Ethiopia’s National Bank licenses Arifpay as the first private switch operator, advancing digital payments and financial inclusion nationwide.
Ethiopia has achieved a landmark in its financial sector. Recently, the National Bank of Ethiopia (NBE) officially recognized Arifpay Financial Technologies S.C. as the country’s first licensed private switch operator.
Kenya is leading the continent in digital payments and mobile money innovation, with over 70% of the population actively using mobile money services like M-Pesa. According to the Central Bank of Kenya (CBK), digital transactions accounted for over 80% of all payments in 2024, up from 68% in 2019.
The Ethiopian approval aligns with the government’s National Digital Payments Strategy 2030. As a result, Ethiopia moves closer to a more inclusive digital economy.
“Arifpay’s licensing represents a key step in modernizing Ethiopia’s financial infrastructure,” said Fitsum Assefa, NBE Governor. “Furthermore, it will extend services to millions who remain underserved.”
Transforming Financial Inclusion
Moreover, Arifpay’s platform enables real-time transactions across banks, microfinance institutions (MFIs), SACCOs, mobile wallets, and insurance providers. In addition, the system centralizes merchant acquiring, allowing businesses to accept payments from multiple channels through one integrated platform. Consequently, transaction costs decrease and operational efficiency improves.
“We are empowering SMEs, corporates, and government entities to transact seamlessly and securely,” said Arifpay CEO Bereket Tadesse. “Additionally, our platform enables large-scale payroll, supplier payments, and remittances to flow faster than ever.”
Analysts estimate that over 5 million businesses and financial service providers in Ethiopia could directly benefit. Furthermore, more than 30 million consumers may gain easier access to digital payments.
Economic Impact
Importantly, a licensed private switch operator will boost Ethiopia’s economy. By enabling faster and safer payments, financial transparency improves. As a result, SMEs—a vital sector for Ethiopia—can expand more efficiently. Moreover, the government can reduce informal cash transactions and increase tax compliance.
“Digital payments are critical for economic modernization,” said Dr. Abebe Aemro, Ethiopian Economic Policy Institute. “Consequently, Arifpay can catalyze investment and improve liquidity in the formal economy.”
Trade, manufacturing, and agriculture sectors are expected to gain significantly. Meanwhile, the government can use digital payments to streamline public services.
Innovation and Digital Expansion
In addition, Arifpay’s offerings go beyond payment processing. The company provides credit scoring tools, a super app for mobile banking, and enhanced cross-border remittance solutions. Soon, the Super Agent Platform will consolidate all agent services into a single interface. This approach simplifies adoption in rural and underserved areas.
“Our goal is to make digital finance accessible to every corner of Ethiopia,” Bereket said. “Furthermore, we are bridging the gap between traditional finance and the modern digital economy.”
The government expects private switch operators to handle nearly 80% of electronic transactions by 2030. Consequently, cash usage will decrease and transparency will increase.
Future Outlook
Looking ahead, Arifpay sets a precedent for private sector participation in financial infrastructure. In particular, its integration will foster partnerships between banks, fintechs, and payment providers. As a result, a competitive and efficient ecosystem is emerging.
“Arifpay’s entry into Ethiopia’s payment system is a watershed moment,” said TechAfrica News. “Additionally, it is expected to enhance inclusion, drive growth, and modernize payments nationwide.”
Moreover, as Arifpay expands, transaction speeds will improve. Operational costs for businesses will decrease. Furthermore, rural populations will gain better access to financial services. Ultimately, this development represents a major step toward Ethiopia’s 2030 digital finance goals.
Leave a Reply