Somalia taps BPC to launch first nationwide instant payment system
Somalia has launched its first-ever nationwide instant payment system as it looks to “reduce reliance on cash, ensure interoperability, and expand financial services across the country”, according to scheme manager and operator Somalia Payment Switch (SPS).
Somalia introduces first nationwide instant payment system
SPS, an initiative led by the Central Bank of Somalia (CBS) in collaboration with members of the Somalia Bankers Association, says the Somalia Instant Payment System (SIPS) allows consumers to “initiate instant transfers from their mobile or banking app and make QR-based payments seamlessly”.
SPS has selected the SmartVista platform from Swiss paytech BPC to power the new system. The platform supports both participant and dispute portals for real-time transaction monitoring and case resolution and an integration platform.
BPC has also extended its fraud management solution to the system, while CBS oversees settlement and liquidity management as clearing and settlement agent, and SOMQR, a national QR payment standard launched in 2023, routes contactless transaction data through SmartVista.
SIPS was first launched in January via a cloud deployment with BPC, but is expected to transaction to a local data centre to “enhance resilience and operational stability”.
Meanwhile, seven financial institutions have already connected to the new system, with six more banks and major mobile money operators expected to join “later this year”.
