Mastercard and Premier Bank Collaborate to Expand Digital Payment Capabilities for Somali Businesses
New Premier Payment Gateway enables international online transactions, boosting e-commerce and economic growth in Somalia.
Mogadishu, Somalia | 14 July 2024: Mastercard has collaborated with Premier Bank, a Sharia-compliant commercial bank in Somalia, to launch Premier Payment Gateway, a digital payments platform that enables Somali businesses to accept international card payments for online purchases. This groundbreaking 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 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, thereby 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, stating, “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.”
Dr. Mohamed Ghedi Jumale, CEO of Premier Bank, emphasized on 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 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 for the advancement of 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 in Somalia, 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 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 into the country and supports broader economic growth and financial inclusion goals. It is 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 both 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.
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About Premier Bank
Premier Bank Limited is a fully fledged commercial Bank, licensed and regulated by the Central Bank of Somalia to provide commercial Banking and Financial Services in the country.
Premier Bank financial solutions offering includes Retail, Corporate and SME Banking, Mobile and Internet banking, ATM Banking, SWIFT transfers, Treasury services, trade financing products, personal financing and international money transfer and so much more. Premier Bank also provides Mastercard Debit and Prepaid cards, Premier Wallet, mobile and internet banking service facilitates online banking for both personal and business. https://www.premierbank.so/
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