6. Mobile money basics (telebirr and more)

Mobile money is a financial service that lets you store, send, and receive money using your mobile phone — without needing a traditional bank account. Your phone number becomes your wallet.

In Ethiopia the most widely used mobile money service is telebirr, operated by Ethio Telecom. Other services include CBE Birr (Commercial Bank of Ethiopia), HelloCash (run by microfinance institutions), and M-Pesa (Safaricom). This lesson focuses on telebirr because it has the most subscribers and is accepted in the widest range of shops and services across the country.

Why mobile money matters for everyday Ethiopians:

• You do not need to travel to a bank or stand in a long queue.

• You can send money instantly to family in another city or rural area.

• Many small shops, taxis, and market vendors now accept telebirr payment.

• You can pay electricity, water, and telecom bills directly from your phone.

• Even people without a smartphone can use mobile money through basic feature phones (USSD menus — more on this below).

Abebe lives in Addis Ababa and sends money every month to his mother in Hawassa. Before telebirr, he had to go to a money-transfer agent and pay a high fee. Now he sends it in under a minute from his phone at almost no cost.

Getting started with telebirr is free and takes only a few minutes. You have two options:

Option A — Smartphone app:

1. Open the Google Play Store (Android) or App Store (iPhone).

2. Search for "telebirr" and install the official app (look for the Ethio Telecom logo).

3. Open the app and tap "Register".

4. Enter your Ethio Telecom phone number and the OTP (one-time password) sent to your phone by SMS.

5. Create a 4-digit PIN (your secret code — do not share this with anyone).

6. Accept the terms and your account is active.

Option B — Feature phone (USSD):

1. On any Ethio Telecom SIM, dial *127# and press call.

2. A text menu appears. Select "1" for English or "2" for Amharic.

3. Follow the menu to register: you will need your Kebele ID number.

4. Create your 4-digit PIN.

5. Confirmation SMS arrives — your wallet is active.

Required for registration:

• An active Ethio Telecom SIM card (your phone number).

• Your national ID or Kebele ID card (for identity verification).

• You must be 18 years or older.

Sara wanted to register for telebirr. She downloaded the app, entered her Ethio Telecom number (+251 91x xxx xxxx), received an OTP by SMS, chose a PIN she could remember (but not her birth year or "1234"), and was done in under five minutes.

Sending money with telebirr (smartphone app):

1. Open the telebirr app and enter your PIN to log in.

2. Tap "Send Money".

3. Enter the recipient's phone number OR select a contact from your address book.

4. Enter the amount in Birr (e.g. 500).

5. Review the transaction details carefully — check the recipient's name and the amount.

6. Enter your PIN to confirm the transfer.

7. A success screen and SMS confirmation are sent to both you and the recipient.

Sending money with USSD (*127#):

1. Dial *127# → Select "Transfer" → Enter recipient number → Enter amount → Enter PIN → Confirm.

Transaction fees:

Telebirr charges a small fee for transfers. The fee depends on the amount. For example, sending 500 Birr costs about 5–7 Birr in fees. Always check the fee shown on screen before you confirm.

Receiving money:

You do not need to do anything special to receive money. When someone sends you money, it arrives instantly in your telebirr wallet and you receive an SMS saying: "You have received [amount] Birr from [number]. Your new balance is [amount] Birr."

Withdrawing cash:

To get physical cash from your telebirr wallet:

• Find a telebirr agent (look for the orange telebirr sign at shops and kiosks).

• Tell the agent you want to withdraw and give them your phone number.

• The agent initiates the transfer, you confirm with your PIN.

• The agent gives you the cash (minus a small withdrawal fee).

Depositing cash:

To put cash into your telebirr wallet:

• Go to any telebirr agent.

• Give the agent the cash and your phone number.

• The agent deposits the money and you receive an SMS confirmation.

Telebirr is not just for person-to-person transfers — you can use it to pay for a wide range of goods and services directly from your wallet.

Common payments you can make with telebirr:

1. Utility bills

• Electricity (Ethiopian Electric Utility — EEU): tap "Pay Bill" → "Electricity" → enter your meter number → enter amount → confirm with PIN.

• Water (AAWSA for Addis Ababa): same process under "Water".

• Ethio Telecom top-up and postpaid bills: use the "Recharge" or "Bill Payment" option.

2. At shops and restaurants

• Many shops display a telebirr QR code or accept your phone number.

• QR payment: tap "Scan QR" in the app → point your camera at the shop's QR code → enter the amount → confirm with PIN.

• Number-based: give the cashier your telebirr phone number; they enter it on their device and you approve the charge with your PIN.

3. Online shopping and apps

• Some Ethiopian e-commerce sites and delivery apps accept telebirr checkout.

• At checkout, select "telebirr" as the payment method, enter your number, and confirm with your PIN or the OTP sent by SMS.

4. Government services

• Some government offices and hospitals accept telebirr for service fees.

Almaz visited a pharmacy in Piassa, Addis Ababa. The pharmacist pointed to the telebirr QR code on the counter. Almaz opened the telebirr app, tapped "Scan QR", pointed her camera at the code, entered 320 Birr for her medicine, and confirmed with her PIN. The transaction completed in ten seconds — no change needed.

Mobile money fraud is a real and growing problem in Ethiopia. Scammers target telebirr users with clever tricks. Knowing the common scams protects your money.

Common telebirr scams to watch out for:

1. The "wrong transfer" scam

A stranger calls and says: "I accidentally sent you money. Please send it back." You check your balance and it seems higher. But the fraudster used a stolen account to deposit money into yours. If you send your own money back, you lose it — and later the original deposit is reversed. Never send money to someone you do not know, even if they claim to have sent it to you by mistake.

2. Fake telebirr agent or customer service

Someone calls claiming to be an Ethio Telecom or telebirr representative. They say your account is at risk and ask for your PIN or OTP. Real Ethio Telecom staff will NEVER ask for your PIN or OTP. Hang up immediately.

3. Fake prize or lottery SMS

"Congratulations! You have won 50,000 Birr in the telebirr lottery. To receive your prize, send 500 Birr as a registration fee." This is always a scam. Legitimate prizes do not require you to pay first.

4. QR code swapping

A scammer replaces a legitimate shop's QR code with their own. Always verify the merchant name displayed on screen matches the shop you are in before confirming a QR payment.

5. Shoulder surfing

Someone watches over your shoulder as you type your PIN. Shield your phone screen with your hand when entering your PIN in public.

General rules for safe mobile money use:

• Never share your PIN or OTP with anyone — ever.

• Always double-check the recipient's number before confirming a transfer.

• Keep your telebirr app up to date (updates fix security holes).

• If you suspect fraud, call Ethio Telecom customer service immediately on 994 (free call) to freeze your account.

• Register your account with your real name and ID — this protects you legally if money is wrongly taken.