Fintech Company Interswitch Goes Banking, Eyes PSB License Following M-Kudi Merger
Interswitch, a Nigerian fintech company backed by Visa, is pursuing a strategic merger with M-Kudi, a prominent mobile money provider, to obtain a Payment Service Bank (PSB) license from the Central Bank of Nigeria.
This move represents a significant shift for Interswitch, expanding its offerings beyond traditional payment services. By seeking a PSB license, Interswitch aims to evolve into a comprehensive financial services provider, encompassing banking services and strengthening its position in Nigeria’s digital payments market.
This development would enable Interswitch to manage customer deposits and offer a wider range of financial solutions, propelling the company into new opportunities within the banking industry.
With the PSB licence, Interswitch, which brought in $42 million in revenue for its 2023 fiscal year that ended March 31, will be able to receive foreign currencies for its customers and directly offer agency banking services.
The proposed merger of Interswitch with M-Kudi is coming after the Fintech company announced plans to enter into Nigeria’s telecommunications sector after acquiring a Tier 5 MVNO (Mobile Virtual Network Operators) license for ₦500 million ($1.08 million) from the Nigeria Communications Commission (NCC) in May 2023.
Interswitch will ride on the infrastructure of its telco partner to bring value-added services to consumer segments that have been ignored or underserved by the telcos.
The company is reportedly investigating the launch of a low level of capital expenditure virtual telecoms model using the license, combining payments and telecoms services to B2B customers and consumers.
