With a unanimous decision that marks a turning point for Somalia’s financial infrastructure, the Board of Directors of Somalia Payment Switch (SPS) has approved the implementation of the Somalia Instant Payment System (SIPS) powered by SmartVista’s payment switching solution. The resolution, passed on December 25th, 2023, sets in motion a transformative journey toward a modern, integrated payment ecosystem for Somalia.

The board’s resolution encompasses the procurement and implementation of payment switching solution. This strategic choice aligns with SPS’s vision to establish a state-of-the-art payment infrastructure that meets international standards while addressing Somalia’s unique market needs.

Impact on Financial Sector

 The implementation of the envisaged instant payment system – SIPS – will revolutionize how financial institutions interact and how their customers make payments:

• Enable real-time interbank transfers
• Support multiple payment channels and instruments
• Facilitate integration with the SOMQR standard
• Enable future cross-border payment capabilities
• Reduce operational costs for participating institutions

The board’s decision comes at a crucial time as Somalia positions itself for integration with regional and international financial networks. The implementation of SIPS will provide the necessary foundation for Somalia to participate effectively in the global digital economy while ensuring domestic payment needs are met efficiently and securely.

Financial institutions and stakeholders interested in participating in the SIPS ecosystem are encouraged to engage with SPS for integration requirements and timelines. This transformative initiative marks another significant milestone in Somalia’s journey toward a modern, inclusive, and efficient financial system.