What's Happening?
The Central Bank of Liberia, in partnership with the Mojaloop Foundation, ThitsaWorks, and The AfricaNenda Foundation, has launched the Liberian Inclusive Instant Payments System (IIPS). This new platform
aims to digitize Liberia's economy and improve financial inclusion by enabling interoperability between the country's major mobile network operators, Lone Star Cell MTN and Orange Liberia. Historically, the lack of interoperability in Liberia's cash-heavy economy required citizens to use multiple phones for transactions across different networks. The IIPS addresses this issue by facilitating seamless mobile money transfers. The system was rapidly deployed in just 73 business days, marking the fastest implementation of Mojaloop v17 globally. This version offers advanced cross-border and fintech integration capabilities, enhancing the efficiency of government payments and financial transactions.
Why It's Important?
The launch of the IIPS is a significant step towards financial inclusion in Liberia, a country where account ownership has already reached 52% as of 2024, driven by the adoption of mobile wallets. By integrating key market participants such as commercial banks, microfinance institutions, fintechs, and government agencies, the system is expected to streamline processes like salary disbursements, reducing the time from days to seconds. This development is crucial for rural and underbanked communities, providing them with access to a modern, secure financial infrastructure. The initiative aligns with Liberia's broader digital transformation goals under the ARREST Agenda, aiming to establish a national electronic switch and connect with regional systems like the Pan-African Payment and Settlement System (PAPSS).
What's Next?
The IIPS will eventually integrate with Liberia's nine commercial banks and connect with regional payment systems, laying the groundwork for broader financial resilience and innovation. The successful implementation of this system demonstrates the growing capability of the Mojaloop community and its partners, highlighting the potential for domestic and regional entities to lead technological advancements. As the system becomes fully operational, it is expected to drive further digital transformation in Liberia, enhancing economic stability and fostering innovation in the financial sector.
