Monday July 15, 2024
By Mohamed Omar Ahmed
The Salaam Somali Bank in Mogadishu.Photographer: Hassan ALi Elmi/AFP/Getty Images
(Bloomberg) -- Salaam Somali Bank has partnered with Visa to introduce Visa Debit and Visa Prepaid cards in a bid to improve the speed and security of digital payments and support the African nation’s large unbanked population.
The debit card is the first product to be connected to the point-of-service systems of Somalia’s largest bank, which are used by businesses throughout the county. The card can also be used at ATMs and for e-commerce transactions.
The prepaid cards are expected to be heavily used by the almost 7 million Somalis that require humanitarian assistance, and a means of delivering aid flowing to vulnerable communities, the bank said.
The cards “will enable international NGOs to distribute aid directly to pre-identified beneficiaries,” the bank said. Less than 15% of Somalis have bank accounts, according to a UN report.
The Mogadishu-based bank said is has added 40,000 new customers in the past year, and processes 40,000 transactions daily through its mobile banking service.
Salaam Somali Bank is looking to build transaction capacity to meet the demands of the rapidly-growing population and an economy projected by the World Bank to grow by 3.7% in 2024.