Ethiopia has launched the Fayda wallet, a solution designed towards enhancing financial inclusion and streamlining digital transactions. This wallet, co-developed by TECH5 and Visa is designed to address the need for verified eKYC (electronic Know Your Customer) services in both the private and public sectors.
The wallet has been introduced in Ethiopia by the National ID Program (NIDP).
The Fayda wallet streamlines obtaining a digital copy of the Fayda credential by allowing users to simply download the official app and request their digital ID credential through the wallet. This secure credential, generated using data from the robust Fayda ID system, is then delivered directly to the user’s phone as a verifiable credential (VC). The name Fayda, means value in many Ethiopian languages.
NIDP’s Executive Director Yodahe Zemichael said “A credential wallet would be a container for government and private sector issued standardized verifiable credentials. It’s an exciting new way of delivering value to citizens and extending the functionality of Fayda Digital ID.”
The Verifiable Credential, which adheres to self-sovereign identity (SSI) principles, enables secure online and offline verification for various use cases. They include payments and access to e-government services. Once activated, users can open a bank account with Coopbank and receive a virtual Visa card for instant payments.
The CEO of Coopbank, Mr. Deribie Asfaw, said, “As a bank committed to digitization and financial inclusion-the two core passions of our bank-our collaboration on this remarkable platform enables us to reach financially marginalized communities who have long been excluded from the formal financial system due to the absence of such robust infrastructures. This brings us one step closer to the community and reinforces our commitment to leaving a meaningful mark on the country’s digital transformation journey. As it allows us to live our purpose of Empowering Communities and Transforming Lives, we are truly delighted to take part in this impactful initiative.
TECH5 has worked and co-developed the wallet offering and the infrastructure behind it. TECH5 has also worked with NIDP to build and deploy the necessary trust framework, align with the governance framework, and the rails.
The Fayda ecosystem utilizes several technologies, including:
- KeyShare Digital Wallet: A secure platform for managing digital identities.
- TECH5’s T5-AirSnap: Contactless multi-biometric capture technology.
- TECH5’s T5-OmniMatch: Liveness and matching technologies for eKYC and digital onboarding.
Visa, in collaboration with Coopbank, delivers the digital payments infrastructure essential for facilitating transactions within Ethiopia.
In addition to smartphone users, the Fayda solution includes virtual wallets accessible through government-appointed agents. These agents can securely manage accounts using citizens’ biometrics, maintaining compliance with W3C standards and EU eIDAS frameworks.
The Fayda Digital ID wallet will be officially introduced in the presence of NIDP, TECH5 and VISA at the 2025 ID4Africa conference from May 20-23rd in Addis Ababa.