EthSwitch and Visa signed a Memorandum of Understanding (MOU) aimed at deepening cooperation in Ethiopia’s evolving digital payments landscape. The agreement outlines key areas of collaboration, including interoperability, gateway services, security, tokenization, and innovation.
The partnership will allow Visa to connect directly with all banks in Ethiopia through EthSwitch’s national payment switch, improving integration, efficiency, and service delivery across the country’s financial sector.
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The MOU focuses on:
- Interoperability: Ensuring that payment systems across banks and platforms can communicate seamlessly.
- Gateway Services: Allowing Visa to connect through a centralized access point to the Ethiopian banking system.
- Security and Tokenization: Supporting secure transactions and protecting user data through advanced technologies.
- Innovation: Working together to support the development of modern payment solutions.
EthSwitch, established in 2011 and overseen by the National Bank of Ethiopia, is the designated national switch responsible for facilitating interbank electronic payments. It serves as the backbone for various payment systems, including ATMs, POS terminals, mobile banking, and e-commerce.
While Visa Inc. is a global leader in digital payments, operating in more than 200 countries. It provides secure and reliable payment infrastructure and services, supporting both traditional banking institutions and emerging fintechs.
This agreement is expected to improve system-wide efficiency and provide a more secure and interoperable payments environment. It also supports Ethiopia’s broader goal of enhancing financial inclusion and digital transformation.
By working together, EthSwitch and Visa aim to make digital payments more accessible and reliable for consumers and businesses throughout Ethiopia.
