The initiative marks a major step in modernising Somalia’s payment infrastructure, promoting financial inclusion and enhancing economic stability, said BPC.

Somalia has successfully launched its first Instant Payment System (SIPS) with QR payment capability, which is powered by Banking Payments Commerce's (BPC) next-generation SmartVista platform.

BPC is a global provider of open systems payment solutions for the financial industry, based in Baar, Switzerland, that focusses on technology development and customer service.

The Central Bank (CBS) is championing the Instant System with QR payments support in Somalia.

According to BPC, the move marks a significant step towards modernising the country's payment infrastructure, increasing financial inclusion, and enhancing economic stability.

The company went on to say while Somalia's financial industry has grown dramatically in recent years, a sizable section of the population remains underserved or unbanked.

It added: “The demand for secure, fast, and modern payment solutions has been pressing. By introducing the SOMQR standard and establishing the Somalia Payment Switch (SPS) as the scheme manager and operator, CBS aims to reduce reliance on cash, ensure interoperability, and expand financial services across the country.”

BPC continued by saying, recognising the need for an advanced digital payment system, the SPS selected its SmartVista platform, next-generation solution that meets both local and international regulatory standards.

Seven banks have connected to SIPS, with six more banks and major mobile money operators expected to join later this year.

“The platform integrates various components, including an Integration Platform for seamless connectivity, a Participant Portal for real-time transaction monitoring, and a Dispute Portal for efficient case resolution,” said BPC.

Additionally, it said its Fraud Management Solution ‘strengthens security’ measures, safeguarding transactions from potential threats.

It continued: “Initially deployed in the cloud, the system is set to transition to a local data centre to enhance resilience and operational stability”

“This innovation brings speed and security to daily transactions, empowering businesses and individuals to embrace a cashless economy. BPC has proven to be a reliable technology partner, delivering a robust solution that propels Somalia’s payments ecosystem to a new level,” said Abdirahman M. Abdullahi, CBS governor and SPS chairperson.

For Angelo Bertini, senior vice president and chief commercial officer at BPC, the initiative is about supporting Somalia’s transition towards a fully digital, inclusive financial system.