EthSwitch and Mastercard have agreed to allow Ethiopia’s national switch operator to connect directly to Mastercard’s network through the Mastercard Interface Point (MIP) and Mastercard’s Global Payment Gateway Services (MPGS). The partnership, signed on Monday at the Sheraton Addis hotel, also includes advisory support from Mastercard to help Ethiopian financial institutions adopt internationally accepted payment solutions.
Under the agreement, Ethiopian banks will be able to issue co-branded prepaid hard-currency cards usable at ATMs, point-of-sale terminals, and online merchants worldwide. Businesses in Ethiopia will also gain the ability to accept international payments, opening new opportunities for cross-border commerce.
“This partnership will take EthSwitch to the international level,” said Yilebes Addis, CEO of EthSwitch. He noted that enabling businesses to accept global payments would provide a major boost to the development of e-commerce in Ethiopia. He also expressed excitement about the potential for locally issued prepaid cards to be accepted globally through Mastercard’s network.
“Through the partnership, any foreign card can be used for payment in Ethiopia,” Yilebes told Shega.
EthSwitch reported a record gross profit of 1.4 billion Birr in the last financial year, a 34% increase from the previous year’s 1.06 billion Birr. Interoperable transaction fees remained the backbone of EthSwitch’s income, with person-to-person (P2P) transactions generating 902.6 million Birr, nearly half (49.9%) of operational revenue and up 123% year-on-year. ATM transactions contributed 825.1 million Birr, or about 45.6% of operational revenue.
No Comment Found.