Interswitch says HoldCo to own Nigeria, foreign PSHC licences
By Alexander Chiejina
Interswitch Group, one of Africa’s leading financial technology and integrated payments solution providers has received a Payments Service Holding Company (PSHC) licence issued by the Central Bank of Nigeria (CBN). It comes on the back of an earlier announcement by the CBN regarding new licensing categories for participants in the Nigerian payments system.
Interswitch thus becomes one of the inaugural licensees in this category. According to the regulator, the PSHC regulation requires companies with existing or prospective operations across multiple licence categories to set up a payments service holding company (PSHC). The activities of each of the PSHC subsidiaries operating within those respective licensing regimes are clearly delineated, for clearer accountability, effective risk management and the enablement of better regulatory oversight by the CBN.
And in a statement, the company said that Interswitch Group Holding Company will retain ownership of the PSHC in Nigeria, as well as its other subsidiaries outside of Nigeria.
The development comes as Interswitch marks its 20th anniversary, a landmark that cements its position as a pioneering and integral enabler that has actively supported the growth and development of fintech and payments progressively across Africa over the last 20 years, the company said.
It added that it serves to reinforce its progressive outlook as a frontier-driving company which keeps pushing boundaries to facilitate the creation of new ecosystems that help businesses and individuals scale and thrive, in line with its purpose of inspiring Africa to greatness through innovation, value-creation and excellence.
Mitchell Elegbe, founder and group chief executive officer of Interswitch, commenting on this development, said: “Twenty years ago, we placed a bet on the latent potential we saw in the introduction of e-payment channels at the time, particularly ATMs for the delivery of cash just-in-time, and today, we are gratified to see how far the financial technology and payment systems in Nigeria have grown. On the back of our receipt of this additional licence, we remain strongly committed to a close partnership with the Central Bank of Nigeria to facilitate the delivery of the Payments Vision (2025) and of course, the National Financial Inclusion Strategy.”
Elegbe further reiterated Interswitch’s resolute focus on its overarching mission to continue championing technology solutions that connect and empower individuals, businesses, and communities across the continent.