profit, a 34% increase from last year. Person-to-person (P2P) transfers brought in almost half of its revenue, while ATM transactions contributed about 46%.
Mastercard’s East Africa Country Manager, Shehryar Ali, praised EthSwitch for helping move Ethiopia away from cash. He said Mastercard’s global standards and security tools will help build trust and make international payments easier. He also mentioned that the partnership could help increase remittances coming into the country.
EthSwitch is owned by all Ethiopian banks, the National Bank of Ethiopia, and other key institutions. It was created to connect financial institutions, support digital payments, and provide shared payment infrastructure for the country.
Source: Shega Media
