Interswitch, a leading integrated payment processing and transaction switching firm in Nigeria has created a holding called interswitch Transnational Holdings while announcing the separation of its two core units: Verve and interswitch Switching Processing into independent businesses.
The verve business scope includes payment card solution, while the Interswitch switching and processing will cater for transaction switching business.
Giving reasons for the spin off, Eyioma Anaba, Marketing Head, Interswitch said the decision is in line with the company’s moves to consolidate its growth across the continent of Africa.
“The rationale for separation is driven by Interswitch’s strategy to orchestrate the next stage of sustainable growth through empowering the various line businesses to broaden and deepen their solution and service offerings to better serve their customers across Africa”, says Anaba.
He also added that the separation will enable the firm’s card transaction business, Verve to leverage to a great extent its recent strategic alliance with the ‘Discover’ network which will open new business opportunities in over 185 countries around the world.
In a similar vein, Anaba noted that the new arrangement will also fortify Interswitch Switching and Processing to play effective in its card-agnostic pureplay switching services and third party transaction processing like Mastercard, Visa, Union Pay and Verve capabilities across the region.
Speaking on the major restructuring, Mitchell Elegbe, Group Managing Director and Chief Executive Officer of Interswitch said the corporate governance restructuring was germane to enriching customer experience and positioning the company for different sectors it serves.
“It has always been our desire to evolve into an integrated payments holding business where the various parts of the business are driven to deepen and broaden their relationships with their various customers by creating innovative products and services of real value. Creating the right governance structure to herald this new phase of sustainable growth has been the focus of the board and management in the last few months.
I am elated that we have successfully completed this separation which takes immediate effect”, says Elegbe Transaction Switching and Processing which is connected to all 20 banks in Nigeria including 7 Microfinance institutions and 16 Mobile Money operators is the core switching and processing platform of Interswitch which hain the last 10 years has been offering issuers, acquirers, card schemes and networks with array of services which include transaction switching, payment processing, settlement reporting services.
“The company will continue to provide these services with a focus on multiple markets, while also enhancing customer experience with product innovation and extensions, at the least costs” says Interswitch.
The company also noted that the switch processes local and international transactions originating from payment cards such as UnionPay of China, MasterCard, VISA and Discover Financial Services (Discover and Diners Club).
Verve on the other hand has over 20 million cards in circulation and access to over 119,631 Points of Sale, POS, 11,287 ATMs and over 1,000 online merchants. Verve has been developed with unique value added services available to cardholders in Nigeria, including loyalty and Reward Money at specific merchant locations.
Akeem Lawal who is to head the new caved out Interswitch Switching and Processing has over 15 years experience in electronic payments processing, payment cards business, implementation and management of projects in the financial services sector and ICT. He is a fellow of Archbishop Tutu African Leadership Institute for Young African leaders.
Charles Ifedi , the new helmsman of Verve was a member of the project team that developed the business plan at the start of Interswitch’s operations in 2001. He has over 14 years experience in various positions including: managing acquisitions and expansion into various markets and has worked with PWC, Accenture in Nigeria as well as American Express in the UK and other countries.
Interswitch Limited is an integrated transaction and payment processing company with a business footprint that covers the provision of shared, integrated e-payment solutions for financial and non-financial institutions, enables electronic payments to facilitate e-commerce, and provides value-added services as well as real-time online electronic reporting and monitoring to various corporate organizations. Interswitch has continued to develop and improve on existing products and services to meet the needs of various industries.
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