New digital payment system to 'revolutionise' business in Somalia

A new national contactless payment system will revolutionize business in Somalia, the central bank governor has told a famous British newswire.

The Central Bank of Somalia has launched a Quick Response Code standard to provide secure payment services as it moves towards a cashless economy. By launching this code, Somalia follows in the footsteps of Kenya, which launched a QR Code standard in May 2023.

The launch of a QR code standard is the latest sign that Somalia intends to rebuild its financial services infrastructure, hindered by years of conflict.

Abdirahman Abdullahi was talking after the launch in Mogadishu on Tuesday of what is called SOMQR, which brings digital payments into one system that can easily be used by customers, businesses and banks.

"We have a vibrant and large payment system in Somalia… [but] this has not been connected to banks," Mr Abdullahi explained. 

In 2021, the CBS launched a national payments system to drive interoperability among the 13 lenders in the country. In March 2023, the CBS also announced the adoption of International Bank Account Numbers (IBAN) by all banks in the country, reducing operational risks for banks. Contactless payments can be made via a QR code, which means all one needs is access to the internet for secure payment services via banking and other apps.

"It will be beneficial to businesses as well as individuals," the bank governor said.