Somalia: over 160 million mobile payment transactions are processed in digital financial services
“Our future-ready SmartVista platform ensures Somalia benefits from all the world has to offer payment innovations.” Angelo Bertini, Senior Vice President and Chief Commercial Officer at BPC
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Africa Inside Bisseneis Report.
Mogadishu (ANN)-Somalia, historically characterised by a predominantly cash-based economy, has recently made significant developments toward digital financial inclusion, But unsures Somalia benefits from all the world has to offer payment innovations.
The challenge was also pushed by the concentration of licensed commercial banks in urban areas and the financial exclusion of rural and nomadic populations due to the country’s environment.
Accoding to the Report Published by Africa Inside Bisseneis say, The country’s financial landscape has long been shaped by limited access to formal banking services, with only about 15% of the population banked. The challenge was also pushed by the concentration of licensed commercial banks in urban areas and the financial exclusion of rural and nomadic populations due to the country’s environment. However, recent government initiatives aimed at promoting digital payments and modern financial solutions are yielding positive results. Today, over 160 million mobile payment transactions are processed in Somalia, reflecting a rapid uptake of digital financial services.
Understanding the benefits of digitalization, Somalia’s government has taken huge steps to modernise its financial ecosystem and provide citizens with access to reliable, internationally accepted payment methods. In line with its vision to digitally transform the economy, the government has prioritised expanding digital payment options to both individuals and merchants. To support this transition, Central Bank of Somalia joined a World Bank program that aids cash-based economies across Africa in adopting digital financial solutions, fostering greater financial inclusion and economic stability. The bank has implemented significant reforms to strengthen its regulatory framework and ensure a sound and stable financial sector. These reforms include introducing comprehensive regulations through 2022-2023, manuals, guidelines, and directives to enhance governance and improve internal controls.
The impact of World Bank-supported projects is undeniable, with initiatives often focusing on launching an official tender for deploying advanced digital payment solutions. BPC was chosen as a partner to deliver technological platform designed to support the Central Bank of Somalia’s strategic objectives.
The decision was based on evaluation of BPC’s extensive global expertise, a strong track record of success with other World-bank projects in the region, and the unparalleled capabilities of its next-generation SmartVista digital platform. By adopting SmartVista platform, the Central Bank of Somalia took a significant step toward modernising its financial systems and advancing the nation’s digital transformation agenda, ensuring its citizens and businesses benefit from cutting-edge payment infrastructure. Leveraging the technology, the Central Bank of Somalia introduced Instant Payments functionality and the Unified National QR code, SOMQR.
Built on the international EMV standard, SOMQR improved payment efficiency and transaction processes by reducing manual data entries and accelerating financial inclusion in Somalia’s mobile centric economy. Instant Payments introduction aim to promote interoperability and interbank transfers across the country’s thirteen commercial banks while integrating seamlessly with existing national payment systems such as RTGS and ACH.
Since the initiation of the Somalia project, a market traditionally characterised by low levels of financial inclusion has witnessed significant progress in cashless transactions. Between 2021 and 2024, digital transaction volumes within Somalia’s National Payment System experienced a growth over 37%, while the overall value of these transactions grew by more than 40% during the same period.
The Central Bank of Somalia earlier highlighted the transformative nature of this initiative, stating, “The Central Bank of Somalia remains committed to fostering a thriving financial sector that embraces technological and promotes financial inclusivity. The introduction of the SOMQR marks a significant milestone in the country’s digitalization process and underscores the CBS’s dedication to facilitating secure and efficient financial infrastructure for the support of economic growth.”
The project was fully implemented in the cloud by BPC, transitioning Central Bank from a basic traditional card transaction switch to a modern national-level payments system 2.0. The provision of BPC platform enabled the use of Instant Payments for not only peer-to-peer transfers but also potentially for critical government functions such as fare collection, social benefits disbursement, tax payments, and fees.
Introduction of Instant Payments and QR-based solutions have enhanced the safety and transparency of financial transactions, driving the shift from cash-based operations to a secure digital payments’ environment. The initiative clearly reduces risks and fraud associated with cash handling, promotes accountability, and ensures greater visibility across financial activities.
Angelo Bertini, Senior Vice President and Chief Commercial Officer at BPC said – “BPC is proud to play a key role in supporting Somalia’s journey toward digital transformation and financial inclusion. We are deeply committed to the country’s progress and are honored to have been selected among other providers to deliver our advanced solutions. Backed by our extensive regional and global expertise, our future-ready SmartVista platform ensures Somalia benefits from all the world has to offer payment innovations.”