Mastercard is strengthening digital payment security in Ethiopia by deploying artificial intelligence and tokenization technology as electronic transactions become increasingly common.

The move comes amid growing use of mobile wallets, virtual cards and contactless payments, alongside concerns about cybercrime and financial fraud.

According to the National Bank of Ethiopia, fraud losses totaled Birr 1.3 billion in 2024. Attempted cyberattacks against public and private institutions also rose by 115 percent during the first half of 2024 compared with the corresponding period in 2023.

Mastercard's AI-powered systems can assess transaction risks within milliseconds, helping identify suspicious activity while reducing unnecessary declines of legitimate payments.

In March 2026, the company introduced a transaction specific AI foundation model trained on hundreds of millions of anonymized transactions. The technology is designed to recognize complex fraud patterns that conventional detection systems may miss.

The company is also promoting tokenization, which replaces actual card numbers with secure digital identifiers during transactions. By limiting exposure of sensitive payment information, the technology helps protect customers using online stores, digital wallets and contactless terminals.

These measures complement Ethiopia's efforts to modernize its financial infrastructure, improve payment interoperability and reduce dependence on cash.

Mastercard's local partnerships include initiatives with Dashen Bank and Ethiopian Airlines, such as the ShebaMiles Premium Cards, which offer travel benefits and international payment functionality.

Source: Capital Ethiopia Newspaper