SantimPay Joins Ethiopia’s Digital Remittance Market with FrankRemit

antimPay Financial Solutions S.C., one of Ethiopia’s leading payment operators, has partnered with the Bank of Abyssinia to launch a digital remittance service dubbed FrankRemit. Unveiled at the Hilton Hotel on Wednesday, the service enables international transfers from nearly all countries and has been integrated with all banks operating in Ethiopia, as well as mobile money services, M-Pesa, telebirr, and CBE Birr.

Santimpay’s new service promises to facilitate remittance transfers within minutes without charging any transaction fees. Users will need a Mastercard or Visa card to access the service available for both webapp and smartphone access. The platform also allows diaspora to send gifts through a Frankcard service launched in partnership with Oromia Bank and Shoa Supermarket.

“It took us nearly a year to develop the platform,” Tinsae Desalegn, CEO of SantimPay, told Shega.

He said FrankRemit has been rigorously tested over the past two weeks with transfers from several countries to ensure seamless service. Tinsae also noted that FrankRemit will not be working with independent forex bureaus for now. 

In the 10 months since Ethiopia transitioned into a market-based exchange regime policy, a handful of operators have ventured into the remittance business, including the majority state-owned ethio telecom. Existing operators like CashGo have also updated their features to fit the floated currency, while the other telecom operator in the country, Safaricom Ethiopia, has indicated plans to enter the business.

Digital remittance services have historically struggled to operate in Ethiopia, with the central bank banning them briefly three years ago. SantimPay looks to become a formidable force in the emerging digital remittance business as it evolves further from its main service as a payment operator. The Company will be tapping into a market which provides a vital source of currency for Ethiopia, totaling nearly $ 5.1 billion in the past nine months.

During the 2023/24 financial year, the nearly three-year-old payment operator managed to facilitate transactions of around 18 billion Birr. SantimPay is actively expanding its service portfolio, having launched a local fundraising platform for community-based finance six months ago. It is also ramping up efforts to become a major player in Ethiopia's emerging Point-of-Sale (PoS) business. The Company is offering 15% bonuses to entice early activity in the new digital remittance platform.