The Central Bank of Somalia (CBS) has marked a historic milestone with the establishment of the National Payment System (NPS), the first of its kind in Somalia’s history. Officially launched in July 2021, the NPS has become the cornerstone of the country’s financial modernization, enabling all licensed commercial banks to connect and transact through a unified digital infrastructure. By integrating Automated Clearing House (ACH), Real-Time Gross Settlement (RTGS), and Instant Funds Transfer (IFT) into a single platform, the NPS has laid the groundwork for a safer, more efficient, and fully interoperable financial ecosystem.

The ACH component of the system supports the bulk processing of payments such as salaries and vendor transactions, significantly enhancing the Somali government’s ability to pay its public workforce on time. RTGS, on the other hand, handles large-value, time-sensitive payments between banks, eliminating the need for physical visits and enabling immediate settlement of transactions. In 2023, CBS took a bold step by standardizing customer accounts into IBAN-compliant formats across all banks, including its own. This move not only streamlined interbank transfers but also ensured that CBS accepts only IBAN-compatible transactions, thereby improving accuracy and efficiency in payment processing. Another transformative feature introduced under the NPS is the Somali Quick Response Code (SOMQR), launched in March 2023. Built upon EMVCo standards, SOMQR empowers customers to make instant, secure payments for goods, services, taxes, and fees simply by scanning a code—an important step toward a cashless society.

The strength of the NPS provided the foundation for launching the Somali Payment Switch (SPS) and the Somali Instant Payment System (SIPS) in January 2025. Inaugurated by the Prime Minister of Somalia, SIPS represents a major leap forward in digital financial services by enabling real-time, 24/7 transfers between banks, mobile wallets, and point-of-sale terminals. It allows seamless Person-to-Person (P2P), Person-to-Merchant (P2M), and Government-to-Person (G2P) transactions, ensuring that individuals and businesses can conduct transactions regardless of which provider they use. This eliminates longstanding inefficiencies associated with traditional banking, including delays in emergency fund transfers and limited interoperability.

The implementation of NPS and SIPS signifies the Central Bank’s enduring commitment to building a transparent, automated, and fully regulated financial infrastructure. It supports broader goals such as financial inclusion, digital governance, regional integration, and private sector-led growth. With over two-thirds of payments in Somalia already processed through mobile money and other digital platforms, the country is poised to become a regional leader in cashless and instant payment systems. As CBS continues to enhance its digital infrastructure, Somalia’s future in financial technology looks promising, paving the way for economic empowerment and sustainable development.