Stanchion Payments Solutions Explores Ethiopia’s Digitalisation Journey
By Norman Frankel, Chief Growth Officer, Stanchion Payments Solutions (Norman Frankel | LinkedIn)
Addis Ababa, the bustling capital of Ethiopia, is at the forefront of digital transformation. With a population of over 5.7 million, the city is rapidly evolving to meet the government’s ambitious digitalisation plans for 2025 and 2030. Ethiopia, as a country, boasts a population of at least 132 million, making it the 10th most populous nation globally and the second most populous in Africa after Nigeria.
During a recent visit to Addis Ababa, the city exceeded expectations with its vibrant energy and ambitious infrastructure projects. Major banks have relocated to modern skyscraper-like buildings, signaling a shift towards a more sophisticated financial landscape.
Stanchion Payments Solutions partnered with local in-country partner Savvy Information Technologies to host seminars on driving digital experiences for both issuing and acquiring. The company also sponsored the Digibank event, where they discussed hyper-personalised experiences for bank card issuers and Ethiopia’s digital payments journey.
The rapid progress in Addis Ababa is evident, with completed infrastructure projects reducing travel times and enhancing the city’s aesthetics. The government’s 2030 vision includes significant investment projects across various sectors, positioning Addis Ababa as a hub for innovation and development. Recent economic changes, such as the devaluation of the local currency and new laws allowing foreign investment, present both opportunities and challenges for the banking sector.
In the midst of these changes, the payments industry in Ethiopia is eager to innovate and digitise. Local mobile money schemes and domestic payment solutions are gaining traction, with the introduction of contactless cards on the horizon. However, challenges such as the lack of support for domestic standards in digital wallets and the need for on-premise solutions present obstacles for banks and payment switches.
To address these challenges, banks are exploring alternative solutions such as issuing debit cards from international schemes like Visa and Mastercard. The potential adoption of future open standards like C-8 and the strategic rollout of virtual card issuance could drive further growth and innovation in the market.
As Ethiopia navigates its digital transformation journey, collaborations with international vendors like Stanchion Payments Solutions can provide valuable expertise and solutions to address emerging challenges. From enhancing security measures to improving transaction monitoring and fraud management, there is a growing need for advanced technologies to support the evolving payment landscape.
Stanchion Payments Solutions remains committed to supporting Ethiopia’s digitalisation efforts and looks forward to continued collaboration with local banks and industry stakeholders. With a focus on payment integration capabilities and innovative solutions, Stanchion is poised to empower banks in Ethiopia to achieve their digital goals and deliver exceptional customer experiences.
About Stanchion Payments
Stanchion Payments is a global fintech solution provider with a focus on creating Payment Fabric technology and driving payment change. With a presence in multiple countries, including South Africa, Australia, the UK, the UAE, and the US, Stanchion offers advanced payment solutions to facilitate modernisation, transformation, and innovation in the payment industry.
