Ethiopia’s EthSwitch Reports Over 250% Growth in P2P Transactions, Surpassing ATMs in Value
EthSwitch, Ethiopia’s National Payment Switch, has marked a transformative year by recording over a 250% year-on-year (YoY) increase in peer-to-peer (P2P) transaction volumes, overtaking ATMs in terms of transaction value. This growth underscores a rapid shift toward digital payment methods in Ethiopia, driven by increased financial inclusion efforts and the adoption of interoperable financial services.
Record Achievements in 2023/24
EthSwitch achieved significant milestones, including:
- Net Profit: The company reported a net profit of $6.4 million, reflecting an 86% rise in revenue. Cost optimization and operational efficiencies were pivotal to this performance.
- Transaction Growth: Over 14.4 million interoperable P2P transactions were conducted, representing a 584% increase from the prior year. These transactions utilized mobile and internet banking apps, USSD channels, and digital wallets.
- ATM and POS Transactions: EthSwitch facilitated 71.5 million ATM transactions valued at 89.76 billion Birr and processed 970,434 POS transactions worth 2.6 billion Birr, showcasing a robust 79% and 169% YoY increase, respectively.
Key Factors Behind EthSwitch’s Success
- Interoperability Expansion: EthSwitch’s interoperable payment infrastructure allows seamless transactions across banks and microfinance institutions. Its two-tier model connects banks as issuers and acquirers, simplifying P2P and merchant payments.
- Digital Banking Growth: The company’s efforts to enable interoperable P2P transactions have driven adoption across rural, urban, and peri-urban areas, supported by strong partnerships with local banks and financial institutions.
- Global Integration: Collaborations with global payment systems like MasterCard and Visa further strengthened EthSwitch’s capacity to support domestic and cross-border transactions.
Implications for Ethiopia’s Economy
EthSwitch’s performance highlights the potential for digital payments to drive economic transformation by increasing financial inclusion and reducing dependency on cash-based transactions. As Ethiopia continues to adopt cashless technologies, the rise in digital banking activity reflects shifting consumer preferences and a maturing fintech ecosystem.
Looking forward, EthSwitch plans to expand its reach and enhance services to include more institutions and innovative solutions to meet the growing demand for digital payment systems.
For more details, see the original reports from Ethiopian Monitor
TawkCrypto’s Take
EthSwitch’s success story highlights the growing adoption of digital payments in Africa. The surge in P2P transactions in Ethiopia signifies a shift towards a more digital and inclusive financial system. As mobile phone penetration continues to rise and financial institutions embrace innovation, we can expect further expansion of digital payments across the continent.
Stay tuned to TawkCrypto for more insights on the development and evolution of the African fintech landscape.
