International Finance Corporation (IFC), a member of the World Bank Group, last week announced an investment of $10.5million in Interswitch Limited to help consumers at all levels gain improved, low-cost access to financial services. IFC’s investment is part of a broader acquisition by an investment syndicate that includes Helios Investment Partners and Adievo Capital Partners.
IFC’s investment will support interswitch’s growth plans and regional expansion in Africa. Interswitch is a Nigerian electronic payment switching and processing company established to aloe shared and interoperable electronic payment services in Nigeria. The project will allow Interswitch offers better access to easier forms of electronic payments and reduce cash in circulation, which has been a source of crime, fraud and corruption. It will also make low-income consumers eligible for sophisticated financial services and products.
Mr. Mitchell Elegbe, founder and managing director, Interswitch Limited, said “We value this partnership with IFC that will facilitate electronic payments services to a larger market in Nigeria and sub Saharan Africa.”
Mr. Solomon Adegbie-Quaynor, IFC’s senior country manager, Nigeria, said, “IFC is committed to development that extends access to financial broadly in Nigeria. In partnership with Interswitch, IFC and its co-investors are supporting the government’s vision of a cashless society. This co-investment with Helios and Adievo enables our private equity partners to expand their portfolios through a company that will produce strong development impact.”
Interswitch facilitates card transactions using its infrastructure that links debit, credit and prepaid cards issued by banks to a wide range payment channels including point of sale terminals, automated teller machines and web merchants. Interswitch also operates Verve, a card scheme which enables low-cost, high performance card services to consumers. Interswitch currently has operations in Nigeria and Uganda. IFC is a member of the World Bank Group and it is the largest global development institution focused exclusively on the private sector. The organisation helps developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets.