Client Overview

Arifpay obtained the country's first Payment System Operator (PSO) license from the National Bank of Ethiopia. The initial vision was to build a sustainable business in the financial services sector while adhering to strict regulatory requirements.

Challenges

1. Talent

   Building a skilled and high-performing team was the initial starting point. Hiring team members in an ecosystem suffering from a lack of entrepreneurial and dynamic talent.

   
   

2. Regulatory Approval

   Securing commercial permission from the National Bank of Ethiopia was the initial hurdle, requiring compliance with rigorous national regulations.

   
   

3. Strategy

   Being a financial institution requires a clear strategic vision and corporate mindset

   
   

4. Market Entry as the First PSO

   Operating as the first PSO in Ethiopia presented the challenge of establishing credibility while navigating uncharted territory.

   
   

5. Product Development

   Transitioning from a product prototype to a market-ready solution requires a high-performing team, a clear vision, an agile approach, and substantial investment.

   
   

6. Transaction Growth

   Starting with zero transactions, Arifpay needed to build trust among consumers and merchants.

   
   

7. Partnership Building

   Convincing sector stakeholders, particularly banks, to form win-win partnerships was challenging, as many were hesitant to engage with a new type of financial institution. These stakeholders are accustomed to outsourcing tasks to tech firms rather than establishing genuine go-to-market partnerships.

   
   

8. Securing Investments

   Converting investor pledges into tangible financial backing while balancing fast profitability and valuation increase was a critical challenge.

Solutions

1. Talent

   International best practices were implemented to build a sustainable yet nimble organizational model, designed to accommodate corporate processes and built for corporate growth. The organizational structure was then set iteratively, hiring less experienced and yet dynamic talent, encouraging rapid personnel growth, and building leaders within the organization.

   
   

2. Regulatory Excellence
   Arifpay worked diligently to build all necessary processes and internal policies to obtain commercial permissions by building trust with regulatory bodies, strictly adhering to financial compliance standards, and sharing lessons learned with the ecosystem.

   
   

3. Pioneering Role in Payments
   As Ethiopia's first PSO, Arifpay made payment interoperability its competitive edge and integrated with EthSwitch—the national payment switch—making interoperable payments more accessible. The team stress-tested all national payment interoperability procedures and processes while improving transaction success rates, especially on the POS (Point-of-Sale).

   
   

4. Corporate strategy and company positioning

   As a financial institution offering tech-based products, a clear vision was set in terms of brand positioning in the ecosystem. Because of the nature of tech and the fact that it evolves rapidly, a company maturity model was defined, helping it remain agile, disruptive, and adaptable while having a fixed vision adopted by the whole team. 

   
   

5. Innovative Product Development

   A rationalized suite of products was launched, with capabilities strictly within the boundaries of the NBE license, tailored to meet the needs of merchants and consumers.

   
   

6. Transaction Expansion
   Focused efforts on merchant onboarding and consumer awareness resulted in billions of ETB processed monthly, with exponential daily growth.

   
   

7. Strategic Partnerships
   By forming strategic alliances with channel partners, a robust ecosystem was developed to facilitate seamless payments with multiple value-adds.

   
   

8. Financial Stability and Growth
   Investor pledges were converted into substantial investments. Arifpay surpassed the break-even point and on the way to achieve the highest valuation among PSOs in Ethiopia.

Key Achievements

• Talent: High-performing team built, following international best practices in terms of internal tech stack, processes, and policies

• Regulatory Milestones: Commercial permission was obtained under the strict oversight of the National Bank of Ethiopia.

• Industry Leadership: First PSO to integrate with EthSwitch, paving the way for other PSOs and fostering healthy competition in the market.

• Operational Success: Portfolio of fully operational products adopted by a growing number of merchants and consumers.

• Transaction Growth: Scaling from zero transactions to processing billions of ETB (USD 25M+) monthly and growing daily.

• Brand Capital: because of its clear positioning in the ecosystem and the thought leadership delivered, Arifpay’s brand became recognized by key stakeholders in the ecosystem, including C-suite executives, high-level officials, and various other decision-makers. Arifpay which was started and perceived as a tech service provider became over time a respected financial institution, having even a leading role in building the Digital Finance ecosystem of Ethiopia.

• Partner Network Expansion: Robust ecosystem of strategic partners and accounts contributing to long-term growth.

• Investment Milestones: Surpassed breakeven, with the highest PSO valuation in the market.

Impact

Arifpay has reshaped Ethiopia’s financial ecosystem by driving innovation, competition, and trust. Its scalable model empowers merchants, entrepreneurs, and consumers while fostering confidence in the country’s growing digital economy.

Future Vision

With a strong foundation in place, Arifpay is poised to achieve new milestones in its maturity model, in terms of organic and M&A led growth, in an ever-evolving sector in the process of opening up to foreign entrants. The focus remains on maintaining integrity, and embracing bold strategies, while leading Ethiopia into a new era of economic growth, fueled by a newly found economic freedom by entrepreneurs who need to pay and get paid.