Connect with us

E-Financial

Interswitch, Paynet Group Form Business Alliance

Published

on

Kindly share this post

Interswitch Transnational Holding , the leading pan-African integrated payments company, has sealed a partnership agreement with the Paynet Group (Paynet), East Africa’s leading multi-institutional payments provider, to combine its businesses.

Under the agreement, Interswitch will acquire a majority shareholding in Paynet Group and Paynet’s existing shareholders will become shareholders of the Interswitch Group.

Key highlights of the agreement shows that Bernard Matthewman, current CEO of Paynet, will stay on as CEO.

Meanwhile, the transaction creates an unrivalled payment infrastructure across East and West Africa. The new combined network will connect over 100 financial institutions.

Also, Interswitch and Paynet expansion accelerated; now present in nine African countries.

This supports Interswitch’s strategic objective of becoming the truly pan-African electronic transactions business.

Both companies said, that the deal will enable them take advantage of fast-growing East-West Africa trade and continue to provide their customers, both businesses and government, with a trusted partner.

The new company will create an unrivalled payment infrastructure across East and West Africa, uniting financial institutions on a single network, integrating transaction solutions seamlessly into businesses, and creating a secure and convenient way to make cross-border transactions.

Also, the new combined network will connect over 100 financial institutions in West and East Africa.

Paynet was founded in Kenya in 2003 by the current senior management team, since then it has provided services to some 70 financial institutions and over 2,000 companies as well as numerous public sector entities. Its offering comprises three brands, Paynet, PesaPoint and Electronic Financial Technologies (EFT).

PesaPoint is found at 1,200ATM locations, some of which are owned by the company, and over 1,300 agent locations in Kenya.

Mitchell Elegbe, group managing director and chief executive officer of Interswitch, said: “To build a successful payments business customers are looking for trust, scale, efficiency and a proven track record of execution. This partnership will significantly expand our footprint in East Africa and uniquely positions Interswitch in the market. The new business will provide comprehensive solutions for regional and international businesses looking to take advantage of growth opportunities in Africa.

“Paynet have done a great job at building an innovative and trusted payments company in East Africa and we are confident that between us we can drive growth by continuing to provide payment solutions that are highly tailored to the African market. Bernard Matthewman will remain as Chief Executive of the Paynet business and we intend to leverage the strength of Paynet’s existing management team. ”

On his part, Bernard Matthewman, CEO of Paynet, said: “The payments market in East Africa is moving rapidly into an era where specific products are required for sectors like transport, health, government and county payments as well as the move towards secure Internet based payments. Paynet has been looking for a partner that has both products and experience in these areas so we can rapidly deliver them in the most efficient manner. Interswitch has the most comprehensive range of products of any provider we have seen in an emerging market and this alongside their existing presence in Uganda provides us with additional strength as we continue to grow in East Africa.”

The deal, which is subject to regulatory approvals, comes at a time when both governments and private institutions across Africa are looking to cashless solutions and financial inclusion to accelerate economic growth and drive business efficiency.

Interswitch is a Pan-African, integrated payment and transaction processing company that provides technology integration, advisory services, payment infrastructure to government, banks and corporate organizations.

It processes transactions from various channels namely: ATMs, Mobile, Point of sale, Online (web) and IVR.


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

Published

on

Kindly share this post

“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


Kindly share this post
Continue Reading

E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

Published

on

Kindly share this post

Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


Kindly share this post
Continue Reading

E-Financial

CBN Urges Banks to Expedite Action on Recapitalisation

Published

on

Kindly share this post

Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


Kindly share this post
Continue Reading

Trending