Ethiopia Set for Surge in Digital Payments Ecosystem: Visa Study Reveals Path to Accelerated Growth











Digital payments are booming in Ethiopia: Most of the surveyed merchants believe digital payments are bringing convenience for their customers and improving efficiency

Digital payments drive growth: 66% of the surveyed SMEs agree that investing in digital payment technologies will support future business growth

Addis Ababa, Ethiopia, February 13 2025:  Visa (NYSE: V), a global leader in payments, today announced the launch of a new report, ‘Value of Acceptance: Understanding the Digital Payment Landscape in Ethiopia.’ The report reveals rapid digital payment adoption among small and medium-sized enterprises (SMEs), with the vast majority recognizing the benefits for consumers.

The report presents an encouraging outlook for Ethiopia with over 80% of the surveyed SMEs having started to accept digital payments in the last two years, citing increased convenience, reduced fraud risk, and improved efficiency. Furthermore, 66% agree that investing in digital payment technologies will support future business growth.

Digital Payments Momentum

This positive momentum is expected to continue with a high level of preference by SMEs – 92% using digital payments reported satisfactory support from the government and major institutions and quicker payment processing. This satisfaction, the report states, is encouraging 64% of the SMEs already using digital payments to consider investment in additional payment technologies, boosting an already thriving digital payment landscape.

“The research findings paint a promising picture of Ethiopia’s growing digital payments landscape,” commented Yared Endale, Country Manager, Visa Ethiopia “The increasing preference for digital transactions, coupled with the recognized benefits for businesses and the broader economy, creates a powerful opportunity for growth. Visa is committed to working with our partners across the ecosystem to unlock the full potential of digital payments for all in Ethiopia – for individuals and businesses alike.”

Ethiopia’s digital payment opportunities

To encourage digital acceptance, the report recommends security awareness campaigns, value-added solutions such as loyalty programs, and access to data and insights. Given the prevalence of cash, the report also suggests introducing user-friendly digital solutions that mirror cash’s simplicity, positioning digital payments as a way to future-proof businesses and expand their customer base.

The report highlights the opportunity to build the right perception about digital payments as 59% of SMEs are neutral about fraud risks. Citing plans of 64% of the surveyed SMEs to invest in payment technologies and the growth of digital acceptance in the last two years, the report says Ethiopia’s digital savvy market is primed for a surge in the digital economy.

The Broader Value of Digital Payment Acceptance

Digital payments offer crucial benefits for Ethiopian SMEs, boosting revenue through a wider, increasingly cashless customer base, enhancing customer satisfaction with faster transactions, and reducing operational risks by minimizing cash handling. Digital records also provide valuable data that facilitates access to financing, stimulating growth. While cash remains popular for its perceived speed and convenience, there’s significant potential to introduce similarly convenient and secure digital payment solutions that complement cash usage.

Beyond direct benefits, digital payment adoption drives economic growth and financial inclusion, connecting the unbanked to the formal financial system and enabling access to savings, credit, and insurance. Research shows that the transition to the digital economy can generate 1-2% annual GDP growth – a mere 1% increase in card usage generates an average $67 billion annual increase in goods and services consumption across 70 countries and territories.

Visa: A Partner in Driving Digital Payment Adoption

Visa is uniquely positioned to support Ethiopia’s transition to a more digital economy. As a trusted advisor and partner, Visa offers a range of capabilities to help governments, financial institutions, businesses, and technology providers enhance their digital payment acceptance maturity.

Visa’s suite of solutions includes programs for specific merchant segments, innovations like Tap to Phone, Contactless Payments and Click to Pay, and resources educating businesses about the benefits of digital payments.

About the Visa Value of Acceptance report

Visa’s ‘Value of Acceptance: Understanding the Digital Payment Landscape in Ethiopia’ report, conducted by 4Sight Research & Analytics, examines the current state of digital payment acceptance, exploring both opportunities and challenges. The findings are based on face-to-face interviews with 259 SMB owners/managers across who are key decision makers with respect to day-to-day business decisions.



About Visa Inc. Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions, and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.