In recent years, contactless payments have transformed how people and businesses handle money worldwide. From tapping a phone at checkout to scanning QR codes for everyday purchases, digital transactions are becoming the new normal.
But what does this mean for countries like Somalia, where mobile money is already widely adopted, and what can the rest of the world learn from this transformation?
The Rise of Contactless Payments Globally
Contactless payments are growing rapidly thanks to three key factors:
- Convenience – Quick taps instead of swiping or entering PINs.
- Hygiene – A boost during COVID-19 accelerated the shift away from cash.
- Technology – Smartphones, smartwatches, and NFC-enabled cards made it possible.
According to global financial reports, over 50% of in-person payments in developed markets are now contactless, and this figure is still rising.
Somalia’s Unique Case: Mobile Money First
Unlike many countries that transitioned from cash to cards and then to mobile, Somalia took a direct leap into digital.
- Over 70% of daily transactions in Somalia are conducted via mobile money platforms such as EVC Plus (Hormuud) and Zaad (Telesom).
- Cash use is minimal in urban areas; even small purchases like tea or bus rides are paid via mobile.
- Somalia is a cashless pioneer, driven by necessity. The lack of a stable banking system pushed people toward digital solutions early.
This makes Somalia an interesting case study for the future of contactless payments.
What’s Next for Somalia?
- Integration with Global Systems
- Currently, Somali mobile money works locally but has limited international integration.
- The next big step is connecting mobile wallets with global payment systems like Visa, Mastercard, or PayPal.
- Stronger Security & Regulation
- As transactions grow, so does the risk of fraud.
- Expect tighter regulations, biometric verification (like fingerprint/face ID), and AI-based fraud detection.
- Growth of QR Codes & NFC
- While USSD (dialing shortcodes) dominates now, Somalia may see a shift toward QR payments and NFC-enabled cards as smartphone penetration increases.
- Cross-Border Trade Enablement
- With remittances making up a large part of Somalia’s economy, linking mobile money to international contactless remittance systems could be a game-changer.
What’s Next for the World?
Globally, the future of contactless payments looks even more advanced:
- Biometric Payments – Paying with fingerprints, face scans, or even iris recognition.
- Wearable Tech – Smartwatches, rings, and even clothing chips replacing cards.
- Cryptocurrency & Blockchain – Digital currencies integrated into everyday transactions.
- AI-Driven Personal Finance – Payment systems that not only process transactions but also analyze spending, save automatically, and offer credit insights.
Challenges to Overcome
Even as the technology grows, challenges remain:
- Digital Divide – Not everyone has access to smartphones or stable internet.
- Cybersecurity Threats – As payments go digital, fraud attempts increase.
- Trust & Awareness – Some communities still prefer the “feel” of cash.
Final Thoughts: Somalia as a Model
Somalia shows that leapfrogging traditional systems is possible. Instead of waiting for cards and ATMs, the country embraced mobile money as its backbone.
The next stage of contactless payments will depend on integration, security, and innovation. For Somalia, the focus should be on linking local systems with global financial networks. For the rest of the world, the lesson is clear: convenience, trust, and accessibility are key drivers for mass adoption.
As contactless payments evolve, Somalia may not just be catching up—it could be leading the way.
