In what appears to be a first for the country, the Somalia Payment Switch (SPS) payments infrastructure under the Central Bank of Somalia has introduced an instant payment system that includes support for QR payments.
The system is powered by the SmartVista platform from BPC, a company that says it enables real-life transactions with its banking, payments and commerce platform.
The Electronic Payments International news service explains that through the SOMQR, the national QR payment standard, and the establishment of the Somalia Payment Switch (SPS) as the scheme manager and operator, CBS aims to reduce cash dependence and expand financial services nationwide. This initiative will, it is hoped, modernise Somalia’s payment system and promote financial inclusion.
SPS says that BPC’s SmartVista platform meets both local and international regulatory standards. The platform features multiple elements, including a participant portal for real-time transaction monitoring, an integration platform for connectivity, and a dispute portal for efficient case resolution.
Additionally, BPC’s Fraud Management Solution strengthens security measures, safeguarding transactions from potential threats. Initially deployed in the cloud, the system is set to transition to a local data centre to enhance resilience and operational stability.
The newly implemented infrastructure allows SPS to process transactions in real time at any time, with security measures like public key infrastructure (PKI) to prevent unauthorised access.
The CBS, acting as the clearing and settlement agent, oversees integrated settlement and liquidity management solutions by providing real-time position updates and multiple settlement cycles.
Somali consumers can now make instant transfers and QR payments securely via mobile apps, using PIN or OTP authentication.
BPC says that since its launch, seven banks have connected to what is being called the Somalia Instant Payment System (SIPS), with six more banks and major mobile money operators expected to join later this year.
CBS and SPS say they plan to develop a national payment infrastructure to support economic recovery and global integration.
