Zemen Bank is the latest to join an international e-commerce gateway service partnering with the global payment service provider, Mastercard. The gateway is a merchant service provided through an e-commerce application that authorises credit card or direct payment processing for e-business transactions.

The international payment gateway integrates local businesses to provide users, such as members of the Diaspora, the option to pay for goods and services using credit cards issued where they reside. Zemen Bank's executives eye partnership potential with 200 businesses within the next six months, provided they meet the Bank's criteria. Hotels, food delivery services, grocery stores and supermarkets are among the businesses Zemen Bank is looking to partner with.

The process of integrating with Mastercard Payment Gateway Services (MPGS) took six months, according to Amha Tadesse, vice president of information and technology at Zemen.

“Users need to have a business account and integrate with the Bank,” Amha told Fortune.

The Bank plans to roll out 100,000 standard cards for users.

Last year, the Bank and Mastercard partnered to roll out contactless prepaid cards, allowing travellers to book flights and hotels using foreign currency. Close to 2,000 people use the travel card.

Zemen Bank is only one among a growing number of banks joining the e-commerce gateway, partnering with international payment service providers. The presence of international payment facilitators in Ethiopia dates back to 2005 when the Commercial Bank of Ethiopia (CBE) received Visa membership. However, the state-owned Bank failed to launch e-payment services for inadequate infrastructure.

Dashen Bank began accepting Mastercard in 2008, after becoming a Visa member.

In January 2021, the Bank of Abyssinia began issuing e-commerce enabled domestic and international cards that customers can use to make online payments. The Bank has availed six types of interest-free international and domestic debit cards in partnership with Visa. Abyssinia Bank had issued close to one million cards last year, while close to 920,000 users had subscribed to its BoA-Mobile and Abyssinia Online platforms.

Abyssinia Bank has plans to issue standard Visa cards to bolster international e-commerce gateway services, according to Sosina Mengesha, chief digital banking officer at Abyssinia Bank.

“We're working on the second level authentication with Visa,” Sosina told Fortune. “Around 20,000 transactions have been made through e-commerce gateway platform thus far.”

Industry players say there is growing demand from business owners with foreign currency accounts interested in making transactions with their counterparts abroad. Local businesses that accept payments from abroad and international cardholders are the primary beneficiaries, says Sosina.