Mastercard has collaborated with Premier Bank, a Sharia-compliant commercial bank in Somalia, to launch Premier Payment Gateway. This digital payment platform enables Somali businesses to accept international card payments for online purchases. This initiative is expected to significantly expand market reach, increase revenue for local businesses, and contribute to the growth of Somalia’s digital economy.
Powered by the Mastercard Payment Gateway Services (MPGS), the Premier Payment Gateway allows Somali businesses and merchants to accept Mastercard and other branded payment cards from customers worldwide. This capability ensures that merchants receive payments in foreign currency without lengthy settlement processes, thereby attracting foreign currency into Somalia and boosting the local economy.
The collaboration aligns with Premier Bank’s 2030 strategy to create a mutually beneficial payment ecosystem for international cardholders and merchants. It comes at a time when the appetite for e-commerce is rising, providing an opportunity to advance a digital economy in Somalia. E-commerce has increased significantly since the onset of the COVID-19 pandemic, and this new gateway will provide Somali businesses with the tools to capitalize on the growing demand for online shopping.
With 7.99 million cellular mobile connections in Somalia at the start of 2023, equivalent to about 44.7% of the total population, and increasing internet accessibility, the digital payment gateway is well-positioned to tap into the evolving consumer who wants a safe and seamless online shopping experience.
The Premier Payment Gateway represents a first-of-its-kind initiative in Somalia, empowering local businesses to accept international payments and compete globally while also enabling consumers worldwide to gain access to a broad range of Somali products online.
This platform attracts and retains foreign currency into the country by simplifying the process for Somali merchants to receive payments in foreign currencies. It also supports broader economic growth and financial inclusion goals by being a centralized gateway to streamline tax and fee collections, improving efficiency and reducing leakage.
This strategic alliance brings international standards and security to Somalia’s financial services, enhancing trust and reliability for merchants and consumers. This initiative also sets a precedent for fintech companies operating in emerging markets, demonstrating the potential for fintech solutions to drive economic growth and financial inclusion.
