Kacha Digital Financial Service S.C., Ethiopia’s first ever private mobile money service provider, signed an agreement with EtSwitch to provide digital financial services.
The agreement was signed between Abraham Tilahun, CEO of Kacha Digital Financial Service S.C. and Yilebes Addis, CEO of EthSwitch on Tuesday August 30, 2022 at the Addis Ababa Hilton Hotel.
Kacha announced on July 28, 2022 that it will launch unique digital services to unbanked society. Currently, Kacha is working on final preparation and piloting its program before commercial launch.
EthSwitch S.C. was established by banks operating in Ethiopia in 2011. The company has 24 banks and Micro Finance Institutions (MFIs). Its capital has reached 900 million Birr.
“For a financial institution, accessibility and acceleration of transactions through interoperability are major priorities, and I am glad Kacha has succeeded on time and before going commercial,” Abraham said during the signing ceremony.
He added: “By joining EthSwitch, Kacha’s mobile Wallet system is now interoperable with existing and upcoming payment systems allowing its customers to transfer funds from and to other financial institutions using their mobile and wallet accounts.”
Abraham says that the EthSwitch membership also enables Kacha to issue payment cards to its customers, whom they can use on all Automatic Teller Machines (ATMs) and Point on Sale (PoS) terminals throughout the country.
The agreement makes Kacha the first private mobile money service provider to work with EthSwitch.
Yilebes on his part said that, “One of EthSwitch’s mandates is to contribute to the efficiency of the national payment systems and enhance its modernization and accessibility all over Ethiopia. We are happy to welcome the first private mobile money service provider and facilitate its interoperability with the payment ecosystem.”
Kacha Digital Financial Service was established by 13 Ethiopian investors with a 200 million birr capital.