The National Bank of Ethiopia (NBE) officially launched EthioPay-IPS in December 2025, establishing the country's first interoperable instant payment system. The platform went live with 15 participating banks, including the Commercial Bank of Ethiopia, Dashen Bank, and Awash Bank.
System Architecture
EthioPay-IPS enables real-time account-to-account transfers between participating banks using mobile numbers as payment proxies. The system was developed with technical assistance from the Bill & Melinda Gates Foundation's Mojaloop initiative and runs on ISO 20022 messaging standards from launch.
Financial Inclusion Target
Ethiopia's 120 million population is one of Africa's largest unbanked markets, with formal financial account ownership estimated at approximately 45%. EthioPay-IPS is designed to work with both traditional bank accounts and mobile money wallets, bridging the gap between bank-led and telecom-led payment ecosystems.
Telecom Liberalization Context
The launch coincides with Ethiopia's gradual telecom liberalization. Safaricom's Ethiopian subsidiary (with M-Pesa) and Ethio Telecom's telebirr mobile money service are expected to integrate with EthioPay-IPS, potentially creating interoperability between the country's two leading mobile money platforms.
What This Means
Ethiopia was one of the last major African economies without a national instant payment system. The ISO 20022-native design and Mojaloop foundation position EthioPay-IPS for future cross-border connectivity with PAPSS and East African payment corridors. Success depends on achieving interoperability between bank and mobile money accounts.