Digital Payment Surge Fuels Ethiopia's Fintech Ambitions

Arabian Post

a day ago

Ethiopia's financial sector has entered a decisive phase as Nib International Bank and Arifpay Financial Technologies formally join forces to upscale the nation's digital payment infrastructure. With card acceptance, a merchant‑centric app and payment gateway on the launchpad, the alliance aims to expand financial inclusion, support small and medium enterprises and attract foreign currency inflows.
Nib International Bank, the country's sixth‑largest private lender, brings to the table its extensive branch network and newly launched digital platforms—Nib Amber Pay and Paystream introduced earlier in 2025. Arifpay, recognised locally for its fintech innovation, contributes cutting‑edge mobile POS solutions and a real‑time payments gateway.
Under the deal unveiled on 21 June, businesses will gain access to smart POS terminals accepting Visa, Mastercard and UnionPay—a boost for merchants serving international clients and formalising previously cash‑only operations. A digital payment gateway will support online platforms and comes bundled with a free e‑commerce interface, enhancing ease of entry for SMEs into the digital marketplace.
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The partners are also rolling out a merchant app with analytics functionality. The tool enables vendors to oversee daily transactions, analyse customer behaviour, and optimise cash flows in real time—tools that are critical to small business competitiveness.
Henok Kebede, chief executive officer of Nib Bank, framed the alliance as a direct step toward modernising bank services: 'Combining our infrastructure with Arifpay's technology, we are positioned to deliver practical, customer‑focused solutions that support business growth and financial inclusion'. Arifpay CEO Rediet Tsigeberhan expressed a similar sentiment, labelling the scheme a vehicle for scaling fintech innovation beyond Ethiopia's major urban centres.
Economic analysts note the timing aligns with Ethiopia's drive to diversify revenue sources and attract foreign exchange—especially from tourism and diaspora remittances. Upgrading merchant payment systems plays a strategic role in formalising transactions and improving foreign currency reporting.
Arifpay's local prominence and Nib Bank's infrastructure reinforce the partnership's potential to deepen reach across Ethiopia's varied economic zones, including rural areas underserved by traditional banking networks.
Since its founding in 1999 and with a network spanning 48 branches, Nib Bank has demonstrated steady digital evolution. In December 2024 it launched a prepaid Mastercard; its digital wallet initiatives earlier this year laid the groundwork for the current integration. Arifpay's backend architecture and developer reach, meanwhile, have been steadily refined to cater to merchant-focused platforms.
This initiative follows broader trends across sub‑Saharan Africa, where banks and fintechs are increasingly uniting to drive digital financial services. Expert commentary suggests that scalable POS systems and simplified merchant onboarding can significantly accelerate financial inclusion goals, lifting transactional transparency and reducing the informal cash economy.
Ethiopia's banking regulator and fintech stakeholders have been advocating interoperability and infrastructure standardisation. The 'Super Merchant' construct under this partnership allows Nib to integrate Arifpay's systems directly into its banking apps, reducing friction in merchant onboarding and service adoption.
Early-adopter SMEs are expected to benefit from the capability to execute payments, monitor sales and retrieve transaction data via mobile. For many micro‑enterprises, these tools have been out of reach until now, due to cost barriers or lack of technological support.
The partnership also places Ethiopia's digital transformation in a comparative regional context. While neighbouring economies deploy mobile money and agent‑banking models at scale, Ethiopia has lagged in digital merchant payments. This move could narrow that gap, promoting cross‑border commercial integration and enhancing transparency in remittance flows—critical for macroeconomic stability.
As implementation begins, attention will centre on deployment speed, merchant uptake rates and the scalability of under‑resourced rural distribution channels. Stakeholders will monitor whether this model prompts competitor banks to follow suit, potentially engendering a widespread digital payments landscape.
The collaboration marks a notable evolution from Ethiopia's earlier cautious digital banking approach. With bank regulation evolving and fintechs demonstrating local relevance, both incumbents and disruptors are now positioning themselves to lead in areas that directly affect economic activity and inclusion.