Somalia Unveils Groundbreaking Instant Payment System

Mogadishu: In an exciting leap towards digital transformation, the Somalia Payment Switch (SPS) has unveiled the nation’s inaugural Instant Payment System, enriched with QR payment functionality and steered by BPC’s cutting-edge SmartVista platform, a top-tier entity in the realm of payment solutions. This initiative, fervently driven by the Central Bank of Somalia (CBS), signifies a robust stride towards not only modernizing Somalia’s financial landscape but also fostering broader inclusivity and economic fortitude.

Over the recent years, Somalia’s financial sector has witnessed commendable growth. Yet, a significant cross-section of the population remains either underserved or entirely excluded from the banking domain. The clamor for secure, swift, and contemporary payment solutions has been palpable. To answer this call, the Central Bank of Somalia, through the introduction of the SOMQR standard and the establishment of SPS as the scheme overseer, endeavors to curtail cash dependency, ensure seamless transactions across platforms, and broaden the reach of financial services nationwide.

Ponder on this: Can a move towards digital payments serve as a catalyst for economic inclusion and growth in a country rife with challenges? In response to this challenge, SPS handpicked BPC’s SmartVista platform, a futuristic solution that aligns perfectly with both local and international standards. This platform encompasses a myriad of components—a seamless Integration Platform for connectivity, a Participant Portal for real-time transaction scrutiny, and even a Dispute Portal to streamline resolution processes. Enhancing the security fabric, BPC’s Fraud Management Solution acts as a stalwart guardian, protecting transactions against potential threats. While the system currently operates on the cloud, plans are in motion to migrate to a nimble local data center, thereby boosting resilience and operational dependability.

With this infrastructure now in place, the SPS can handle real-time transactions continuously, equipped with fortified security levels including Public Key Infrastructure (PKI) that fend off fraud and unauthorized entry. The integrated solutions for settlement and liquidity management, regulated by the Central Bank as the clearing agent, now offer real-time updates on net positions and multiple settlement cycles. Notably, the national QR payment standard, “SOMQR,” facilitates swift, contactless transactions via a straightforward scan—a shift that holds the promise of revolutionizing the everyday transaction landscape.

Imagine a Somali consumer; with this system now operational, they can smoothly initiate instantaneous transfers or make QR-based payments directly from their mobile or banking app. Merchants offer a QR code that consumers scan, allowing the SmartVista Instant Payment system to automatically process the transaction data, fortifying security through a simple PIN or OTP.

Since its debut, seven banks have jumped aboard the Somalia Instant Payment System (SIPS), with an expected six more banks and notable mobile money operators slated to join by the year’s end. This expansion not only promises smooth transactions between mobile money users and bank clients but also heralds a markedly enhanced financial network across the country.

In aspiring to future advances, CBS, in harmonious partnership with SPS, is committed to cultivating a robust, secure, and efficient National Payment Infrastructure that not only furthers Somalia’s economic resurgence but also melds seamlessly with global financial norms.

Mr. Abdirahman M. Abdullahi, CBS Governor and SPS Chairperson, reflected on this pivotal moment: “The launch of SIPS in January 2025 marks a transformative milestone for Somalia’s financial sector. This innovation brings speed and security to daily transactions, empowering businesses and individuals to embrace a cashless economy. BPC has proven to be a reliable technology partner, delivering a robust solution that propels Somalia’s payment ecosystem to a new level.” Such words embody the optimism and determination driving this initiative.

Angelo Bertini, Senior Vice President and Chief Commercial Officer at BPC, chimed in with equal enthusiasm: “We are honored to support Somalia’s transition toward a fully digital, inclusive financial ecosystem and share our international and local expertise to assist SPS throughout this transformative journey. Providing next-generation technology is vital for enabling safe and efficient payment services. Our future-proof, scalable SmartVista platform is designed to support national projects like this for decades to come. We look forward to further accelerating Somalia’s digital transformation and expanding the reach of financial services to more people and communities.”

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Edited By Ali Musa
Axadle Times International–Monitoring.