Afriset Fintech

What does it take to get a payment switching licence in Ethiopia?

To hold a payment switching licence in Ethiopia, you need the Payment System Operator (Switch Operator) licence from National Bank of Ethiopia. Published minimum capital: ETB 300 million (three hundred million Birr) for a national switch operator; ETB 40 million (forty million Birr) for a switch operator (the sum of the relevant tiers if the applicant operates two or more systems). 2 entities currently hold a payment switching licence in Ethiopia. Full requirements — minimum capital, local presence, timeline, local ownership, fees and ongoing obligations — are set out below in each instrument's own words, with source and date; amounts are in the statute's own currency.

“Payment switching” here is the normalized activity: Own or operate payment switching, routing, clearing or interoperability infrastructure between payment service providers, issuers, acquirers and schemes.

Activity id (as used by the Afriset MCP): fintech:SWITCHING

Payment System Operator (Switch Operator)

National Bank of Ethiopia
Requirement As published Source Source date
Minimum capital
ETB 300 million (three hundred million Birr) for a national switch operator; ETB 40 million (forty million Birr) for a switch operator (the sum of the relevant tiers if the applicant operates two or more systems).
Verbatim
“An applicant intending to be licensed as payment system operator shall have a paid up capital of not less than: a) ETB 300 million (three hundred million Birr) if it is the national switch operator; b) ETB 40 million (forty million Birr) if it is a switch operator; … f) the sum of a paid up capital stated hereinabove under each operator if an applicant intends to be licensed to operate two or more of the payment systems.”
Licensing and Authorization of Payment System Operators Directive No. ONPS/02/2020 (operative PSO base) 2020
Local presence / incorporation
Must be established as a company, with a certificate of registration for the trade name and articles and memorandum of association prepared in both Amharic and English.
Verbatim
“be established as a company … submit articles and memorandum of association prepared both in Amharic and English.”
Licensing and Authorization of Payment System Operators Directive No. ONPS/02/2020 (operative PSO base) 2020
Timeline Not officially published: No fixed number of days within which the National Bank must grant or refuse a payment-system-operator application is published in this directive. Licensing and Authorization of Payment System Operators Directive No. ONPS/02/2020 (operative PSO base) 2020
Local ownership
The national switch operator may only be owned by financial institutions and the National Bank, and any institutional shareholder other than the National Bank is limited to 5%; for other switch operators, ownership by any one person is limited to 40%.
Verbatim
“have ownership by a person limited to 40%, if it is other than national switch operator … only be owned by financial institutions and the National Bank, if it is the national switch operator … have ownership by an institutional shareholder other than National Bank limited to 5% (five percent), if it is the national switch operator.”
Licensing and Authorization of Payment System Operators Directive No. ONPS/02/2020 (operative PSO base) 2020
Fees
ETB 3,000 (three thousand Birr) non-refundable application processing fee.
Verbatim
“An applicant shall pay a non-refundable application processing fee of ETB 3,000 (three thousand Birr) and present proof of payment together with the applications.”
Licensing and Authorization of Payment System Operators Directive No. ONPS/02/2020 (operative PSO base) 2020
Ongoing obligations Not officially published: Operate under system rules approved by the National Bank; the ownership and shareholding conditions above are continuing. No single quantitative ongoing-obligation figure is published. Licensing and Authorization of Payment System Operators Directive No. ONPS/02/2020 (operative PSO base) 2020

Requirements as published in the cited instruments — not legal or compliance advice. Capital and fees are shown in the currency the statute itself uses. Where a value is located but not yet verified, we show that it exists but don't publish the figure. Verify directly with the regulator.

Maintained: this official source is re-checked on a weekly schedule — last checked 2026-08-04 · unchanged since the previous check.

Who already holds this licence?

2 entities are on the National Bank of Ethiopia register under the Payment System Operator (Switch Operator) category — view the register .

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