Unlocking Nigeria's Digital Economy: 16 Leading Payment Switching and Processing Companies
In Nigeria's dynamic financial landscape, payment switching and processing companies are pivotal for seamless digital transactions and fostering financial inclusion. These firms act as intermediaries, facilitating the flow of payments among banks, merchants, and consumers.
Under the CBN payment framework, obtaining a switching license is a notable achievement, with the Central Bank of Nigeria recognizing its significance in driving innovation and expanding access to financial services.
What is a payment switch?
A payment switch is a company connecting financial institutions to enable the smooth flow of value. In Nigeria, the Nigeria Inter-Bank Settlement Systems (NIBSS) serves as the central switch, authenticating and recording transactions.
Payment switching and processing companies form a critical infrastructure for electronic payments, connecting various participants in the payments ecosystem. Their functions include transaction routing, card processing, payment aggregation, and risk management, contributing to the smooth flow of funds across the financial system.
In recent times, an increasing number of Nigerian fintechs have sought this crucial license, bringing the current total to 16. According to the CBN’s database, these 16 companies are licensed to provide switching and processing services in Nigeria.
One noteworthy player, a payment infrastructure company, secured approval in principle to operate under the Switching and Processing license category in May last year. This license enabled the expansion of its transaction switching and processing services, offered to banks and fintechs through its groundbreaking blockchain-based payment network, ZONE.
ZONE: Revolutionizing Payments
ZONE is the first private blockchain payment network, facilitating direct payments from bank to bank. It empowers previously excluded financial institutions, gaining adoption by over 16 commercial banks and payment service banks in Nigeria.
Explore the impact of ZONE and other leading companies as they shape the landscape of electronic payments, contributing to the growth of Nigeria's digital economy.
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