MOGADISHU — The National Payment System processed 1,409,151 transactions with a combined value of approximately $2.42 billion during 2025, reflecting growing adoption of electronic payment channels and increased interbank settlement activity, according to the Central Bank of Somalia’s Annual Report for 2025.
This represents a 10 percent increase in transaction volume and a 25 percent increase in total value compared with 2024, underscoring the system’s growing importance within Somalia’s financial ecosystem .
Real Time Gross Settlement (RTGS) transactions continued to account for the majority of transaction value, totaling approximately $1.85 billion during the year and representing about 76 percent of the total value processed through the system. This highlights the system’s critical role in facilitating large-value interbank payments and maintaining financial system stability .
The Automated Clearing House (ACH) remained the primary driver of transaction volumes, processing the majority of payments within the system. Total ACH transaction value reached approximately $572 million in 2025, reflecting continued growth in retail and lower-value transactions, supported by increasing use of digital payment channels .
Modernizing Somalia’s Payment Infrastructure
The National Payment System, officially launched in July 2021, marked a historic milestone as the first unified digital infrastructure connecting all licensed commercial banks in Somalia. By integrating Automated Clearing House, Real-Time Gross Settlement, and Instant Funds Transfer into a single platform, the NPS laid the groundwork for a safer, more efficient, and fully interoperable financial ecosystem.
The ACH component 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 handles large-value, time-sensitive payments between banks, eliminating the need for physical visits and enabling immediate settlement of transactions.
In 2023, the Central Bank of Somalia took a bold step by standardizing customer accounts into IBAN-compliant formats across all banks, streamlining interbank transfers and improving accuracy and efficiency in payment processing .
Launch of Somalia Instant Payment System
Building on the strength of the NPS, the Somalia Payment Switch (SPS) launched the Somalia Instant Payment System (SIPS) in January 2025. Championed by the Central Bank of Somalia, the initiative enables real-time, 24/7 transfers across banks and progressively mobile money operators, while supporting the national QR code standard (SOMQR).
Since its launch, seven banks have connected to SIPS, with six more banks and major mobile money operators expected to join, allowing seamless transactions between mobile money account holders and bank customers. The system, built on ISO 20022, the international standard for financial messaging, supports person-to-person transfers, merchant payments, payments to government, and government disbursements to citizens.
The Central Bank has set out a plan to expand SIPS so that commercial banks, mobile money services, and regional payment networks operate through a single connected infrastructure. When fully integrated, the system will connect 14 commercial banks and eight mobile money and electronic wallet providers on one network.
SPS, established as a partnership between the Central Bank and 13 commercial banks, selected BPC’s SmartVista platform, a next-generation solution that meets both local and international regulatory standards. The platform integrates various components, including an Integration Platform for seamless connectivity, a Participant Portal for real-time transaction monitoring, and a Dispute Portal for efficient case resolution. A Fraud Management Solution strengthens security measures, safeguarding transactions from potential threats.
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. The Central Bank is also working to connect SIPS to the Pan-African Payment and Settlement System (PAPSS) before the end of 2026, a link that would allow payments to move across borders without routing through correspondent banks abroad .
Critical Note
The expansion of Somalia’s National Payment System and the launch of the Somalia Instant Payment System represent significant progress in modernizing the country’s financial infrastructure. The ability to process 1.4 million transactions worth $2.42 billion in 2025 demonstrates growing public confidence in digital payments and the formal financial system .
However, the successful integration of mobile money operators, which serve most Somalis in their daily financial lives, remains a critical next step. Without connecting these operators to the network, the interoperability SIPS offers remains limited to the banking tier. The Central Bank’s ambition to connect to PAPSS is promising, but much of the plan still rests on delivery. The mobile money integration has no published date, and the PAPSS connection is a stated target rather than a completed arrangement. For an economy long served by parallel and disconnected networks, the transition to a single national rail will be a change felt well beyond the banking sector .
