Somalia has recently introduced a Quick Response (QR) Code Standard as part of its efforts to offer secure payment services through banking and e-commerce applications.
According to the Governor of the Central Bank of Somalia (CBS), Abdirahman Mohamed Abdullahi, the newly introduced standard, known as SOMQR Code, will provide a unified system of parameters for secure payment transactions. These standards will enable both merchants and shoppers to conveniently make or receive payments while ensuring the security of users’ funds.
“SOMQR Code Standard will revolutionize the payment landscape in Somalia as a low-cost, scalable, secure, and interoperable solution towards a cashless society,” said the CBS Governor in Mogadishu at a ceremony that was attended by 13 private banks.
Somalia will be joining its counterparts on the African continent, such as Kenya and South Africa, by launching a standardized QR code system. Kenya’s standard was launched in May 2023 with the aim of ensuring that QR codes issued by Payment Service Providers and banks conform to a uniform format and are interoperable with other institutions and mobile money networks.
Mr. Abdullahi emphasized the importance of Somalia’s continued modernization and digitalization of its national payment systems. He highlighted the principles of interoperability, financial inclusion, and efficiency as key factors in building a digital economy and recovering from the years of conflict and instability.
The Central Bank of Somalia has expressed its intention to establish ambitious interconnections among all financial service providers. This objective aims to enhance the security and reliability of payment platforms while ensuring consistency in tariffs across the board.
“The close cooperation between the Central Bank of Somalia and 13 commercial banks under the Somali Bankers Association (SBA) set up a strategic payments company named Somali Payments Switch (SPS),” said Mr Ahmed Shirwa, the chairman of SBA.
The Central Bank of Somalia is working on a national digital payments platform to promote interoperability among banking services, e-commerce platforms, and mobile money payment systems.
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