MasterCard has entered into a Memorandum of Understanding (MoU) with EthSwitch, the national payment switch of Ethiopia, to facilitate the implementation and widespread adoption of digital payment services by financial institutions throughout the country.
According to a statement released in April 2023, MasterCard said the partnership shall enable EthSwitch to further expand the accessibility and availability of digital money transfers by utilizing MasterCard Send, a platform that enables instantaneous domestic and cross-border money transfers.
The platform is designed to enhance user experience which in turn will play a significant role in promoting the adoption of digital payments and the transition towards a cashless economy in Ethiopia.
“Ethiopia is quickly moving into the digital economy and EthSwitch is striving to achieve its strategic goals, which substantially contributes for the success of Digital Ethiopia 2025, National Digital Payments Strategy and National Financial Inclusion Strategies,” says Yilebes Addis, Chief Executive Officer at EthSwitch.
“It is critical that we advance Ethiopia’s financial system to support the economy with an improved flow of remittances in the country. Our partnership with Mastercard is a significant step as we embrace the continued modernization of the national payments system and enhance financial inclusion in the country.”
In collaboration with EthSwitch, MasterCard intends to introduce a mobile phone application that will facilitate the transfer of funds, ultimately displacing traditional brick-and-mortar transfers as consumers increasingly seek convenient and contactless payment options. Customers are expected to benefit from fast payout capabilities, secure transactions, and the ability to send and receive funds at any time, thereby enhancing the overall user experience of digital payments.
Moreover, Mastercard will offer expert advice and technical assistance to help advance EthSwitch’s digital-first strategy, in line with both local and global best practices. EthSwitch will capitalize on Mastercard’s technology, expertise, partnerships, and cybersecurity solutions to expand its payment capabilities beyond person-to-person transfers.
“Mastercard recognizes that consumers today are looking for simple and secure financial products that add more value to their daily lives. Our partnership with EthSwitch supports our endeavor to facilitate digital remittances in this country, therefore bringing financial inclusion to the millions of Ethiopians who need it,” says Dimitrios Dosis, President of Eastern Europe, Middle East and Africa at Mastercard.
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