Ethiopia's fintech sector faces payment fragmentation, where users must navigate multiple apps and wallets instead of a unified system. Several factors contribute to this challenge:
- Siloed development: Fintech companies have built isolated ecosystems, focusing on user retention rather than interoperability.
- Technology-centered approach: Solutions often emphasize backend architecture over user needs, making financial management cumbersome.
- Regulatory and infrastructure hurdles: Ethiopia's national payment switch, EthSwitch, is meant to improve interoperability, but full integration and regulatory alignment remain incomplete.
- Industry mindset: Some fintech players see interoperability as a threat rather than an opportunity, slowing collaboration.
A shift toward user-first experiences and collaborative ecosystems is beginning to take shape. Flamingo, a new platform designed to unify payments by linking banks and wallets without controlling backend infrastructure, represents one of the promising steps in this direction.
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