EthSwitch Sees P2P Transactions Overtake ATMs in Value

EthSwitch, the national switch operator responsible for financial interoperability, has reported that interoperable peer-to-peer (P2P) transactions have surpassed those of ATMs in value. 

During its general assembly meeting held at Hilton Addis Hotel on Tuesday, the operator disclosed that interoperable P2P transfers in the 2023/24 fiscal year reached 49.69 million transactions, totaling 270.7 billion birr—a substantial 251% increase from the prior year. These P2P services include account-to-account, account-to-wallet, wallet-to-wallet, and wallet-to-account transfers.

Although ATM transactions maintained a higher volume at 94.5 million, their total value reached 123.2 billion birr, trailing behind P2P transfers. Meanwhile, point-of-sale (POS) transactions recorded by EthSwitch stood at 2.1 million, worth 5.7 billion birr, marking a 125% year-over-year increase.

Board Chairman Solomon Desta described the year as successful despite economic and legal challenges. The Vice Governor of the National Bank of Ethiopia also highlighted ongoing disputes with tax authorities that have resulted in court proceedings as a notable hurdle.

Despite these challenges, EthSwitch achieved growth on multiple fronts, increasing its total assets to 3.45 billion birr and earning a net profit of 789 million birr, with revenues rising by 86% to 1.13 billion birr.

The Share Company's CEO Yilebes Addis underscored the importance of ensuring low transaction fees to induce adoption of digital financial services nationwide. " Our very foundation has to do with expanding financial inclusion," he told Shega .