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Interswitch is seeking to operate a Payment Service Bank (PSB) licence from the Central Bank of Nigeria (CBN) after merging with mobile money provider M-Kudi.
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The merger is contingent on regulatory approval and highlights a new push by Interswitch to expand beyond traditional payment services. M-Kudi is a prominent mobile money provider.
Other notable mergers and acquisitions in the Nigerian banking sector include the acquisition of Intercontinental Bank by Access Bank in 2011, the merger between Unity Bank and Bank of Commerce and Development in 2015, and the acquisition of Mainstreet Bank by Skye Bank (now Polaris Bank) in 2014.27
Interswitch is backed by Visa and the merger with Kudi is a strategic move to obtain a PSB license allowing it to broaden its financial services including holding customer deposits and offering non-payment services.
The Interswitch Group is one of Africa’s leading financial technology and integrated payments solution providers. In 2023, it announced the receipt of a Payments Service Holding Company (PSHC) License issued by the CBN coinciding with its 20th anniversary.
