Somalia has joined the growing list of African countries modernising national financial systems by launching its first-ever instant payment system, complete with QR payment support.
In collaboration with BPC, the Somalia Payment Switch (SPS) unveiled this new payment network. Championed by the Central Bank of Somalia (CBS), the initiative is designed to transform the country’s payment infrastructure and drive greater financial inclusion across the nation.
Abdirahman M. Abdullahi, CBS Governor and SPS Chairperson, described the launch of the Somalia Instant Payment System (SIPS) as a “transformative milestone for Somalia’s financial sector”.
With the system now fully operational, Somali consumers can make instant transfers via mobile or banking apps, authenticating transactions using a PIN or OTP. Merchants can display QR codes, which customers scan to route payments through the SmartVista Instant Payment system.
Since the launch, seven banks have connected to the SIPS, with six more banks and mobile money operators expected to join soon.
“This innovation brings speed and security to daily transactions, empowering businesses and individuals to embrace a cashless economy,” Abdullahi added.
“BPC has proven to be a reliable technology partner, delivering a robust solution that propels Somalia’s payment ecosystem to a new level.”
The platform, powered by BPC’s SmartVista, provides connectivity and real-time transaction monitoring. It also features a Dispute Portal for resolution and a Fraud Management Solution to protect against security threats.
Initially deployed in the cloud, the system will transition to a local data centre for enhanced operational stability. With 24/7 processing and advanced security features like Public Key Infrastructure (PKI), the platform supports the fast and secure “SOMQR” QR payment system for contactless transactions.
Angelo Bertini, Senior VP and Chief Commercial Officer at BPC, added: “We are honoured 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.”
Rise of instant payments
The adoption of instant payments has surged in recent years, especially in South America, Asia, and Africa. Brazil’s Central Bank initiative, Pix, stands out as the most successful, paving the way for other nations, including Somalia, to launch their own instant payment systems.
Similar to Somalia’s new network, Pix also uses QR codes for payments. Pix’s success was highlighted during the Payment Expert Summit at the SBC Summit Rio, where industry professionals emphasised its value, especially in sectors like igaming.
With over 80% of Brazilian adults using Pix, the platform underpins the payments processing of various industries in the country, drawing the attention of many Western countries. Some of these nations have been looking at how to address the dominance of Mastercard and Visa and the perceived negative impacts this has.
Despite these efforts, Western countries have faced significant challenges in promoting alternative payment methods, as more traditional methods like credit and debit cards are deeply entrenched among consumers.
