The Central Bank of Nigeria (CBN), has approved Interswitch Group as a participant in the Nigerian payments system under a Payments Service Holding Company (PSHC).
Interswitch, in a statement the approval was formally conveyed to the financial technology (Fintech) and integrated payments solution provider on January 13th, making it one of the inaugural licensees issued by the CBN in this category, and coincides with its 20th anniversary.
This follows an earlier announcement by the CBN regarding new licensing categories for participants in the payments system.
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.
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.
The statement said Interswitch’s Group Holding Company retains ownership of the PSHC in Nigeria as well as its other subsidiaries outside of Africa.
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.
Commenting on this development, Interswitch’s Founder and Group CEO, Mitchell Elegbe, was quoted as saying that “Twenty years ago, we placed a bet on 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 license, we remain strongly committed to 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 reiterates Interswitch’s resolve to championing technology solutions that connect and empower individuals, businesses, and communities across the continent.
