Yonas Tibebu

Ethiopia’s digital payment ecosystem is entering a new phase. The foundational infrastructure is largely in place, transaction volumes are rising, and mobile-first adoption is accelerating. Yet, one critical question remains: Who will innovate on top of the rails? The answer lies in two powerful enablers: shared services and API standardization . Beyond Infrastructure: The Next Layer of Value National switches are often viewed as transaction processors, moving money from point A to point B. But globally, the most successful payment ecosystems have evolved beyond this role. They have become platforms for innovation . In Ethiopia, EthSwitch has already laid the groundwork through IPS, ETHQR, and other interoperable systems. However, as internal evaluations highlight, technical readiness alone does not guarantee adoption or innovation . To unlock the next wave of growth, the focus must shift from building rails → enabling ecosystems . What Are Shared Services in a National Switch...

Ethiopia’s digital payment ecosystem is evolving at an unprecedented pace. While the past few years have been dominated by interoperability, ensuring that banks, mobile money providers, and fintechs can communicate with one another, the next leap is orchestration : making the entire ecosystem move in harmony. Why Interoperability Isn’t Enough Interoperability lays the groundwork. It ensures that a transaction from Bank A can reach Bank B, or that a mobile wallet can connect to an ATM. But technical readiness alone doesn’t guarantee adoption. As EthSwitch’s internal reports show, having the rails in place is just step one,  real impact comes when these rails are actively used . For instance: IPS volumes have grown to 128 million transactions in FY 2024/25. ETHQR merchant penetration is expanding but unevenly across regions. Bulk payments, E-Mandates, and PISP use cases are technically ready but await activation by member financial institutions. These numbers highlight...