Is there uncertainty behind Ethiopia’s payment gateway space?
Ethiopia’s payment gateway space is growing fast. Over recent years, the number of licensed Payment System Operators has increased significantly. Established platforms like EthSwitch and Premier Switch now share space with newer entrants. These include Chapa, SantimPay, AddisPay, and YagoutPay, among others.
In fact, Ethiopia has licensed around 20+ payment systems and gateway operators, according to the National Bank of Ethiopia, though several remain in pilot phases.
At first glance, this growth appears impressive and encouraging. Digital payments continue to expand across the country. More companies are entering the ecosystem each year. The sector is building strong momentum.
Growth on paper, gaps in reality
However, a deeper look reveals underlying concerns about accessibility and visibility. Not all licensed operators appear equally active or reachable in the market.
Abenezer Zewedu, Founder of RVTTechnologie shared his concerns on the same, “When I looked deeper… something surprising came up. Out of those 21 operators, I couldn’t even find logos or a clear online presence for at least 5 of them. That raises a real question: Are we building real, accessible infrastructure or just adding names to a list? Now, speaking as a young builder trying actually to use these systems — the reality feels different.”
This observation highlights a disconnect between licensing growth and practical usability. A growing list of operators does not automatically translate into functional infrastructure. Visibility and developer access remain critical gaps.
Profitability questions emerge
The rapid evolution of financial services in Ethiopia is also reshaping the role of gateways. Banks are increasingly opening their own APIs to developers and businesses. Telebirr already supports direct integrations for merchants and platforms.
This raises an important question about long-term positioning. Where do third-party payment gateways fit within this changing ecosystem? Their traditional role as intermediaries may face pressure. For many, the answer lies in simplifying complex integrations. However, current experiences suggest that this promise is not always fulfilled.
Integration remains a barrier
However, in practice, it is difficult to connect with payment systems in Ethiopia. Bank APIs are complex and require technical knowledge, and integrating with Telebirr takes time and an organized process. The payment gateway offers a simpler path for developers and companies, providing its main benefit in any digital economy. However, access to the payment gateway is not always available to many interested parties. For example, developers need a business license and an office to operate from.
“For many young builders like me, this is where the journey stops before it even begins. And that leads to the biggest missed opportunity. If these payment gateways opened access to startups and small developers. Young builders like me are trying to build something real,” Abenezer says.
This limitation reduces the number of active builders within the ecosystem. It also slows innovation and product development across the market.
Alternative models show promise
Despite these challenges, some companies are demonstrating different approaches to integration. Simon Pepper, Chief Product Officer at Tola Mobile, shared insight into their model.
He says Tola has undertaken integration with the Mobile Money suppliers in Ethiopia, namely TeleBirr and Safaricom mPesa. We have been working with TeleBirr for the last 3 years, prior to their acquisition by EthioTelecom.
“Tola does not collect or hold any merchant funds, at any time, through our Direct Settlement model. The merchant retains control of their funds through accounts with the network operators, but without the overhead of undertaking and maintaining connectivity and integration with these operators. This is a major cost-saving capability for any merchant, but without sacrificing and giving up control of their funds, which ultimately is a business’s cash flow and therefore their lifeblood.”
This model demonstrates how simplifying integration while preserving control can create value. It also reduces operational burdens for merchants operating in the ecosystem.
The real opportunity ahead
They wouldn’t lose revenue; they would multiply it, because the problem isn’t demand. The problem is access: more builders, more products, more transactions, and more revenue.
Ethiopia’s payment ecosystem is still in its early stages of development. Infrastructure improvements are happening at a steady pace. However, usability, visibility, and accessibility continue to lag.
The next major success in this space will not depend solely on advanced technology. It will depend on simplifying integration and removing unnecessary barriers. Supporting emerging developers will be equally important. Ultimately, the winners will be those who build not just systems, but inclusive platforms.
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