NIGERIA – Interswitch, a Nigerian payments company that is backed by Visa, has announced a pivotal collaboration with OPay through its Interswitch Payment Gateway (IPG).
This integration enables OPay users to seamlessly make direct payments for goods and services on merchants’ websites from their OPay Wallet balance.
This strategic alliance aims to redefine the digital payment experience, providing users with a secure and frictionless payment solution.
The incorporation of OPay into the suite of checkout payment options on the Interswitch Payment Gateway (IPG) adds a new layer of convenience for users, complementing the existing array of payment methods such as Card, Quickteller, Transfer, QR, and USSD.
Muyiwa Asagba, Managing Director of Digital Commerce & Merchant Acquiring (Paymate) at Interswitch, emphasized the significance of this partnership in advancing the growth of digital payments in the country.
“At Interswitch, our commitment is to cater to the evolving needs of consumers and merchants, fostering a more inclusive and dynamic digital payment ecosystem,” he stated.
“Through our latest collaboration with OPay, we are excited to introduce a new dimension of payment convenience to users and merchants.
“This partnership reflects our dedication to introducing innovations that enhance the digital payment experience, and we are eager to witness the positive impact it will have on the entire payment ecosystem.”
The Pay with OPay product is a 2-step process that will bring an extremely convenient payment experience, a closed-loop solution that is secure, with a 100% success rate and stable network uptime. This cutting-edge solution affirms our customer-first and pure excellence in innovation with high adoption within the web payment sector.
Interswitch urges both customers and merchants to embrace this transformative feature, capitalizing on the convenience, security, and flexibility it brings.
Worthy of note is the fact that OPay was recently recognized by Interswitch for its outstanding performance amongst FinTechs in Nigeria at the TechConnect 3.0 event which took place in November.
Interswitch ventures into Nigeria’s telecommunications sector
Meanwhile, Interswitch plans to venture into Nigeria’s telecommunications sector after the acquisition of a Tier 5 MVNO (Mobile Virtual Network Operators) license, which cost ₦500 million (US$1.08 million), from the Nigeria Communications Commission (NCC) in May 2023.
The financial report from the company indicates that it is exploring the launch of a virtual telecoms model that requires a low level of capital expenditure using this new license. This novel approach aims to integrate payment and telecoms services catering to B2B customers as well as consumers.
The Nigerian market, distinguished as Africa’s largest phone market, issues MVNO licenses on a tiered basis, each specifying the services that can be provided. Interswitch, now in possession of the highest tier license, the Tier 5 (unified virtual operator) license, can engage in negotiations with any one of Nigeria’s four telcos.
This enables Interswitch to provide asset-light telecom services in areas that are currently underserved, giving the company a unique advantage and opportunity for growth in the thriving Nigerian market.
Interswitch, the hefty Nigerian payments organization, will capitalize on its telco partner’s infrastructure to introduce value-added services to customer segments previously overlooked or inadequately served by telecommunication companies.
Armed with the newly acquired license, Interswitch is now poised to offer either more affordable 4G or 5G services to Nigerians or extend telecommunication services to the rural areas.
In the previous year, the country’s telecoms sector experienced its first decline in growth in five years, primarily due to a drop in foreign investment leading to a decrease in capital expenditure from existing Nigerian telecoms.
In a bid to encourage competition, the NCC granted 25 MVNO licenses in 2023. Despite being home to 200 million people, only 60% of Nigeria’s population can avail mobile connectivity, with less than 5% having access to 4G and merely 0.8% having access to 5G.
Moreover, to maintain competition in Nigeria’s telecoms sector, the payment startup is expected to introduce novel means of communication and value-added services. The company’s ingenuity and innovation will be key factors in navigating this challenging yet promising sector.
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