Dashen Bank has introduced a seamless fuel payment feature through its Super App, marking a step towards wider involvement in Ethiopia’s liberalising digital fuel payment ecosystem. The bank announced the initiative on Tuesday. The move makes Dashen the most recent player to challenge the established dominance of state-backed platforms.
Telebirr and digital wallets from the Commercial Bank of Ethiopia (CBE) and the Cooperative Bank of Oromia (COOP) were the main—and for a while, the only—channels for fuel payments in the nation for almost two years. However, policy liberalisation and digital reform are causing a shift in Ethiopia’s fuel payment system.
Significant reform to digitise fuel payment system
A major milestone was reached in April 2023 with the national fuel reform, which was started by the Ministry of Transport and Logistics. Significant cost savings and improved transaction efficiency resulted from the reform, which aimed to digitise the industry using state-of-the-art technologies.
The digital framework has already saved the nation more than ETB 190 billion in expenses and allowed more than ETB 430 billion in digital transactions, according to State Minister Bareo Hassan.
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The ministry’s state minister, Bareo Hassen, spoke at the launch and commended Dashen Bank for acting quickly to comply with the government’s demand that banks join the national system.
“But this wasn’t a complete success,” Bareo acknowledged, noting that participation has remained limited to only a few players.
The Ministry of Transport and Logistics, in partnership with Ethio Telecom and the Ministry of Innovation and Technology, has been developing a comprehensive platform for digital fuel payment integration to alleviate this bottleneck. Dashen Bank has now responded to the call for wider banking sector participation in the initiative.
Benefits of Dashen Bank’s digital fuel payment system
This service improves operational efficiency for petrol stations, streamlines the customer experience, and gives government regulators new oversight tools. Nestled within its main Super App, Dashen’s mini app allows users to pay easily and complete a straightforward form, modernising one of the most important consumer transactions in the nation.
The state minister commended Dashen Bank’s prompt adoption of the program, citing it as evidence of the private sector’s growing support for Ethiopia’s digital transformation goals.
“Dashen Bank has demonstrated strong digital capabilities, making it a suitable partner in promoting the adoption of modern payment solutions in the fuel sector,” Bareo emphasised.
Dashen Bank CEO Representative Ayele Teshome said during a press conference that consumers can now use the Dashen Super App to pay for fuel at specific stations with just three clicks. The bank intends to launch the service across the country in the upcoming weeks.
“Our fast and secure fuel payment feature allows customers to log in, select the fuel payment mini app, and scan a QR code to complete the transaction instantly,” said Ayele.
Dashen Bank hopes to promote financial inclusion, increase transparency, and aid in the digitisation of vital services in Ethiopia by integrating with the ministry’s fuel aggregator platform.
Dashen Bank, one of the nation’s pioneers in digital banking innovation, keeps making investments in cutting-edge technologies that adapt to changing consumer demands and regulatory changes.