Faydaverse has been charging banks and other institutions for authentication through Ethiopia’s Fayda digital ID system since August, according to the program’s stakeholder engagement director Saminas Seifu. Citizen registration remains free, with organizations paying for the verification services they use.
The charges were disclosed in an interview published by Capital Ethiopia on October 18. The director said fees vary with the service requested and are intended to cover basic operating costs. Government institutions, private companies and start-ups can access the verification service.
Pricing was developed through research into international practices and decisions by management and the board, alongside consideration of regulatory and investment frameworks. The director said there were no immediate plans to change the charges and that future decisions would prioritize trust and accountability.
Banks previously requested and photocopied identification documents without necessarily authenticating them, the director said. He put copying costs at 10 to 20 birr per document and argued that unreliable verification exposes banks to fraud, while verified digital identities can support services such as remote account opening.
The authentication system uses one-time passwords in line with Ethiopia’s Personal Data Protection Act, the director said, and records which institutions access information, what data they request and how long they have access. Responding to concerns that the fees could hinder financial inclusion, he cited research indicating that 40 percent of Ethiopians had lacked proof of identity and said the program has enabled millions to obtain identification and access services such as banking.
Program figures put enrollment at 52.4 million people across Ethiopia as of October 15, with an average of 200,000 registrations daily. The system had processed approximately 200 million authentication operations and was handling around two million verification requests a day. More than 14.5 million national ID credentials had been printed.
The institution has expanded beyond registration and ID issuance under the Faydaverse name. The director said 150 institutions were seeking collaboration as demand grew for identity verification and wider digital public infrastructure services. Faydaverse plans to add digital credentials, citizen wallets, digital signing and infrastructure for public services.
Zambia and Mozambique are among the countries that have expressed interest in working with Faydaverse, and international cooperation could cover consultancy, system deployment, legal preparation, data center development and technology procurement. Ethiopia and Mozambique signed a three-year digital identity cooperation agreement in April.
“Digital infrastructure requires continuous growth and improvement, and identity authentication is a utility service,” he said. “We provide these services on a fee basis because a reasonable charge is necessary to sustain them.”
Sources: Capital Ethiopia
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By the ID Tech Editorial Team
