Awash Bank has become the first Bank in Ethiopia to issue credit cards. The news which was released today at SkyLight Hotel will see Ethiopia’s biggest private Bank extend a line of credit for its 9 million customers.
Speaking at the ceremony, the CEO of the bank, Tsehay Shiferaw, noted that Awash Bank is working to make its service delivery accessible, and comfortable.
As opposed to debit cards, payment card that makes payments by deducting money directly from a consumer’s checking account, a credit card is a card issued by a financial institution, typically a bank, and it enables the cardholder to borrow funds from that institution. Cardholders agree to pay the money back with interest, according to the institution’s terms.
According to officials at the bank, the credit card service has various products designed for the needs of customers from small businesses to corporations and is already being issued.
The news comes in the same week the bank made a landmark decision in which it passed almost a unanimous decision to raise its capital to one billion USD (55 billion birr), making it the most capitalized bank in Ethiopia.
Awash Bank has around 3 million debit card holders.