National Bank of Ethiopia to Enforce Interoperable QR Code Standard for Payments Starting December

The National Bank of Ethiopia (NBE) has announced that, effective December 1, 2024, all payment service providers must adopt the national standard for interoperable QR code payments. This mandate aims to unify the diverse range of payment QR codes, requiring providers to issue codes that align with NBE guidelines.

The interoperable QR code standard, officially introduced in April 2024 at the Ethiopian Digital Payments Conference, was developed by EthSwitch, Ethiopia's national switch operator, and is managed under the NBE’s authority. This standardized format enables QR codes to work seamlessly across multiple payment platforms, allowing customers to pay from any participating app, regardless of the merchant’s bank or payment provider.

Interoperable QR codes mark a major shift in Ethiopia's mobile payment space. Traditional QR codes are typically tied to a single payment platform, limiting merchant options and customer convenience. With the new standard, merchants will only need one QR code to accept payments from any connected bank or financial service.

This initiative aligns with Ethiopia’s ongoing National Digital Payment Strategy (2021-2024), which has spurred growth in the digital payment sector. In the 2023/24 fiscal year alone, over 2.7 billion transactions were processed, amounting to 9.7 trillion birr. Digital payment accounts, encompassing mobile banking, mobile money, internet banking, and debit cards, have also expanded, totaling more than 198 million.

EthSwitch is set to play a critical role in supporting QR code interoperability, building on its experience managing the infrastructure for interoperable ATMs, POS terminals, digital wallets, and banking systems across Ethiopia, under the supervision of the NBE.

West Arekahme