EthSwitch Records ETB 2.6 Billion Profit as Ethiopia’s Digital Payments Ecosystem Expands
Ethiopia’s national payments switch, EthSwitch, has reported a strong financial performance for the 2025/26 fiscal year, recording ETB 2.6 billion in gross profit before tax as digital payment adoption continues to accelerate across the country.
The milestone reflects Ethiopia’s growing shift toward interoperable digital financial services, with more banks, mobile money providers, and financial institutions connecting through shared payment infrastructure to enable faster and more convenient transactions.
During the financial year, EthSwitch processed 387 million interoperable transactions valued at ETB 1.26 trillion across its network. The growth highlights increasing consumer adoption of digital payments and the expanding role of technology in improving financial access across Ethiopia.
Digital Transactions Drive EthSwitch Growth
Person-to-person (P2P) transfers remained the largest contributor to transaction activity, recording 242.6 million transactions worth ETB 1.06 trillion.
ATM interoperability also recorded significant activity, with 131.5 million transactions valued at ETB 189.2 billion. Point-of-sale (POS) payments reached 3.9 million transactions with a total value of ETB 10.7 billion, while ETHQR transactions surpassed 551,000 transactions valued at ETB 6.8 billion.
The figures demonstrate the increasing reliance on digital payment channels as Ethiopia continues efforts to build a more connected financial ecosystem.
Strengthening Ethiopia’s Instant Payment Infrastructure
One of EthSwitch’s major achievements during the year was the successful migration of all person-to-person transfers onto the EthioPay Instant Payment System (IPS).
The move strengthened Ethiopia’s real-time payment capabilities by creating a more efficient and interconnected payments environment for financial institutions and customers.
AfricaNenda recognised EthioPay IPS as a matured instant payment system during the reporting period, highlighting the progress Ethiopia has made in developing digital financial infrastructure.
The platform also achieved a major operational milestone by processing more than one million P2P transactions in a single day, representing ETB 5.1 billion in transaction value.
New Strategy to Support Future Growth
To guide its next phase of expansion, EthSwitch launched a new five-year strategic plan covering 2026/27 to 2030/31.
The strategy focuses on expanding digital payment adoption, improving interoperability among financial service providers, and supporting Ethiopia’s broader digital transformation goals.
EthSwitch also introduced the EthioPay brand and hosted the Ethiopian Digital Payment Conference 2.0, bringing together policymakers, regulators, financial institutions, and technology leaders to discuss the future of digital payments in the country.
The conference was opened by Deputy Prime Minister Temesgen Tiruneh and the Governor of the National Bank of Ethiopia, Eyob Tekalign, highlighting the importance of digital payments in Ethiopia’s economic development strategy.
Supporting Financial Inclusion and Innovation
EthSwitch also organised a CEO-level executive workshop in partnership with Glenbrook Partners to encourage collaboration among financial sector leaders and accelerate adoption of instant payment solutions.
The company’s achievements received international recognition when it was awarded Best Financial Inclusion Technology Initiative in Africa at the TAB Global Business Achievement Awards in Kuala Lumpur, Malaysia.
As Ethiopia continues expanding its digital economy, EthSwitch remains a key player in connecting banks, microfinance institutions, mobile money operators, and payment service providers through a shared national payment infrastructure.
With a population exceeding 130 million people, Ethiopia represents one of Africa’s largest emerging digital finance markets. EthSwitch’s continued expansion is expected to support greater financial inclusion, improve payment efficiency, and strengthen the foundation for a more connected digital economy.
Frequently Asked Questions (FAQs)
1. What is EthSwitch?
EthSwitch is Ethiopia’s national payment switch responsible for connecting banks, financial institutions, mobile money providers, and payment service providers through a shared digital payment infrastructure.
2. How much profit did EthSwitch record in 2025/26?
EthSwitch recorded ETB 2.6 billion in gross profit before tax during the 2025/26 financial year.
3. How many digital transactions did EthSwitch process?
EthSwitch processed 387 million interoperable transactions with a total value of ETB 1.26 trillion during the financial year.
4. What is EthioPay Instant Payment System (IPS)?
EthioPay IPS is Ethiopia’s national instant payment platform that enables real-time digital transactions between participating financial institutions.
5. How does EthSwitch support financial inclusion in Ethiopia?
By connecting different financial service providers, EthSwitch makes it easier for more people and businesses to access digital payment services, including those who may not have traditional banking access.
6. What are the main types of transactions processed through EthSwitch?
The major transaction categories include person-to-person transfers, ATM transactions, point-of-sale payments, and ETHQR digital payments.
7. What is the future plan for EthSwitch?
EthSwitch plans to expand digital payment adoption, strengthen interoperability, and support Ethiopia’s transition toward a more inclusive and connected digital economy through its five-year strategic plan.
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