Ethiopia Launches Fayda Wallet to Boost Digital ID and Financial Inclusion

Ethiopia has launched a major addition to its Digital Public Infrastructure (DPI) — the Fayda Wallet — as part of its efforts to deepen financial inclusion and streamline digital service access for millions of residents.

The move follows Ethiopia’s membership in the Digital Public Good Alliance (DPGA) in 2023 and builds on its Digital Ethiopia 2025 Strategy and Homegrown Economic Reform Agenda. The new digital ID wallet, FaydaPass, is a product of the National ID Program (NIDP) and is being co-developed with TECH5, a biometric and digital ID technology company, and Visa, the global digital payments provider.

A Verifiable Digital Identity for All

The Fayda Wallet gives Ethiopians access to a digital version of their national ID — known as Fayda, meaning “value” in several local languages — which serves as a verified digital credential. Residents can now download an official app to receive their Fayda credential as a Verifiable Credential (VC) directly on their phones.

The system supports both online and offline verification, aligned with self-sovereign identity (SSI) principles, enabling secure authentication for a range of use cases — including accessing government services, opening bank accounts, and making digital payments.

According to Yodahe Zemichael, Executive Director of the National ID Program, “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.”

Coopbank Becomes First Financial Partner

The state-affiliated Coopbank is the first financial institution to integrate Fayda Wallet, enabling users to open a bank account through biometric eKYC (electronic Know Your Customer) and receive a virtual Visa card instantly.

Coopbank CEO, Deribie Asfaw, said the integration aligns with the bank’s dual mission of digitization and financial inclusion, stating:

“Our collaboration on this remarkable platform enables us to reach financially marginalized communities who have long been excluded from the formal financial system.”

This partnership allows Coopbank to onboard users who previously lacked access due to the absence of formal ID documentation or digital identity frameworks.

TECH5 and Visa Deliver the Infrastructure

TECH5, co-developer of the wallet infrastructure, has provided the underlying trust framework and technologies including:

• T5-AirSnap: Contactless multi-biometric capture
• T5-OmniMatch: Matching and liveness detection for eKYC
• KeyShare Digital Wallet: The secure digital ID management platform

According to Rahul Parthe, TECH5 Co-Founder and CTO:

“This ecosystem is a vital step in the country's digital transformation.”

Visa supports the payments layer of the platform, enabling secure transactions and financial services through the Fayda Wallet. Yared Endale, Visa’s Cluster Head for Eastern Africa, said:

“By leveraging advanced biometric eKYC verification, we are paving the way for secure and seamless financial services that will benefit millions of Ethiopians.”

Beyond Smartphones: Inclusive Digital Access

Recognizing the digital divide, the Fayda system also includes custodian wallets operated by government-appointed agents. These agents can manage credentials and accounts on behalf of citizens without smartphones, using biometric data and adhering to global standards like W3C and EU eIDAS.

The Fayda Wallet is not only a credential holder but also envisioned as a service delivery channel, with future integration expected for services in health, education, e-commerce, and social welfare.

Momentum Toward Mass Adoption

The launch of the wallet coincides with ID4Africa 2025, hosted in Addis Ababa from May 20–23, where NIDP, TECH5, and Visa are showcasing the ecosystem.

So far, 15 million residents have been registered for Fayda Digital ID, with a target of 90 million adults by 2028. The platform is positioned to serve as the trust anchor for Ethiopia’s broader DPI — enabling secure, privacy-preserving, and scalable digital interactions across public and private sectors.