Ethiopia's Groundbreaking Launch of Its First Domestic Credit Card with OpenWay and SanuPay

Ethiopia's First Domestic Credit Card Launch

In a significant step towards the modernization of East Africa's financial environment, Ethiopia is set to unveil its very first domestic credit card, spearheaded by SanuPay, a cutting-edge third-party payment processor from the UAE. This venture is a partnership with OpenWay, a prominent entity specializing in digital payment solutions, aiming to redefine the financial landscape in Ethiopia.

The introduction of this credit card represents a major leap forward for the nation, focusing on enhancing financial accessibility and creating a robust digital payment infrastructure. The innovative card ecosystem is powered by OpenWay’s Way4 platform, which offers comprehensive solutions for card issuing, acquiring, switching, and mobile wallet services.

Scope of the Credit Card Initiative

SanuPay has ambitious plans to distribute an impressive 4 million debit and prepaid cards alongside 5,000 credit cards supported by Visa and Mastercard. In tandem with this initiative, the company is set to deploy 10,000 point-of-sale (POS) terminals and 200 ATMs across Ethiopia, all equipped with the state-of-the-art Way4 system. The rollout is expected to commence with Oromia Bank, which intends to launch a co-branded loyalty card in partnership with Sheba Miles.

A key player in this transformative effort is SantimPay, a licensed payment system operator sanctioned by the National Bank of Ethiopia. Its role involves ensuring that the local transaction infrastructure is secure, efficient, and aligned with compliance protocols, further supporting Ethiopia's evolution into a cashless economy.

Regional Expansion Plans

SanuPay's aspirations reach beyond Ethiopia's borders, as the company forges collaborations with banks and fintechs in neighboring Kenya to enhance card processing, remittance, and cross-border transaction capabilities. Meanwhile, in Rwanda, SanuPay plans to empower local fintech companies, enabling them to issue virtual cards, adopt tokenization technology, launch digital wallets, and incorporate mobile payment solutions.

OpenWay's Way4 platform is not new to the African market; it has already demonstrated its functionality in various partnerships, particularly with institutions like Equity Bank. The platform's modular design is particularly appealing as it allows for rapid deployment of 95% of functionalities without extensive coding, catering to the fast-paced evolution of fintech services.

Expert Insights

Alfred Gachaga, the CEO of SanuPay stated, "We have selected the best-in-class solution to provide best-in-class payment services in Ethiopia. Partnering with OpenWay and deploying Way4 enables a resilient, scalable, and compliant infrastructure that supports Africa's digital financial transformation."

Also highlighting the significance of this collaboration, Hermann Mike, Regional Director for Sub-Saharan Africa at OpenWay mentioned, "This collaboration with SanuPay reflects our commitment to empowering innovative financial institutions across Africa. Way4 enables Ethiopia's first domestic credit card while laying the foundation for a modern, inclusive, and interoperable payments landscape."

Conclusion

This groundbreaking initiative serves as a scalable model for fintech development in the region, showcasing how local resources can effectively address user needs. It paves the way for a digital payments ecosystem that not only meets current demands but sets the stage for future growth in Africa's financial sector. With these advances, Ethiopia is poised to become a leader in the burgeoning fintech landscape of Africa.