Ethswitch, the entity responsible for operating Ethiopia’s national payment system infrastructure, has reached the final phase of integrating its domestic card schemes with 32 international card networks through a partnership with the Discover Global Network.

The integration includes India’s rupee-based payment network and is pending regulatory clearance to begin operations.

To support the rollout, Ethswitch has submitted a proposal to the National Bank of Ethiopia to establish an International Settlement Account. Approval of this account is required to enable cross-border settlement for card-based transactions. Once authorized, the account would allow Ethiopian-issued cards to be used in participating countries while also enabling foreign currencies, including the Indian rupee, to be processed within Ethiopia.

The proposed settlement structure is designed specifically for international card transactions, addressing current limitations that restrict offshore or correspondent accounts to a small number of Ethiopian institutions. The National Bank is reviewing the proposal, which represents a new settlement model for the country’s payment system.

The initiative forms part of broader efforts to improve regional and international payment interoperability. Ongoing discussions include potential integration with pan-African and regional payment platforms, as well as collaboration with foreign central banks on card system connectivity.

Ethswitch has also previously entered into cooperation arrangements with India’s National Payment Corporation to support interoperability with digital payment platforms. The broader payment gateway framework aims to link bank accounts, cards, and mobile money services, supporting cross-border transactions related to trade, tourism, and investment.

Source: Capital Ethiopia Newspaper