NBE mandates adoption of standardized QR codes for digital payments

Addis Abeba – The National Bank of Ethiopia (NBE) has announced a directive mandating all payment service providers to adopt standardized QR codes for digital payments, effective 01 December, 2024.

According to NBE’s statement released on 07 November, 2024, the new mandate requires all payment service providers to issue QR codes that comply with the central bank’s standards, replacing the various QR code systems currently in use.

“This initiative aims to unify the diverse payment QR codes currently in circulation, ensuring that all providers issue their payment QR codes according to the standards set forth by the National Bank,” NBE noted in its announcement. The bank added that standardization will “promote merchant payments through secure, interoperable, and consistent QR code transactions.”

Under this directive, EthSwitch, the National Switch of Ethiopia, will manage the infrastructure needed for QR code interoperability, working under NBE’s oversight to ensure compliance with the new standards.

The directive is part of the National Digital Payment Strategy (2021-2024), which has, according to NBE, driven significant growth in Ethiopia’s digital payment sector. In the 2023/24 fiscal year, the country processed over 2.7 billion digital transactions, with a transaction value exceeding 9.7 trillion birr.

Digital payment accounts, including those for mobile banking, mobile money, internet banking, and debit cards, have surpassed 198 million, indicating a shift toward cashless payments.

The NBE stated that the standardized QR code system “is set to further transform merchant payments and transactions across the country.” The bank highlighted that this measure will increase digital payment adoption by providing merchants and users with a “secure, interoperable, and user-friendly payment experience” and will “support economic growth by strengthening the digital payment ecosystem.” AS