Ethiopian payment startup, LakiPay Financial Technologies S.C. has launched a new digital remittance platform aimed at reducing transfer costs, speeding up cross-border payments, and supporting Ethiopia’s fast-growing online creator economy.
LakiPay says the platform, called LakiRemit, offers real-time international transfers, competitive exchange rates, and direct integration with Ethiopian and regional banks. The startup received its payment operator licence from the National Bank of Ethiopia (NBE) last year and has been operating for just over a year.
According to LakiPay’s Chief Executive Officer, Habtamu Tadesse, Ethiopian content producers can lose up to 50 per cent of their earnings to platform fees and payment processing costs charged by platforms like TikTok. He assured that creators can retain up to 95 per cent of the value sent by their supporters by registering on LakiRemit.
“The money will be deposited into a local bank account within 30 seconds,” Habtamu stated, describing what he called a crucial advancement for artists who depend on regular, low-value transfers.
What you need to know
Beyond traditional remittances, LakiPay is targeting a fast-expanding but lightly regulated segment of the digital economy, which is virtual gifts sent by fans to online content creators on platforms such as TikTok.
On live streaming platforms, viewers purchase digital coins which they send as virtual gifts to creators. Creators later convert these coins into cash, after platforms deduct commissions that can be substantial.
Diaspora communities are a major source of support for Ethiopian creators, particularly given the limited monetisation options available domestically. As a result, virtual gifts now represent a significant share of income for many creators, especially those producing live or interactive content.
Business executives say the launch positions LakiPay at the intersection of two major trends in Ethiopia’s digital economy: rising diaspora remittance flows and the rapid growth of social media-based income for local creators.
A locally integrated alternative
LakiPay is betting that a locally regulated, bank-integrated alternative can capture part of this growing market by offering lower fees, faster settlement, and improved transparency compared to global platforms.
According to the company, LakiRemit has received approval from the NBE and its security systems have been certified by the Information Network Security Administration. With its launch, LakiPay becomes one of more than 100 authorised money transfer operators in Ethiopia.
The timing is significant. Ethiopia’s remittance inflows, largely driven by a diaspora estimated at over 2.5 million people, exceeded US$6 billion in 2024, according to state-owned media. Yet a substantial portion of this money still moves through informal channels.
Formal remittance systems have historically struggled with high fees, slow processing, limited digital access, and trust deficits. These weaknesses have contributed to the persistence of informal transfers and have exacerbated the country’s chronic foreign exchange shortages.
Aligning with regulatory reforms
The launch of LakiRemit coincides with increased efforts by Ethiopia’s central bank to channel remittance flows into regulated financial systems. These efforts include incentives for diaspora transfers through official channels and tighter enforcement against informal foreign exchange markets.
For policymakers, the objective is to strengthen foreign currency inflows, stabilise the financial system, and improve transparency. For startups like LakiPay, this policy environment creates an opportunity to build compliant digital infrastructure that aligns commercial incentives with national economic priorities.
By combining remittance services with creator-focused payment tools, experts say LakiPay is positioning itself not just as a transfer service, but as part of Ethiopia’s emerging digital economy stack.
Industry leaders say its launch signals a broader transformation underway, one in which remittances, digital content, and financial technology are becoming increasingly interconnected in Ethiopia’s economic future.
Talking Points
It is notable that LakiPay has built LakiRemit as a locally integrated and regulated remittance platform, addressing two persistent challenges in Ethiopia’s financial system: high transfer costs and slow settlement for cross-border payments.
This alone positions LakiRemit as a practical solution for Ethiopians in the diaspora and for local recipients who rely on frequent, small-value transfers, especially content creators and freelancers.
At Techparley, we see how platforms like this can help modernise financial infrastructure and bring more remittance flows into formal, transparent channels.
The added focus on virtual gifting for creators is particularly important, as it opens up new income pathways for young Ethiopians who currently face limited monetisation opportunities and high platform commissions.
As LakiRemit scales, partnerships with banks, creator platforms, and diaspora networks could accelerate adoption and deepen its footprint. With the right ecosystem support, it has the potential to become a meaningful part of Ethiopia’s digital and financial transformation.
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