Starting December 1, all payment service providers in Ethiopia are required to adopt the Standard for Interoperable QR Code Payments as mandated by the National Bank of Ethiopia (NBE). This directive aims to unify the various QR payment codes currently in use, ensuring that all providers align with the central bank’s guidelines to create a more efficient and accessible digital payment environment.

Launched officially in April at the inaugural Ethiopian Digital Payments Conference, the interoperable QR payment standard was developed by the national switch operator, EthSwitch, and is owned by the NBE.

The standardised format allows QR codes to work seamlessly across any participating mobile payment app, removing the need for multiple QR codes for different payment providers. With this standard, merchants will be required only to display a single QR code to receive payments from any customer, regardless of their financial institution.

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Transforming Ethiopia’s digital payment ecosystem

Interoperable QR codes represent a significant step forward in Ethiopia’s digital payment landscape. Traditional QR codes are often restricted to a specific payment app or bank, which can create inefficiencies for merchants and users. By introducing a unified QR code standard, Ethiopia aims to simplify transactions, making it easier for businesses and consumers to participate in the digital economy. This standardisation comes as part of Ethiopia’s ongoing effort to enhance its digital payment ecosystem, which has expanded rapidly since the adoption of the National Digital Payment Strategy (2021-2024).

According to the NBE, the country’s digital payment system processed more than 2.7 billion transactions worth over 9.7 trillion birr during the 2023/2024 fiscal year. The number of digital payment accounts, including mobile banking, mobile money, internet banking, and debit cards, has surged to over 198 million. The interoperable QR code initiative is expected to further boost these figures by making digital payments more convenient and accessible across the nation.

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EthSwitch’s role in QR code interoperability

EthSwitch, the national switch operator, will play a critical role in implementing QR code interoperability across Ethiopia’s digital payment infrastructure.

Under the supervision of the NBE, EthSwitch has previously managed the interoperability of ATMs, POS terminals, digital wallets, mobile banking, and internet banking systems. With this mandate, EthSwitch will extend its infrastructure to support QR code standardisation, ensuring that all payment providers can participate in a seamless and unified payment experience.

The move toward interoperable QR codes aligns with Ethiopia’s broader push to modernise its financial system and increase financial inclusion. By standardising digital payment methods, the NBE aims to support Ethiopia’s growing digital economy, reduce transaction barriers for businesses, and encourage more Ethiopians to adopt digital payment options. This interoperability initiative sets the stage for a more cohesive digital financial system, fostering a streamlined approach to digital transactions nationwide.