Ethiopia is taking a major step in digital finance with the deployment of an interoperable QR code payment standard, a senior official said.
Speaking at a conference in Addis Ababa this weekend, Ahmed Shide, Minister of Finance, said the interoperable QR code payment system helps unify the country's fragmented payment ecosystem and provide transparent, accessible and secure transactions.
Led by EthSwitch, Ethiopia's national payment switch, this initiative aligns with the EMVCo standard, a global framework for secure payment transactions. This standard allows national and international payment systems to operate within a single, streamlined system.
This initiative could not only redefine digital transactions in Ethiopia, but also set a precedent for other emerging markets seeking to bridge the gap between cash-based and digital economies.
Mr. Shide said the interoperable QR code standard aims to revolutionize the way Ethiopians pay for purchases, whether for groceries, utility bills or online purchases, by simplifying the process of payment and eliminating the need for multiple, non-compatible QR systems.
« With a focus on peer-to-peer (P2M) payments, the standard's fundamental goals are clear: increase adoption of digital payments, reduce transaction costs, and create a unified experience across different payment providers and the different types of merchants “, he said.
Limiting the QR code payment ecosystem not only prevents consumers from easily using this payment method, but it also hinders market growth and keeps merchants tied to singular platforms.
The new interoperable standard promises to break down these barriers, paving the way for a more inclusive and scalable digital economy.
MG/lb/Sf/ac/APA
