NBE mandates adoption of digital payment QR code standards for all payment service providers

Addis Ababa, November 7, 2024 (FBC) – The National Bank of Ethiopia (NBE) announced that it has mandated the adoption of Digital Payment QR code standards for all payment service providers, effective December 1, 2024.

The central bank indicated that this initiative aims to unify the diverse payment QR codes currently in circulation, ensuring that all providers issue their payment QR codes according to the standards set forth by the National Bank.

This initiative is being implemented in a context of a rapidly evolving digital payment landscape of the country, NBE noted in a press release issued today. Due to a robust regulatory framework and purposeful implementation of the National Digital Payment Strategy (2021-2024) by the National Bank of Ethiopia, the digital payment ecosystem in Ethiopia has experienced remarkable growth and transformation.

In the fiscal year 2023/24 alone, the Ethiopian digital payment system processed a staggering volume of over 2.7 billion transactions, accumulating a total value that surpasses 9.7 trillion birr. The surge in digital payment accounts—including popular methods such as mobile banking, mobile money, internet banking, and debit cards—has reached a total of more than 198 million accounts, indicating a clear and an irreversible shift towards cashless transactions.

The introduction of the Digital Payment QR Code standard is set to further transform merchant payments and transactions across the country.

According to NBE, the standard is designed to promote merchant payments through secure, interoperable, and consistent QR code transactions. This initiative is expected to increase the accessibility of the existing digital payment ecosystem, provide a seamless and interoperable payment experience for users and merchants, enhance the security and efficiency of settlements among a variety of stakeholders, foster an environment that supports and encourages digital merchant payments, and ultimately drive economic growth.

The National Bank of Ethiopia will oversee these standardized QR code regulations, ensuring that all providers adhere to these new standards. Meanwhile. the National Switch. EthSwitch, will play a crucial role in operating the underlying infrastructure necessary for enabling QR code interoperability, under the supervision of the National Bank of Ethiopia. This collaborative effort aims to position Ethiopia at the forefront of digital payment innovation in the region.

The Digital QR code standard and its scheme rule can be accessed from the National Bank of Ethiopia’s website nbe.gov.et/QRCode.