Somalia Goes Cashless with Landmark Instant Payment System

GOOBJOOG NEWS | MOGADISHU: In a groundbreaking move to modernize its financial sector, Somalia has launched its first-ever Instant Payment System (SIPS), allowing real-time transactions and QR payments across banks and mobile money platforms.

The system, powered by BPC’s SmartVista platform, was unveiled under the leadership of the Central Bank of Somalia (CBS), marking a significant step toward financial inclusion, digital payments, and economic stability.

For years, Somalia’s financial sector has expanded rapidly, yet millions remain unbanked or underserved. The heavy reliance on cash-based transactions has limited accessibility and security.

The new system, managed by the Somalia Payment Switch (SPS) and integrating the national SOMQR standard, aims to bridge this gap by enabling fast, secure, and seamless transactions between banks and mobile wallets.

The Instant Payment System allows 24/7 real-time transfers, where users can send money directly from their mobile banking apps and complete QR-based transactions with a simple scan.

The infrastructure includes advanced fraud protection with Public Key Infrastructure (PKI) and a dispute resolution portal, ensuring high security and efficiency. Initially deployed on the cloud, it will soon transition to a local data center for greater resilience.

Since its launch, seven banks have connected to the system, and six more banks along with major mobile money operators are set to join later this year. This expansion will fully integrate Somalia’s financial ecosystem, allowing seamless interoperability between mobile money and bank accounts, a first for the country.

Speaking on the impact of SIPS, CBS Governor and SPS Chairperson, Abdirahman M. Abdullahi, described the launch as a “transformative milestone” that will revolutionize daily transactions.

“This innovation brings speed, security, and efficiency to payments, empowering businesses and individuals to embrace a truly cashless economy,” Abdullahi stated.

BPC’s Senior Vice President, Angelo Bertini, emphasized the significance of this transition, noting that providing next-generation technology is key to Somalia’s financial transformation.

With the CBS and SPS pushing for a fully digital and interconnected financial system, Somalia is on the path to becoming a regional leader in modern payment solutions.

As financial institutions and mobile operators continue to join SIPS, the country is set to experience greater financial accessibility, enhanced security, and a more inclusive economy.

This launch is more than just an upgrade, it is a bold step toward economic integration, financial empowerment, and a future where every Somali has access to fast and secure digital payments.