ET Switch Completed Transactions worth 1.2 Billion Birr

ET Switch Completed Transactions worth 1.2 Billion Birr ET Switch Completed Transactions worth 1.2 Billion Birr

ET Switch SC, company established by the banks in Ethiopia and the National Bank of Ethiopia, disclosed it completed transactions worth 1,175,089,410 Birr since it commenced service in May 2016. The company also noted its performance is challenged by high transaction decline rate of 40 percent per month due to connection failure and system failure in its member banks.

Bizuneh Bekele, CEO of ET Switch, presented a report to the company’s board of directors which stated ET Switch catered 1,495,735 transactions.

The company started its service by connecting all Automated Teller Machines (ATMs) and it aims at integrating all real-time and online payment systems in Ethiopia. 5 months ago the national switch started issuing national payment card dubbed Ethio-Pay. According to Bizuneh, in the future the payment card will be the only of its kind in Ethiopia and it will have 99 types of different financial services for customers.

Since the company started giving service 427,732 debit card holders used the ATMs and had an 85 percent success rate. However, it currently is faced with a transaction decline of 40 percent per month. This is said to be attributable to connection interruption and failure of bank’s system.

ET Switch was not the first switch that was introduced in Ethiopia. Nevertheless, it was only this one that managed to connect all of the existing switches and payment system in the national payment system.

Out of the 17 banks that are shareholders in the switch, 5 of them made direct connection to the national switch system. In other words these banks did not invest on a switch system and other technologies. The 5 banks are Oromia International Bank, Bunna Bank, Lion Insternational Bank, Debub Global Bank and Enat Bank.

Back in its establishment 5 years ago, ET Switch had a paid up capital of 80.5 million Birr. After having all of the banks and the central bank, the switch paid up capital has now boosted to 300 million Birr.

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Latest news, National Bank of Ethiopia, Business, Automated Teller Machines