In a landmark collaboration set to transform the financial landscape of Somalia, Mastercard has joined forces with Premier Bank to launch the Premier Payment Gateway. This innovative digital payments platform is designed to enable Somali businesses to accept international card payments for online purchases, marking a significant step forward in the country’s economic development.
Premier and Mastercard Breaking New Ground
The Premier Payment Gateway, powered by Mastercard Payment Gateway Services (MPGS), provides a secure, seamless, and efficient way for 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, attracting foreign currency into Somalia and boosting the local economy.
Shehryar Ali, Country Manager for East Africa and Indian Ocean Islands at Mastercard, highlighted the benefits of this initiative:
“Through this collaboration, businesses will have access to a safe online payment gateway that will enable them to accept payments, expand their customer base, and boost their revenues. This supports Mastercard’s efforts to bring 50 million micro and small businesses into the digital economy by 2025, underscoring our commitment to fostering financial inclusion and supporting businesses globally. We are proud to collaborate with Premier Bank to enhance the e-commerce landscape in Somalia and grow access to the digital economy.”
Strategic Importance and Vision
Dr. Mohamed Ghedi Jumale, CEO of Premier Bank, emphasized the strategic importance of this collaboration:
“As part of our aspiration to be a market leader through impactful transformation, innovation, and digitization, Premier Bank has collaborated with Mastercard to launch an innovative e-commerce solution designed to help local businesses grow internationally. This partnership will provide secure, around-the-clock payment services to our customers, allowing the bank to expand our customer base both locally and globally by meeting diverse requirements.”
The Premier Payment Gateway aligns with Premier Bank’s 2030 strategy to create a mutually beneficial payment ecosystem for international cardholders and merchants. As the appetite for e-commerce continues to rise, particularly in the wake of the COVID-19 pandemic, this new gateway provides Somali businesses with the tools to capitalize on the growing demand for online shopping.
Expanding Market Reach
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 desires 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 on a global scale while also enabling consumers worldwide to gain access to a broad range of Somali products online.
By simplifying the process for Somali merchants to receive payments in foreign currencies, this platform attracts and retains foreign currency within the country, supporting broader economic growth and financial inclusion goals. It also acts as a centralized gateway to streamline tax and fee collections, improving efficiency and reducing leakage.
Setting New Standards
This strategic alliance brings international standards and security to Somalia’s financial services, enhancing trust and reliability for both merchants and consumers. It sets a precedent for fintech companies operating in emerging markets, demonstrating the potential for fintech solutions to drive economic growth and financial inclusion.
The Premier Payment Gateway is more than just a financial tool; it’s a beacon of progress and a symbol of hope for Somali businesses aiming to thrive in the global marketplace. By providing the infrastructure needed for international e-commerce, Mastercard and Premier Bank are not only supporting the growth of local businesses but also contributing to the overall economic stability and development of Somalia.
Discover more from Techish Kenya
Subscribe to get the latest posts sent to your email.
