Interswitch to acquire a license to take on mobile money operators
The Visa-backed company's previous market valuation of $1 billion is set to attain new heights.
Nigerian payment giant Interswitch has applied for a Payment Service Bank (PSB) license from the country's financial regulator, following a merger with M-Kudi, a mobile money provider, as it seeks to expand financial inclusion across the country.
Companies with PSB licenses such as 9 PSB use technology and agency banking to mobilize deposits and facilitate transfers from unbanked consumers in rural regions and any other location in Nigeria.
The merger, which is subject to regulatory approval, is seen as a strategic move as it marks Interswitch's expansion beyond its conventional payment service offerings, and demonstrates its intent to take on mobile money operators while targeting users in under-served rural areas where M-Kudi has an established presence.
If the deal goes through, Interswitch, which made $42 million in revenue in its 2023 fiscal year that ended March 31, will be able to create accounts and hold customer deposits, the first time that the fintech would be offering non-payment services.
The Visa-backed company's previous market valuation of $1 billion is set to attain new heights granting it the capacity to receive foreign currencies from its customers and directly offer agency banking services.
