SantimPay Begins Local Assembly of POS Devices in Ethiopia, Eyes Switch Operator Role

SantimPay Financial Solutions S.C., one of Ethiopia’s premier payment solution providers, has begun assembling Point of Sale (PoS) machines locally at its headquarters in Addis Ababa.

SantimPay executives stated that the plant can assemble up to 3,000 POS machines daily, and they plan to supply more than 23,000 units over the coming months. Tinsae Desalegn, SantimPay’s CEO, expects the widespread adoption of POS machines and other card payment tools to contribute to the creation of a seamless national payment infrastructure.

“There are about 20,000 POS machines in the country, and only a portion are active,” he told Shega.

The CEO attributed part of the low adoption rate to the high cost of importing the machines and licensing the necessary payment software. Tinsae said they have developed the software themselves, which he pointed out significantly cuts the cost of buying a POS machine for financial institutions.

The PoS devices, which are currently integrated with seven domestic banks, will be distributed to registered merchants at no cost. Instead, SantimPay plans to generate revenue through arrangements with financial institutions in a move that may help in addressing Ethiopia’s historically low adoption of card-based payment tools while cutting costs for financial institutions.

“Nigeria has around 3 million POS machines, we have just 20,000,” the CEO underscored.

The company is also eyeing a new strategic partnership with UAE-based fintech firm SanuPay to roll out a credit card and virtual card infrastructure tailored for the Ethiopian market.

The National Bank of Ethiopia issued SantimPay a license to provide financial services as a Payment Gateway Operator and Point of Sale Machine (POS) Operator in July 2022.

Since then, the Company has been expanding its portfolio of services over the past year, venturing into the digital remittance service two months ago and a crowdfunding platform early in the year. During the 2023/24 financial year, the nearly three-year-old payment operator managed to facilitate transactions of around 18 billion Birr.

SantimPay’s entry into switch operations will also require it to obtain a new license under the Licensing and Authorization of Payment System Operators Directive, which mandates a paid-up capital of 40 million Birr for the permit. 

“We have applied for a license and are awaiting approval from the National Bank of Ethiopia,” Tinsae told Shega.

Saturday’s announcement ceremony was attended by several senior government officials, including the Belete Mola, Minister of Technology & Innovation, and Mamo Mihertu, Governor of the National Bank of Ethiopia.

As Ethiopia looks to modernize its payment systems and reduce cash dependency, SantimPay’s foray into local hardware assembly and its global partnerships may signal a broader shift in how financial technology firms operate within the country’s evolving regulatory and economic environment and going beyond software.