Ethiopia Mandates Standard QR Code for Digital Payments

The National Bank of Ethiopia (NBE) has mandated that all payment service providers adopt the Standard for Interoperable QR Code Payments, effective December 1, 2024. The requirement seeks to standardize the currently varied payment QR codes, ensuring that all providers issue codes in compliance with the National Bank’s guidelines.

Ethiopia officially launched its interoperable QR payment standard in April of this year at the first Ethiopian Digital Payments Conference. Developed by the national switch operator EthSwitch and owned by the NBE, the national QR standard leverages a standardized format, enabling QR codes to function seamlessly with any participating payment app.

Within the mobile payment landscape, interoperable QR codes represent a significant advancement. Unlike traditional QR codes, which are often restricted to a single payment application or financial institution, interoperable codes offer a more versatile solution. Merchants will only need to display one QR code to accept payments from any participating bank or financial provider.

The push for standardized QR codes comes as part of a broader e ffort to enhance the country’s digital payment ecosystem, which has seen substantial growth, especially after the adoption of the National Digital Payment Strategy (2021-2024).

According to the central bank, in the fiscal year 2023/24 alone, Ethiopia's digital payment system processed over 2.7 billion transactions, totaling more than 9.7 trillion birr. The number of digital payment accounts, including mobile banking, mobile money, internet banking, and debit cards, has also risen to over 198 million.

EthSwitch will be instrumental in enabling QR code interoperability by managing the necessary infrastructure under the National Bank's supervision. The national switch operator previously enabled the interoperability of ATMs, Pos terminals, digital wallets, mobile, and Internet banking systems.