Mastercard uses AI and card-number swaps to fight fraud in Ethiopia

Mastercard says it is using artificial intelligence and a technology called tokenization to make digital payments safer in Ethiopia. Tokenization swaps your real card number for a stand-in code. The push comes as the National Bank of Ethiopia reports fraud losses of 1.3 billion birr in 2024.

Why Ethiopia, and why now

Ethiopia is moving beyond cash. People can now use virtual cards, mobile wallets and contactless payment terminals. The government has also pushed to cut reliance on cash and to help banks, fintech firms and mobile money providers work together.

Security worries have grown with the sector. The central bank says attempted cyberattacks on government and private organizations rose 115 percent in the first half of 2024, compared with the same period in 2023.

How the AI part works

Shabir Ahmed, a Mastercard senior vice president for Africa, told Capital that the company uses real-time AI to judge transactions instantly. He said its systems weigh risk within milliseconds to decide whether a payment looks real or fraudulent.

In March 2026, Mastercard unveiled a model trained on hundreds of millions of anonymised transactions. It is meant to catch fraud more accurately than older systems. It also aims to cut false alarms, where a legitimate purchase, including a high-value one, is wrongly flagged.

What tokenization does

Tokenization replaces your 16-digit card number with a digitally generated code. The code can be used to pay without exposing the real card details. Tokens are generally limited to specific devices, merchants or situations, so a stolen one is far less useful.

• Lets credentials be stored and used on phones, in stores and online
• Supports tap-to-pay and wallets such as Google Pay, where available
• Helps protect recurring payments and international subscriptions

What it means for you

If a merchant's database is hacked, tokenized data adds a layer of protection. Thieves get a code that may not work elsewhere, not your actual card number. Ahmed said he now taps his phone instead of carrying a physical card when a contactless terminal is available.

The technology also supports Mastercard's local partnerships with Dashen Bank and Ethiopian Airlines. One example is the ShebaMiles Premium Card, which works in more than 200 countries and territories.

What is not known yet

The article gives no figures on how much fraud Mastercard's tools have prevented in Ethiopia, and no timeline for wider rollout. It notes that tokenization protection depends on how each system is set up. Industry discussions citing Visa data say tokenized purchases can lower online fraud, but no number is given.