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Tuesday, June 18, 2024

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    Somalia’s commerce will be’revolutionized’ by a new digital payment system.

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    According to a well-known British newswire, a new national contactless payment system will revolutionise business in Somalia.

    The Somali Central Bank has created a Quick Response Code standard to provide safe payment services as the country transitions to a cashless economy. Somalia is following in the footsteps of Kenya, which established a QR Code standard in May 2023.

    The introduction of a QR code standard is the most recent indication that Somalia seeks to restore its financial services infrastructure, which has been hampered by years of strife.

    Abdirahman Abdullahi was speaking at the launch of SOMQR in Mogadishu on Tuesday, which combines digital payments into a single system that users, businesses, and banks can use.

    “In Somalia, we have a vibrant and large payment system… [but] it is not linked to banks,” Mr Abdullahi explained.

    In 2021, the CBS will build a national payments system to promote interoperability across the country’s 13 lenders. In March 2023, the CBS also stated that all banks in the country would use International Bank Account Numbers (IBAN), decreasing operational risks for banks.

    Contactless payments can be made using a QR code, which implies that all that is required is internet access for safe payment services via banking and other apps.

    “It will be beneficial to businesses as well as individuals,” the bank governor stated.

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