America’s global payment technology company Visa paying $200 million for 20% stake in Nigeria’s Interswitch

Although we are headquartered in Washington D.C., USA, our reporters and editors are working around the globe to cover what you care about. Become one of our members and help us keep our quality news free and available for all.

Visa Inc., an American multinational financial services corporation headquartered in Foster City, California, is paying $200 million for 20% stake in Interswitch, Nigeria’s largest electronic payments company, UK’s Sky News reported on Sunday quoting anonymous sources.

Visa, which describes itself as a “global payments technology company working to enable consumers, businesses, banks and governments to use digital currency”, is widely known to facilitate electronic funds transfers throughout the world.

Interswitch, which describes itself also as an “Africa-focused integrated digital payments and commerce company which facilitates the electronic circulation of money as well as the exchange of value between individuals and organizations on a timely and consistent basis”, is a highly profitable company set to hit the London Stock Exchange next year.

Bloomberg reported that the Nigerian company was set to be valued at as much as $1.5 billion ahead of a planned IPO next year.

The company’s previous plans for a 2016 IPO were put on hold following a recession in Nigeria.

With its planned IPO next year and the backing from Visa, Interswitch is attaining the same status reached by Jumia, the e-commerce company, when it was listed for over $1.4 billion in April this year.

In just 17 years since Nigerian engineer and entrepreneur Mitchell Elegbe founded Interswitch in 2002 with a mission to “connect Nigeria to the digital world”, the company has grown drastically to become one of Africa’s leading digital-payments providers, processing at least $38 billion in transactions value in 2017 alone.

Today, Nigerian consumers and businesses make more than 300 million digital transactions every month across a suite of Interswitch-enabled channels.

In partnership with two leading private equity firms, US-based TA Associates and UK-based Helios, Interswitch plans to list on the Lagos and London stock exchanges this year and was earlier expected to raise as much as $1 billion in its initial public offering.

Elegbe’s story began with an observation. Up until 2002, Nigerians were carrying piles of cash with them to pay for everything from groceries, cell phones to cars.

Back then, debit and credit cards were scarce as were point-of-sale (POS) machines. ATMs were also few and far between and each could be used only by customers of one bank as Nigeria lacked the infrastructure for interbank connectivity.

As a result, people spent hours in banking halls queuing for cash, or simply kept cash at home.

Elegbe saw the unmet need and launched Interswitch to close the gap.

The company built the first interbank transaction switching and payment processing infrastructure in Nigeria, which enabled interbank sharing and the first real-time POS system.

Interswitch Paydirect platform revolutionized revenue collection for governments and large companies while its online payment gateway, Webpay, opened the way for e-commerce in Nigeria.

In 2008, Interswitch launched Verve, which has become Nigeria’s most widely used card brand.

The next year in 2009, the company introduced Quickteller, an online payment platform that is accessible via a wide variety of digital and physical channels. As of today, the platform has more than 15 million users.

Interswitch’s recent innovation is Paycode, which enables cardless transactions such as ATM withdrawals and POS payments, using a digital token.

The company is also helping process contactless payments in Africa, and is upgrading the system to allow consumers to scan “quick response” barcodes from their cellphones.

You can read more about Interswitch here.

Read full article

Simon Ateba
Simon Ateba
Based in Washington, District of Columbia, United States of America, Simon leads a brilliant team of reporters, freelance journalists, analysts, researchers and contributors from around the world to run TODAY NEWS AFRICA as editor-in-chief. Simon Ateba's journalistic experience spans over 10 years and covers many beats, including business and investment, information technology, politics, diplomacy, human rights, science reporting and much more. Write him: [email protected]

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Now

MOST POPULAR

U.S. coronavirus infections break record, hit nearly 46,000 in a single day

The United States recorded nearly 46,000 new coronavirus infections on Friday, the highest number in a single day since the pandemic...

SEE IT: Certified true copy of the conviction of Nigeria’s House of Representatives Speaker Femi Gbajabiamila in the United States for $25,000 theft

The Speaker of the Nigerian House of Representatives Femi Gbajabiamila was convicted in the state of Georgia in the United States...

UPDATED: Wife of dead Nigerian Senator Bayo Osinowo recovering from COVID-19 as son beats the disease

Alhaja Mariam Osinowo, the wife of Senator Bayo Osinowo who passed away on Monday, is recovering from the novel coronavirus, family...

Followers of popular African prophet TB Joshua claim COVID-19 and global economic devastation confirm his prophecy on humility

The outbreak of COVID-19 has "brought this nation to its knees," Dr Robert Redfield, director of the US Centers for Disease...

A coronavirus vaccine from Africa by Africans and for Africans is being discussed at the African Union

A coronavirus vaccine from Africa, by Africans and for Africans and the world is being discussed at the African Union. On...
- Advertisement -

LATEST STORIES

Daily coronavirus infections in U.S. surpass 50,000 for first time

New reported coronavirus infections in the United States surpassed 50,000 on Wednesday for the first time, with California reporting record 9,740 new...

African Development Bank names former President of Ireland and two legal experts to lead independent investigation into allegations of corruption against Akinwumi Adesina

The African Development Bank has named a former President of Ireland, a former attorney general in The Gambia and a Washington...

António Guterres warns the world is in turmoil

United Nations Secretary General António Guterres warned in an opinion piece on Wednesday that the world was in turmoil.

COVID-19 infections top 400k in Africa as death toll surpasses 10k and WHO warns pandemic accelerating dangerously

The number of people who have contracted COVID-19 in Africa surpassed 400,000 on Wednesday, as death toll exceeded 10,000, data from...

Human Rights Watch calls on new President Lazarus Chakwera to reset Malawi’s human rights record

Malawi’s new president, Lazarus Chakwera, should use his electoral victory as an opportunity to reset the country’s human rights record, Human...

[/read_more]

Read full article

error: Alert: Content is protected !!
Share
Tweet
Share
Pin
WhatsApp