New Fintech Startup Yagout to Make Debut

Another financial technology (fintech) firm is readying to enter the financial sector as a payment gateway operator. Yagout Pay Financial Technology S.C. is one of over a dozen fintech firms looking to enter the market after the central bank issued an edict in 2020 that allows non-financial institutions to operate as payment instrument issuers and operators. The firm looks to make its debut with 14 shareholders and 50 million Br in subscribed capital, of which three million Birr must be paid up. Earlier this month, Chapa Financial Technologies S.C. made history by becoming the first non-bank company to offer payment gateway services, enabling businesses to accept local and international payment methods from anywhere in the world. The state-owned Ethio telecom debuted as the first non-bank to offer a mobile money platform (Telebirr) last year. Yagout Pay has yet to secure a permit from regulators at the central bank.