The National Bank of Ethiopia (NBE) is taking a major step towards a more unified and efficient digital payment ecosystem. Effective December 1st, 2024, all payment service providers will be required to adopt standardized QR codes, replacing the current patchwork of systems.
This move, announced by the NBE on November 7th, 2024, aims to streamline digital payments by ensuring all QR codes adhere to a single set of standards. The bank believes this will enhance security, interoperability, and user experience, ultimately boosting merchant payments and driving economic growth.
EthSwitch, the National Switch of Ethiopia, will manage the infrastructure for QR code interoperability under the NBE's supervision, ensuring compliance with the new standards. This initiative is a key component of the National Digital Payment Strategy (2021-2024), which has already seen remarkable success in Ethiopia's digital payment sector.
In the 2023/24 fiscal year, the country processed over 2.7 billion digital transactions, with a value exceeding 9.7 trillion birr. Digital payment accounts have surpassed 198 million, demonstrating a clear shift towards cashless transactions.
The NBE is confident that the standardized QR code system will further transform merchant payments and transactions across Ethiopia, providing a secure, user-friendly experience and strengthening the digital payment ecosystem. This move is expected to accelerate the adoption of digital payments, contributing to Ethiopia's economic growth and development.