In the rapidly evolving landscape of digital finance, few individuals stand out as prominently as Bruke Gebreyes. As the Co-Founder and CEO of Addispay Financial Technology S.C., Bruke is at the forefront of driving financial inclusion and technological advancement in Ethiopia. With extensive experience in digital finance leadership, consulting on national initiatives, and a strong focus on business transformation, he is reshaping how financial services are delivered in a country where traditional banking remains a challenge for many.
In this interview with Capital, Bruke shares his insights on the role of fintech solutions in addressing banking penetration and cash dependency, the regulatory hurdles faced by startups, and how Addispay is leveraging innovative technologies to create a more inclusive financial ecosystem. Join us as we explore his vision for the future of digital finance in Ethiopia. Excerpts;
Capital: How do you see fintech solutions like Soft POS and digital wallets addressing challenges like low banking penetration and cash dependency?
Bruke: Addispay plays a crucial role in supporting digital wallets to address low banking penetration and cash dependency, ensuring financial inclusion for underserved communities.
Expanding access beyond traditional banking is key. With only 25% of Ethiopia’s population having access to formal banking, digital wallets provide an alternative for individuals and businesses to store, send, and receive money without needing a bank account. Addispay integrates with popular mobile wallets to enable seamless transactions, ensuring users can access financial services regardless of their banking status.
Cash remains the dominant payment method in Ethiopia, but digital wallets help transition users toward cashless transactions. Addispay facilitates merchant payments, bill settlements reducing reliance on physical cash while improving security and efficiency in financial interactions.
Since nearly 70% of Ethiopia’s population experiences low-bandwidth connectivity, Addispay’s lightweight infrastructure ensures fast, low-data transactions, allowing users in remote areas to access financial services without disruptions.
For merchants, Addispay enables them to accept digital wallet payments through ussd transactions, with the best settlements process, and invoice tracking. This ensures businesses can operate efficiently, reducing cash handling risks while expanding financial inclusion for customers.
By integrating secure, scalable, and accessible fintech solutions, Addispay is driving financial inclusion and digital transformation across Ethiopia.
Cpaital: What key regulatory hurdles do fintech startups face in Ethiopia, and how would you ensure compliance while innovating?
Bruke: Navigating regulatory challenges requires expertise and a strategic approach. Regulatory hurdles, such as strict licensing and compliance requirements, play an important role in protecting consumers, ensuring fair competition, and maintaining financial stability. Rather than seeing these regulations as obstacles, Addispay sees them as an opportunity to build trust and enhance financial security.
Dedicated compliance and advisory teams ensure seamless operations, led by highly qualified experts who work closely with the National Bank of Ethiopia to meet regulatory standards. These teams handle complex compliance frameworks and ensure financial regulations are fully met.
A proactive approach allows Addispay to engage with policymakers and financial authorities, helping to anticipate regulatory shifts, adapt quickly, and implement fintech solutions without disruptions.
Internal compliance frameworks include automated risk assessments, AI-driven fraud detection, and secure data governance. These measures ensure the platform remains compliant, fostering trust among users, financial institutions, and regulators. By combining expert-led regulatory navigation, proactive engagement, and advanced compliance strategies, Addispay supports responsible fintech innovation in Ethiopia.
Capital: How would you design a fraud-resistant payment gateway integrating NBE’s requirements?
Bruke: Addispay has deployed a rule-based and machine learning-powered fraud detection system, designed to ensure a secure and resilient payment environment. This system operates within a daily monitoring framework, continuously analyzing transactions to identify and mitigate potential threats in real time. Aligned with the National Bank of Ethiopia (NBE) guidelines, our approach strengthens financial security while fostering trust and transparency in digital transactions.
Captial: How would you optimize Addispay’s platform for low-bandwidth environments?
Bruke: At Addispay, we prioritize reliable, high-performance financial technology that operates seamlessly within Ethiopia’s evolving internet landscape. Recognizing that connectivity issues affect nearly 70% of the population, we have developed an optimized cloud-native system that ensures speed, security, and accessibility across various digital finance services.
Cloud-Native Infrastructure & gRPC Protocol; Our scalable architecture enhances processing efficiency, enabling real-time financial transactions without excessive data usage. By utilizing the gRPC protocol, we facilitate fast, low-latency communications, ensuring smooth integration across banking platforms, mobile wallets, and merchant payment networks.
Optimized for Low-Bandwidth Users : Considering Ethiopia’s network constraints, Addispay’s system is lightweight, designed for minimal data consumption while maintaining high-speed functionality. This approach ensures financial inclusion for merchants and users in regions where internet reliability fluctuates.
Security-First Approach in Fintech: Security remains at the forefront of our technology framework. With advanced encryption, AI-driven fraud prevention, and multi-layer authentication protocols, Addispay safeguards financial transactions while adhering to strict data protection measures.
By integrating cutting-edge infrastructure, we are driving trust, accessibility, and efficiency in Ethiopia’s fintech sector, ensuring seamless digital finance solutions for businesses and individuals.
Capital: How would you design a campaign to build trust in Addispay’s platform?
Bruke: Building trust in Addispay’s platform requires a multi-faceted approach that directly addresses user concerns and misconceptions about digital payments. Our campaign will focus on education, transparency, and community engagement to instill confidence in the platform.
Key pillar of our campaign will be educating users about the security measures in place to protect their transactions. Studies show that lack of trust is one of the biggest barriers to adopting digital financial services. Research indicates that trust is the most cited motivator for adoption, yet skepticism remains high due to concerns about fraud and data security To counter this, we will launch interactive workshops, webinars, and explainer videos that break down encryption, fraud prevention, and user protection policies in simple terms.
Users need proof that their money and data are safe. We will highlight Addispay’s security protocols, such as two-factor authentication and fraud detection systems, through real-life success stories** from satisfied customers. According to global reports, financial services have seen steep trust losses, with some countries experiencing double-digit declines in trust. By showcasing positive experiences, we can counteract this trend and reassure potential users.
Influencers and community leaders play a crucial role in shaping public perception. Given that 70% of users express distrust in digital payments, we will collaborate with **trusted Ethiopian influencers** to share their experiences using Addispay. Additionally, we will organize **local events** where users can interact with Addispay representatives, ask questions, and receive hands-on guidance. By combining education, transparency, and community-driven advocacy, our campaign will bridge the trust gap and encourage wider adoption of Addispay’s platform.
Capitlal: What’s your strategy to differentiate Addispay’s Soft POS solution?
Bruke: We can’t explain or communicate about the softPos before finishing the piloting phase and receive the commercialization letter from nbe, this is the rule we have fo follow. Unless we can comply and accept the certificate its prohibited.
Capital: How could Addispay leverage alternative data to offer microloans?
Bruke: Fintech companies like Addispay are revolutionizing lending services by leveraging alternative data to assess creditworthiness and facilitating loans using invoices as collateral. This approach makes micro-lending more accessible, especially for small merchants and businesses that lack traditional financial records. Here’s how Addispay improves the lending process:
Alternative Data for Credit Assessment, Traditional banks rely on credit scores and formal financial statements, which many merchants lack. Addispay integrates non-traditional data sources, such as:
– Transaction history – Payment behavior, sales volume, and cash flow trends.
– Mobile usage insights – Data from telecom activity, bill payments, and digital wallets.
– Supplier & customer interactions – Frequency of purchases and vendor relationships.
By analyzing these data points, Addispay provides a more accurate credit profile for merchants, allowing banks to make informed lending decisions without requiring conventional credit history.
Invoice-Based Collateral for Microloans, One of the biggest barriers for small businesses is lack of physical collateral. Addispay enables banks to use merchant invoices and receivables as security for loans, ensuring:
– Verified revenue streams – Banks assess loan eligibility based on invoices, proving actual business activity.
– Risk optimization – Instead of relying solely on assets like land or machinery, lenders can reduce risk by funding merchants based on projected receivables.
– Improved cash flow management – Merchants can access short-term loans immediately, reinvesting funds in operations rather than waiting for invoice payments.
Trust is critical in digital lending. Addispay ensures strict privacy safeguards when collecting alternative data, maintaining transparency and compliance with regulations.
– Merchants provide explicit consent before sharing invoice records with financial institutions.
– Encryption protocols protect sensitive transaction data, ensuring no unauthorized access.
– A secure data-sharing system prevents financial fraud and enhances accountability.
By bridging the gap between merchants and lenders, Addispay fosters economic growth by:
– Offering faster loan approvals with real-time data verification.
– Enabling small business expansion without reliance on traditional collateral models.
– Strengthening trust in digital lending, increasing adoption rates among merchants hesitant about financial services.
The combination of alternative credit scoring, invoice-backed lending, and secure data sharing makes Addispay an invaluable tool for transforming micro-financing in Ethiopia, ensuring that more businesses can access credit efficiently and scale their operations.
Capital: Why join Addispay over established players, and how will you adapt to rapid changes?
Bruke: At Addispay, agility is at the core of our team’s success. We don’t just hire talent we develop expertise from within, ensuring our team remains adaptive, forward-thinking, and innovation-driven.
Our lean, high-impact structure allows us to pivot swiftly in response to market changes, regulatory shifts, and technological advancements. By embedding continuous learning, we build a team that anticipates industry disruptions rather than reacts to them. Instead of rigid hierarchies, we foster cross-functional collaboration, empowering employees to take initiative, iterate quickly, and execute efficiently.
This dynamic approach ensures Addispay stays ahead of competitors, delivering scalable, secure, and future-ready financial solutions tailored to Ethiopia’s evolving fintech landscape.
Capital: How will Addispay ensure compliance with new interoperability requirements?
Bruke: We will implement a compliance framework with ongoing audits and collaboration with the NBE, turning interoperability challenges into opportunities for enhanced service delivery.
