The National Bank of Ethiopia (NBE) requires all payment service providers to adopt a standardized digital payment QR code by December 1, 2024. This initiative aims to unify the various QR codes currently in use. It will simplify transactions and enhance the digital payment landscape in Ethiopia.
In the fiscal year 2023/24, Ethiopia processed over 2.7 billion transactions, totalling more than 9.7 trillion birr. With 198 million digital payment accounts, including mobile banking and mobile money.
However, the lack of consistent QR code standards has created challenges. Customers often struggle to make payments across different platforms due to incompatible codes. The new standard will address these issues by ensuring all providers follow the same protocols.
The Digital Payment QR code standard will bring several advantages:
- Customers can scan and pay at any merchant using their preferred payment app.
- The standard includes advanced security measures to protect against fraud.
- Streamlined transactions will reduce wait times and improve customer experiences.
- More merchants will adopt digital payments, expanding access to financial services.
The National Bank of Ethiopia will oversee compliance with these regulations. EthSwitch, the national switch operator, will provide the infrastructure needed for QR code interoperability.
This initiative aims to drive economic growth in Ethiopia. The government expects increased economic activity by creating a supportive environment for digital merchant payments. More consumers using digital financial services can significantly impact local businesses.
Additionally, as Ethiopia expands its digital financial ecosystem through services like Telebirr and CBE Birr, standardized QR codes will support economic inclusion efforts.
For more information on the Digital Payment QR code standards, visit the website of NBE.
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