The growth of digital payments in Ethiopia is fueled by multiple factors. The government’s active promotion of digital payments, as part of its broader modernization and financial inclusion efforts through initiatives like the National Payment System Vision 2025, is a significant driver. The popularity of mobile money services such as M-Pesa and HelloCash has played a crucial role, especially in rural areas where traditional banking services are limited. The COVID-19 pandemic has further accelerated this trend as lockdowns and social distancing measures increased the demand for contactless payment options, pushing businesses and individuals to embrace digital solutions. However, challenges like limited internet connectivity and low smartphone penetration rates need addressing for widespread adoption. Despite these hurdles, the Ethiopian digital payments market is poised for substantial growth, supported by government initiatives and the increasing acceptance of mobile money services.
Popular offline payment methods in Ethiopia
Cash
Mobile Money
Bank Transfers
Cheques
Debit Cards
Money Orders
List of payment methods in Ethiopia
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PayPal and Payoneer, can be used for international transactions in Ethiopia. However, these platforms are not widely used for domestic transactions.
Visa is a widely embraced payment method in Ethiopia, with numerous businesses, including hotels, restaurants, and shops, accepting Visa cards. The country also features a widespread network of ATMs for cash withdrawals by Visa cardholders. Despite its broad acceptance, it’s advisable for travelers, especially in remote areas, to carry some cash as a contingency since Visa may not be universally accepted. Additionally, some businesses may levy an extra fee, usually a small percentage of the transaction, for using a Visa card. Despite these considerations, Visa proves to be a convenient and prevalent means of payment in Ethiopia, facilitating easy transactions and cash access for travelers throughout their stay.
MasterCard is widely accepted in Ethiopia and can be used for both online and offline payments
American Express cards are accepted at some establishments in Ethiopia, although acceptance may be more limited compared to Visa and MasterCard.
Diners Club International cards are accepted at select locations in Ethiopia, but acceptance may be limited.
UnionPay is a widely accepted payment method in Ethiopia. It is accepted at various merchants, including hotels, restaurants, and retail stores. UnionPay cards can also be used to withdraw cash from ATMs in Ethiopia.
To use UnionPay in Ethiopia, you will need to have a UnionPay card issued by a bank that is affiliated with UnionPay. You can check with your bank to see if they offer UnionPay cards.
When making a payment with UnionPay, you will need to insert your card into the card reader and enter your PIN. Some merchants may also require you to provide additional identification, such as a passport or driver’s license.
It is important to note that while UnionPay is widely accepted in Ethiopia, not all merchants may accept it. It is always a good idea to carry some cash as a backup payment method.
CBE Birr is a mobile payment service offered by the Commercial Bank of Ethiopia. It allows users to make payments using their mobile phones.
HelloCash is another mobile payment service available in Ethiopia. It allows users to send and receive money, pay bills, and make purchases using their mobile phones.
Amole is a mobile payment service offered by the Ethiopian Telecommunications Corporation (Ethio Telecom). It allows users to make payments, transfer money, and pay bills using their mobile phones.
Dashen Bank offers a mobile banking service that allows customers to make payments, transfer money, and perform other banking transactions using their mobile phones.
Wegagen Bank also offers a mobile banking service that allows customers to make payments, transfer money, and perform other banking transactions using their mobile phones.
