Visa enters strategic partnership with Interswitch on digital payment across Africa
Visa Inc., the global leader in digital payments is set to acquire a significant minority equity stake in Interswitch Limited, Nigeria’s leading technology-driven company renowned for its digitisation of payments in Nigeria and other countries in Africa.
This is a major part of a strategic partnership agreement between the two companies to further advance the digital payments ecosystem across the continent.
While announcing the epochal move, Mitchell Elegbe, Founder and Chief Executive of Interswitch, said: “Sub-Saharan Africa is the fastest growing payments market in the world, with growth driven by a young and dynamic population, rapidly evolving consumer behaviour, and an increasing desire for payment solutions that can be accepted across the continent and abroad. I am delighted that Interswitch has formed a partnership with Visa, with whom we plan to drive the next phase of transformation in the African payments landscape.”
On his own part, Andrew Torre, Regional President CEMEA, Visa, said: “Africa is a priority region for us, and we continually seek strategic partnerships with local players to further strengthen our leadership position and enhance the payments ecosystem across the continent. This partnership aligns with our global strategy to work with and invest in innovative partners, and we look forward to working with Interswitch to provide new consumer and merchant experiences and support the rapid growth of digital commerce across Africa.”
Corroborating the preceding statements, Babatunde Soyoye, Helios’s co-founder and Managing Partner, noted: “A strategic investment by Visa, the world’s leader in digital payments, into Interswitch is a substantial endorsement of the company’s expertise in African payments. As an active investor in leading African payments businesses, we see tremendous opportunities to digitise payments across the continent and have worked closely with Interswitch’s management team to build a high quality and scalable platform geared towards addressing some of these opportunities. We look forward to further collaboration with the company alongside Visa.”
By this development, Visa will join globally renowned investors, Helios Investment Partners,TA Associates and IFC, as shareholders in Interswitch, alongside company management, an investment, which industry analysts believe would make Interswitch one of the most valuable African FinTech businesses with a valuation of not less than US$1 billion.
The transaction is, however, subject to the relevant regulatory approvals and is expected to close by the first quarter of 2020.
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