Ethiopian Airlines and Safaricom Ethiopia unveiled the introduction of the M-PESA Wallet as a payment method. The M-PESA Wallet serves as an online mobile payment solution, streamlining the booking process for Ethiopian and cross-border customers. With the M-PESA Wallet, travelers can conduct online bookings, payments, and ticket purchases.
Safaricom launched its M-PESA mobile financial services in Ethiopia in August last year following the receipt of a Payment Instrument Issuer License from the National Bank of Ethiopia three months ago. The launch followed an extensive three-month pilot and testing phase, which ensured the technical readiness of the M-PESA platform.
Ethiopia opened the door for foreign investors to invest in mobile money services when it approved a new National Payment System Proclamation in December last year. The Proclamation, Proclamation No. 1281/2022, allows foreign investors to invest in payment services which are not classified as banking services. Accordingly, foreign nationals can invest as a payment instrument issuer or a payment systems operator in Ethiopia or establish a subsidiary which will be licensed as a payment instrument issuer or payment system operator. To engage in this business, foreign investors who fulfill the eligibility requirement are required to pay a minimum paid up capital ETB 50 million in its USD equivalent and an investment protection fee, USD 150 million.
Source: Fana BC