Somalia Launches First National Instant Payment System
Somalia's first national instant payment system is a crucial step towards modernizing its financial infrastructure
Slow payments could soon be a thing of the past in Somalia. The Central Bank of Somalia (CBS) just rolled out the Somalia Instant Payment System (SIPS) — a new platform that promises to make payments faster, more secure, and easier for everyone.
Powered by Banking Payments Commerce (BPC), a global player in financial payment solutions, this is set to be a major shift for Somalia’s financial landscape.
For years, banking in Somalia has always been tricky. Only about 15% of Somalians have an official bank account, according to a report from the U.S. Department of State. That means most people rely on cash or informal systems, which are slow and often unreliable. SIPS is designed to fix this by making digital payments fast and accessible to more people.
A big part of this shift is something called SOMQR — a new standard for QR code payments. Imagine walking into a shop and picking up what you need, and instead of digging through your wallet, you just pull out your phone, scan a QR code, and confirm the payment with a PIN or one-time password. Done. No fuss, no waiting. Businesses get their own QR codes, so the whole process is quick and seamless.
This new system is already gaining traction. Seven banks have reportedly joined the system, with six more — including major mobile money operators — expected to come on board by the end of the year. That means pretty soon, paying with SIPS could become the norm.
Of course, handling money at this scale requires tight security. That’s where Public Key Infrastructure (PKI) comes in — a fancy way of saying the system has built-in protections to prevent fraud and keep your money safe. The Central Bank of Somalia is also managing the whole process in real time, making sure everything runs smoothly with multiple settlement cycles each day.
Interestingly, SIPS started out on the cloud, but the plan is to move it to a local data center later. That’ll make the system even more stable and reliable.
Somalia isn’t the only country making this kind of move. South Sudan launched its own instant payment system in February 2025, part of a broader trend toward faster, more secure payments across Africa. With SIPS, Somalia isn’t just catching up — it’s positioning itself as a leader in the next wave of digital finance.
Henry Chikwem
