Ethswitch S.C., Ethiopia’s national payment switch operator, has announced a landmark achievement in the country’s digital payment landscape. For the first time, person-to-person (P2P) interoperable transactions exceeded ATM withdrawals in volume during October 2024, signaling a major step towards a cashless, digitally driven economy.
In its Annual Report for the fiscal year ending June 30, 2025, Ethswitch revealed it processed a record 287.4 million interoperable transactions valued at Birr 741.1 billion ($12.8 billion), a significant increase compared to previous years. The surge in digital payments reflects the rapid embrace of financial technology across the nation.
Yilebes Addis, Ethswitch CEO, described this milestone as not only a success for Ethswitch but a reflection of Ethiopia’s broader economic transition. “This shows the country moving towards a cash-friendly and digitalized economy, powered by interoperable digital payments,” he said.
Among the transaction types, P2P payments led the growth with 128.3 million transactions—an impressive 158% increase year-on-year—and a total value of Birr 577.7 billion. This growth marked P2P payments as the largest contributor to Ethswitch’s operating revenue, generating Birr 902.6 million or nearly 50% of total operating income.
ATM withdrawals followed with 119.3 million transactions worth Birr 156.1 billion, up 26% from the prior year. Point-of-sale (POS) transactions also increased by 27%, totaling 2.78 million transactions valued at Birr 7.2 billion, underscoring greater adoption of digital payment methods at retail outlets.
Financially, Ethswitch posted total revenue of Birr 2.2 billion, reflecting a robust 49% growth over the previous year. The company’s net income before tax rose 34% to Birr 1.4 billion, supported by prudent management despite rising operational costs. Ethswitch’s total assets reached Birr 4.9 billion, marking a 41% increase from last year, while paid-up capital expanded to Birr 2.99 billion, underscoring strong shareholder confidence.
Solomon Desta, Ethswitch Board Chairman and Vice Governor of the National Bank of Ethiopia, expressed optimism at the company’s sustained growth and expanding role in Ethiopia’s financial ecosystem. He highlighted Ethswitch’s recent acquisition of a new 12-storey headquarters in Addis Ababa’s Kazanchis district as a symbol of the firm’s commitment to innovation and service excellence.
Ethswitch has also advanced its technology infrastructure by relocating services to a Tier III equivalent data center housed at Zemen Bank’s headquarters. This move enhances operational reliability, security, and scalability without disrupting service.
The company continues to pioneer digital payment innovation, implementing new features such as Green PIN—a secure ATM PIN management system—and cardless cash withdrawals. Development of the Instant Payment System, enabling interoperable QR payments and “Request to Pay” functionality, is underway. Additionally, a pilot shared-wallet system is being tested to streamline transactions across various banks and mobile platforms.
Ethswitch remains centrally positioned in Ethiopia’s digital financial transformation, driving interoperability between banks, microfinance institutions, and mobile money providers. Its integration of Ethiopia’s national digital ID system, “Fayda”, aims to streamline customer identification and expand financial inclusion nationwide.
Despite the promising growth, Ethswitch faces challenges from rising operational expenses and currency volatility, factors that will require ongoing strategic attention to sustain profitability and service quality.
Overall, Ethswitch’s 2024/25 fiscal year performances mark a milestone in Ethiopia’s journey towards a cashless economy, positioning it as a leader in digital payment infrastructure in Africa.
