HiLCoE

School of Computer Science and Technology

ELECTRONIC PAYMENT SYSTEM FOR BUSINESSES IN ETHIOPIA

Prepared by:
AFOMIYA BELAY
BETELHEM YEMANE
MAHLET ZELALEM
SARA TILAHUN

MARCH 2023
Table of contents

1. Introduction 1

2. Statement of the Problem 1

3. Goals and Objectives 2

4. Scope of the Project and Limitations 3
4.1 Scope of the project 3
4.2 Limitations 3

5. Methodology/Approaches 3
5.1 Process Model to be used 4

5.2 Documentation tools, Programming languages and tools, CASE tools 5

6. Significance and Beneficiaries 6
7. Task Breakdown & Feasibility Analysis 6

7.1 Task Breakdown 6

7.2 Feasibility Analysis 7

8. Project Schedule / Timeline 8

9. Reference 9
 1. Introduction
In today's globalized economy, electronic payment methods have become crucial to
commercial transactions. In recent years, Ethiopia has seen, somewhat, a substantial
increase in the use of electronic payments as companies look to improve the speed,
security, and convenience of their financial operations. For businesses in Ethiopia, electronic
payment systems have a number of advantages, including quicker processing times, lower
transaction costs, more transparency, and better financial control.

As a country with large population, Ethiopia faces some challenges in terms of

financial infrastructure. In particular, access to financial services and electronic payment
systems remains limited in many parts of the country. As a result, we noticed some
frustrations with delays and inefficiencies of a manual billing system in some businesses like
restaurants and many others. They can take a long time to process and return the payment
or errors may occur in the billing process causing confusions and delays. Thus, for our final
year project of computer science, we decided on building an electronic payment system for
businesses to offer customers a more convenient and secure way to pay for their purchases.

Moreover, Ethiopia is seeing an increase in demand for electronic payment services.

The demand for services that enable consumers to make payments and access financial
services online is projected to rise as more people have access to smartphones and internet
connectivity. Developers such as ourselves were motivated to create solutions to address
the rising demand and meet the customers needs.

2. Statement of the Problem

Businesses in Ethiopia have been slow to adopt electronic payment methods, which
is preventing the economy from expanding. Cash and checks, which are time-consuming and
security threats, have traditionally been the favored payment methods for businesses to
send and receive payments. Some of the major obstacles to the adoption of electronic
payment systems in Ethiopia include a lack of awareness, inadequate infrastructure,
restricted access to financial services, and the absence of a regulatory framework for such
transactions. As a result, businesses struggle to manage their finances, build their business,
and get access to financial services that can help them flourish. Therefore, these challenges

1
need to be addressed and the adaption of electronic payment systems should be
encouraged to support business growth and development in Ethiopia.

3. Goals and Objectives

The primary goal of this project is to build an electronic payment system that can offer
several advantages over manual payment system in businesses including:

 Instant Payment: Increase the efficiency and speed of payment transactions for
businesses in Ethiopia.
 Improved accuracy: Manual payment systems are prone to errors and can further
delay the payment process. Electronic payment systems, on the other hand, can
eliminate errors by automatically calculating invoices and ensuring that the correct
amount is charged to the customer.
 Better customer convenience: The systems offer customers the convenience of
paying from their mobile device or laptop. Customers can pay their bills from the
comfort of their seats without waiting for a server to bring their checks or standing in
line to pay [1]. 
 Reduce the reliance on cash-based transactions and encourage the use of electronic
payment systems.
 Improve financial inclusion by providing access to electronic payment systems for
businesses of all sizes.

Some of our objectives include:

 Develop a user-friendly electronic payment system that is accessible to businesses

across Ethiopia.
 Establish partnerships with financial institutions to integrate their payment systems
with the electronic payment platform.
 Monitor the usage of the electronic payment system to ensure it is meeting the
needs of businesses and making a positive impact on the economy.
 Offer guidance to businesses on how to use the electronic payment system
effectively.

2
  Promote the benefits of electronic payment systems to businesses, such as increased
efficiency and security, and decreased costs.

4. Scope of the Project and Limitations

4.1 Scope of the project

The project focuses on developing an electronic payment system that is accessible to

businesses across Ethiopia. It will allow customers to pay for goods by establishing
partnerships with financial institutions to integrate their payment system with the electronic
payment platform and monitor the usage of the electronic payment system to ensure it is
meeting the needs of businesses and making a positive impact on the economy.

4.2 Limitations

Some of the limitation that we might face include:

 The availability of reliable and stable internet connectivity in all regions of Ethiopia
can pose challenges in implementing electronic payment systems. 
 Integration with existing payment systems (Banks) and infrastructure could be a
complex process and may require significant investment.
 Businesses adoption and use of electronic payment systems may face a set back by
the lack of awareness and understanding.
 Smaller businesses with limited resources may be discouraged by the expense of
implementing an electronic payment system.

5. Methodology/Approaches

The Electronic Payment System for Businesses in Ethiopia aims to provide a secure,
reliable, and efficient payment system for businesses across Ethiopia. It involves the
development of a user-friendly electronic payment system, partnerships with financial
institutions, and guidance for businesses to adopt and use the system effectively.

3
 The system will launch immediately after the necessary resources have been
secured. The project's timeline will depend on various factors, including the availability of
resources, the complexity of developing the payment system, and the integration of existing
payment infrastructure. The project is expected to be completed within a reasonable
timeframe to ensure the usage of the system as soon as possible.

Furthermore, the team will work closely with financial institutions, businesses and
possible stakeholders to develop a user-friendly electronic payment system that meets the
needs of both customers and businesses across Ethiopia. The team also provide guidance on
how to use the electronic payment system efficiently.

5.1 Process Model to be used

The process model to be used for the Electronic Payment System for Business in
Ethiopia is Agile methodology. This methodology helps manage a project by breaking it up
into several phases. It involves constant collaboration with stakeholders and continuous
improvement at every stage. Once the work begins, teams’ cycle through a process of
planning, executing, and evaluating [2].

The process involves the following steps:

Planning: This stage involves defining the project scope, objectives, and requirements. The
project team identifies the necessary features and functions of the electronic payment
system.

Design: In this stage, the project team would design the electronic payment system,
considering factors such as security, usability, and scalability.

Development: The development stage involves the actual development of the electronic
payment system, with the project team working in sprints to deliver incremental
improvements. Testing and quality assurance would also be conducted during this stage.

Deployment: Once the electronic payment system is developed and tested, it would be
deployed to a test environment for further testing and validation. Any issues would be
identified and resolved before the system is released to users.

4
Release: The electronic payment system would be released to businesses in Ethiopia, and
the project team would continue to monitor its usage and performance. Feedback from
users would be collected and used to make further improvements to the system in
subsequent sprints.

Maintenance: The project team would provide ongoing maintenance and support for the
electronic payment system, ensuring it remains up-to-date and secure.

Overall, the Agile methodology would allow for a flexible and iterative approach to
developing the Electronic Payment System for Businesses in Ethiopia.

5.2 Documentation tools, Programming languages and tools, CASE tools

 Documentation tools:

For our documentation we will be using Google Docs as it allows teams to

effortlessly access and edit the same document at the same time and Microsoft Word for
editing and document creation.

 Programming language and tools:

Front-end development – Java Script and XML, CSS, React JS.

Back-end development – Node JS

For our IDE We will be mostly using Visual Studio Code and Postman for API usage and
testing. Furthermore, in order to meet the particular requirements and demands of the
system, additional programming languages may be adopted as the development of
Ethiopia's electronic payment systems evolves and expands.

 CASE tools:

Use cases will be used to capture the functional requirements of a system and
describe how users interact with the system to achieve specific goals. We will be using
UMLet to create the diagrams.

5
 6. Significance and Beneficiaries

An electronic payment system will allow a reduction in payment processing costs,

faster and more accurate payments, safer and more convenient payment methods, better
access to data and reporting, and the ability to reach new audiences [3]. 

Some of the benefits Include -

Customers: can use electronic payment systems to make payments in a more secure
and convenient way, which can help the economy grow,

Businesses: The electronic payment system can make it easier for small and medium-
sized businesses to access financial services and boost their productivity in Ethiopia.

Institutions of finance: Businesses' increased use of electronic payment systems,

which can aid in cost reduction and revenue growth, can be advantageous to financial
institutions.

7. Task Breakdown & Feasibility Analysis

7.1 Task Breakdown

In task breakdown, the team should have a clear understanding of the project's goals
and scope to ensure that they are aligned and working towards the same outcomes. Each
team member should be assigned a specific task and responsibilities based on their skills,
expertise, and interests. This can be done through a team meeting where each member
discusses their preferences and strengths.

After completion of each task the following deliverables will be produced

Tasks
1 Project Proposal
2 Software / System
Requirements Analysis and
Specification document
Deliverables
- Project Charter
- Requirement’s document
-Use case diagram
- Entity-relationship diagram (ERD)
- Functional requirements

6
 -Non-Functional requirements
3 System Design - System Design Document
- System architecture diagram
- user interface design
4 Object design -Object design document
- Class Interfaces
5 Implementation Report -Source Code
-System documentation
- Test Reports
- User Manual

7.2 Feasibility Analysis

An important step in determining whether the proposed electronic payment system

is practical, viable, and financially viable is conducting a feasibility analysis. The following are
some of the feasibility types conducted:

- Economic feasibility

We have also determined that the proposed Electronic Payment System for
Businesses in Ethiopia is economically feasible, as the estimated development and
implementation costs can be covered by the team, and the potential benefits of
increased efficiency and project completion outweigh the initial investment.

- Technical feasibility

Due to the availability of the necessary hardware, software, and network

infrastructure as well as technical expertise, we have concluded that the proposed
Ethiopian Electronic Payment System is technically feasible.

- Operational Feasibility

7
 Operational feasibility will be determined through time and after the deployment of
the system by evaluating the system's performance, user feedback, and adherence to
the operational requirements outlined in the system design phase.

- Schedule Feasibility
Schedule feasibility analysis has shown that the proposed Electronic Payment
System for Businesses in Ethiopia can be completed within the specified timeline,
and potential risks and delays will be identified and can be mitigated by allocating
additional resources, adjusting project scope, or modifying the project plan as
necessary.

8. Project Schedule / Timeline

Project Charter
001 3 days
1 March, 2023 4 March, 2023

Project Proposal

Project Charter
001 3 days
1 March, 2023 4 March, 2023

Software / System Requirements Analysis and Specification document

8
9. References