The Central Bank of Somalia (CBS) has introduced the Somalia Instant Payment System (SIPS) under the Somalia Payment Switch (SPS1), marking a significant milestone in the country’s financial infrastructure. Powered by BPC’s SmartVista platform, the system aims to promote financial inclusion, reduce cash dependence, and modernize Somalia’s payment ecosystem.
Key Features of SIPS
- Instant Payments: Consumers can now make real-time transfers and QR payments securely through mobile apps, using PIN or OTP authentication.
- Advanced Infrastructure:
- SOMQR: The national QR payment standard integrated into the system.
- Real-time transaction monitoring through a Participant Portal.
- Efficient dispute resolution with a Dispute Portal.
- Enhanced connectivity via an Integration Platform.
- Transition of the Fraud Management Solution from cloud deployment to a local data center for improved security and compliance.
- Security and Compliance: Equipped with Public Key Infrastructure (PKI) to prevent unauthorized access, ensuring round-the-clock security.
Transforming Somalia’s Financial Landscape
Speaking on the launch, CBS Governor and SPS Chairperson Abdirahman M. Abdullahi said:
“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.”
BPC Vice President Angelo Bertini added:
“Our SmartVista platform is designed to support national projects like this for decades. We are proud to contribute to Somalia’s transition to a fully digital, inclusive financial ecosystem.”
Expanding Financial Services Nationwide
- Seven banks are already connected to SIPS, with six more expected to join soon.
- CBS plans to develop a National Payment Infrastructure to facilitate economic recovery and global integration.
Future Goals
The introduction of SIPS aligns with Somalia’s broader objective of creating a cashless economy, fostering innovation, and extending financial services to underbanked communities. By integrating cutting-edge technology, Somalia is making strides toward becoming a fully digital economy.
This initiative also positions Somalia as a key player in Africa’s digital transformation journey, setting a precedent for other nations aiming to modernize their financial systems.
