The Somalia Payment Switch (SPS1) has successfully launched the country’s first Instant Payment System with QR payment support, powered by BPC’s SmartVista platform.
This initiative, led by the Central Bank of Somalia (CBS), represents a significant step in modernising Somalia’s payment infrastructure, improving financial inclusion, and strengthening economic stability.
Despite the growth of Somalia’s financial sector, a substantial portion of the population remains unbanked or underbanked.
The introduction of the SOMQR standard and the establishment of SPS as the scheme manager and operator aim to reduce reliance on cash, improve interoperability, and expand access to financial services.
BPC, a Switzerland-based provider of digital payment solutions, was selected to implement the system.
The SmartVista platform integrates various components, including an Integration Platform for connectivity, a Participant Portal for real-time transaction monitoring, and a Dispute Portal for case resolution.
A Fraud Management Solution has also been incorporated to enhance security.
Initially deployed in the cloud, the system will later transition to a local data centre to improve resilience and operational stability.
The new infrastructure enables real-time transaction processing around the clock, with security measures such as Public Key Infrastructure (PKI) to prevent fraud and unauthorised access.
The Central Bank, acting as the clearing and settlement agent, oversees integrated settlement and liquidity management systems that provide real-time net position updates and multiple settlement cycles.
The SOMQR national QR payment standard facilitates contactless payments through scanning.
Somali consumers can now make instant transfers via mobile or banking apps and complete QR-based transactions by entering recipient details and authenticating with a PIN or OTP.
Merchants generate a QR code that customers scan, with transactions routed through the SmartVista system.
Seven banks have joined the Somalia Instant Payment System (SIPS) since its launch, with six more banks and major mobile money operators expected to integrate later this year.
This expansion will enable seamless transactions between mobile money users and bank customers, enhancing financial accessibility.
CBS, in collaboration with SPS, aims to establish a resilient and secure national payment infrastructure that aligns with Somalia’s economic recovery objectives and supports international financial integration.
CBS Governor and SPS Chairperson, Abdirahman M. Abdullahi, stated:
“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.”
Angelo Bertini, Senior Vice President and Chief Commercial Officer at BPC, added:
“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.”
Featured image credit: edited from freepik
