M-PESA Ethiopia has rolled out M-PESA Lehulum, a mobile money platform that allows users to access digital financial services across all telecommunications networks, allowing users to access digital financial services regardless of their telecommunications provider.
The launch comes amid rapid growth in Ethiopia’s digital finance sector, and positions the company to reach previously underserved populations.
By mid-2024, Ethiopia had more than 107 million registered mobile money or wallet accounts, alongside nearly 40 million mobile banking accounts, reflecting strong demand for digital financial tools. The introduction of M-PESA Lehulum, which works independently of any specific SIM card, seeks to remove network barriers that have historically restricted access for millions of users.
The platform enables users to register with any phone number, complete verification through the national digital ID (Fayda) eKYC system, and immediately begin transactions. Services include sending and receiving money, bill payments, airtime top-ups, merchant payments, QR code payments, and access to short-term credit via M-PESA Overdraft (Errif Be M-PESA). Integration with ETHSwitch, Ethiopia’s national payment-switch, allows users to move funds between wallets and bank accounts seamlessly, linking mobile money directly to the formal financial system.
“M-PESA Lehulum is designed to remove barriers and create financial opportunities for all Ethiopians,” said Elsa Muzzolini, chief executive of M-PESA Ethiopia. “By decoupling our services from individual mobile networks, we can reach communities that have been excluded from the digital economy.” She credited the National Bank of Ethiopia and the Information Network Security Administration for regulatory approvals that enabled the launch.
The company said the timing aligns with broader shifts in Ethiopia’s digital finance landscape. Mobile subscriber numbers increased by seven million between 2021 and 2024, while mobile internet costs have fallen sharply, widening access. Meanwhile, telecom liberalisation has encouraged competition and infrastructure investment, setting the stage for a platform that can operate across networks.
Industry observers note that while mobile money adoption is surging, challenges remain. Many users already hold bank accounts, suggesting growth may reflect multiple registrations rather than new financial inclusion. Rural areas still face uneven smartphone penetration and limited agent networks, and digital literacy gaps persist.
M-PESA Lehulum was developed entirely in-house by M-PESA Ethiopia in collaboration with Safaricom Ethiopia, combining local engineering expertise with international standards for security and scalability. It is currently available on Google Play, with iOS support expected shortly. Observers say its uptake in rural and underserved regions will likely indicate whether telco-agnostic mobile money can meaningfully expand financial access in Ethiopia.