Safaricom Ethiopia has expanded M-Pesa’s reach by integrating it with EthSwitch, Ethiopia’s national payments network. This move bridges M-Pesa wallets with over 15 banks and other mobile wallets, paving the way for smoother and more inclusive financial transactions. The integration, announced on October 27, marks a breakthrough moment for financial interoperability in the country connecting M-Pesa users directly with over fifteen banks and several mobile wallets.
Through this expansion, M-Pesa customers can now send money straight from their mobile wallets to bank accounts tied to EthSwitch and make payments to merchants that accept EthQR codes issued by banks. The move also works in reverse customers of partner banks who don’t yet use M-Pesa can transfer funds into M-Pesa wallets or pay M-Pesa-registered merchants by scanning the platform’s EthQR code via their own banking apps.
Market Relevance
This move is part of a deliberate and strategic expansion plan. After launching commercially in August 2023, Safaricom Ethiopia has acted swiftly to tailor its operations to the local context and integrate into Ethiopia’s financial and digital landscape.
In July 2024, the company partnered with the Ethiopian Electric Power Corporation to enable electricity bill payments through M-Pesa. A few months later, M-Pesa Global launched, opening a remittance corridor between Kenya and Ethiopia. This allows individuals and small traders operating in both markets to make cross-border money transfers.
More recently in March 2025, Safaricom Ethiopia teamed up with Lakipay to enhance merchant payments and signed an agreement with the Ministry of Health to digitize healthcare payments. The company has also hinted at launching savings and loan services directly through its mobile platform. This move would place M-Pesa as a more comprehensive digital financial ecosystem rather than just a payment service.
Competing in a Crowded Field
These developments are unfolding in a competitive landscape dominated by Telebirr, Ethio Telecom’s mobile payment platform. Telebirr has continued to widen its lead through aggressive service diversification. In April 2025, Telebirr signed a 15-billion-birr (US$99 million) partnership with Siinqee Bank to develop new digital finance products. These include mobile savings, micro-credit, payroll loans, and financing for small businesses and mobile devices.
Telebirr’s ambitions are vast targeting 75 million subscribers and projecting 21.3 trillion birrs in annual transaction value by 2028. Competing in this space requires brand recognition, a flexible product mix, and strong partnerships all of which Safaricom Ethiopia is rapidly building.
Steady Growth and Early Traction
M-Pesa’s momentum in Ethiopia is already measurable. As of May 2025, M-Pesa had 2.4 million active users within a 90-day window and a total user base exceeding 10 million by the end of 2024. Its merchant network has 42,000 partners, with 164.6 million transactions processed in the 2025 financial year. These transactions were valued at roughly 20.6 billion Kenyan shillings (US$159 million).
These numbers are smaller than Telebirr’s but represent impressive traction for a newcomer in a market that had been closed to private telecom operators until recently.
Read more about M-Pesa HERE
