Facebook Twitter Instagram Somali Magazine - People's Magazine
With the introduction of the Somalia Instant Payment System (SIPS) and the national QR payment standard SOMQR, the Central Bank of Somalia is revolutionizing financial transactions, boosting inclusion, and enhancing economic stability.
Mogadishu: Somalia has taken a big step forward in modernizing its financial system with the launch of the country’s first-ever Instant Payment System. This system, supported by QR code payments, is powered by BPC’s SmartVista platform, a well-known global payment solutions provider. The Central Bank of Somalia (CBS) is leading this initiative to improve financial services, increase financial inclusion, and boost the country’s economic stability.
Although Somalia’s financial sector has grown in recent years, many people still lack access to banking services. There has been a strong need for a secure, fast, and modern payment system. To address this, CBS introduced the Somalia Payment Switch (SPS) to oversee the system and ensure smooth, cashless transactions. This move will help people and businesses reduce their reliance on cash and allow them to make payments more conveniently.
To build this system, SPS selected BPC’s SmartVista platform, which meets both local and international financial regulations. The platform includes different tools, such as an Integration Platform that ensures smooth connections, a Participant Portal that allows real-time transaction monitoring, and a Dispute Portal to handle transaction issues efficiently. Additionally, a Fraud Management Solution has been included to protect transactions from potential risks. While the system is currently operating in the cloud, plans are in place to move it to a local data center to make it even more stable and secure.
With this new payment system, transactions can now be processed instantly, 24/7, with high-level security features. Public Key Infrastructure (PKI) technology is being used to prevent fraud and unauthorized access. Furthermore, the system includes tools for settlement and liquidity management, providing real-time financial updates. A national QR payment standard, called “SOMQR,” allows users to make quick and easy payments by scanning a QR code.
Now that the system is live, Somali consumers can use their mobile or banking apps to transfer money instantly and make QR code payments with ease. Merchants display a QR code, which customers can scan to complete their transactions securely using a PIN or a one-time password (OTP).
Since the system’s launch, seven banks have already connected to the Somalia Instant Payment System (SIPS). More banks and major mobile money providers are expected to join later this year. This expansion will allow customers with mobile money accounts and bank accounts to transfer money seamlessly, making financial transactions faster and more accessible.
Looking ahead, CBS and SPS plan to continue improving the country’s financial system by building a secure and efficient National Payment Infrastructure. This will help Somalia’s economic recovery and strengthen its connection with the global financial system.
CBS Governor and SPS Chairperson, Mr. Abdirahman M. Abdullahi, said: “Launching SIPS in January 2025 is a major milestone for Somalia’s financial sector. This system will make transactions faster and safer, allowing businesses and individuals to shift toward a cashless economy. We are pleased to have BPC as our technology partner, providing a strong solution to enhance our financial ecosystem.”
Angelo Bertini, Senior Vice President and Chief Commercial Officer at BPC, added: “We are proud to help Somalia transition to a digital financial system. Our SmartVista platform is designed to provide safe and efficient payment services for years to come. We look forward to supporting Somalia’s digital transformation and making financial services more accessible to more people.”
About SPS
The Somalia Payment Switch (SPS) is an initiative led by the Central Bank of Somalia in partnership with the Somalia Bankers Association. SPS aims to modernize the country’s financial sector by enabling digital transactions and promoting financial inclusion. The launch of SIPS in 2025 is just the beginning, with more digital payment solutions to come. To learn more, visit www.sps.so.
About BPC
BPC is a global leader in payment processing technology, helping financial institutions and businesses offer innovative and secure payment solutions. With customers in over 140 countries, BPC provides cutting-edge digital banking, payments processing, fraud management, and smart city solutions. Learn more at www.bpcbt.com.