InterSwitch Limited and Cards Technology Limited have announced the signing of an interconnect memorandum of understanding (MOU). The aim of this partnership is to extend the value available on both networks to Nigerian member banks and their end-users.

By this agreement, the Nigerian ePayment debit cards issued by InterSwitch member banks can be used on all payment terminals (ATMs, POS etc) deployed by banks connected to Cards Technology Limited (CTL) and vice versa. In addition, banks connected to Interswitch who issue MasterCard cards would be able process transactions from these through Interswitch and Cards Technology.

In the bid to ensure that the country becomes a cashless economy, Central Bank of Nigeria (CBN) awarded switching licenses to Cards Technology Limited and InterSwitch Limited to process financial transactions electronically for financial institutions, corporate bodies, utilities and government parastatals.

Cards Technology is a technology company that provides specialized, value-added, transaction processing, switching, card production, card personalization, card management, and financial inter-networking services that connects financial institutions, service providers and merchants to their customers via electronic, mobile and prepaid channels enabling an easy and convenient mode of exchanging value.

Cards Technology also serves as a payment gateway to the global scene by virtue of its MasterCard Member Service Provider-Third Party Processor (MSP-TTP) status by which it has an online real-time connection to over 200 financial institutions and member banks, locally and internationally.

According to the Managing Director of Cards Technology, Ayo Arise, ‘The partnership illustrates the great benefits and added-value to be delivered to end-users as a result of the good relationship that exists between the two companies in the area of electronic financial transaction processing.

The partnership will also go a long way in achieving the present government’s goal of connecting Nigeria to the global information highway as well as benchmark Nigerian banks as major players in international finance.’

He also said that the partnership will astronomically multiply the benefits to be derived from the ongoing banking system consolidation being championed by the CBN.
InterSwitch was built to provide a cost-effective and value-driven superswitch infrastructure through which organisations can provide services to their customers (and receive payment) using multiple channels. The platform runs on an open and scalable transaction and payment processing EFT Software.

This enables payment solutions to be tailored to various organizations and market needs.  This integrated solution suite supports InterSwitch’s focus on providing market/value driven solutions on a timely and continuous basis nationwide. Currently, InterSwitch has an online real-time integration to 28 banks. This connection allows all entities on the InterSwitch network to share hitherto expensive systems like ATMs, Point of Sales Terminals (POS) etc in a non-obtrusive but yet cost effective manner.

The Managing Director of InterSwitch, Mitchell Elegbe, said that the aim of the partnership is to give member banks and the generality of Nigerians the most robust, versatile and effective electronic payment platform.

He further said that the interconnection between both companies is in anticipation of the next stage of the Central Bank of Nigeria reform of payments (after the ongoing consolidation) which according to statements made by the CBN governor, Prof. Charles Soludo, at the inauguration of the National Payments System Committee, will require payment bodies to “… cooperate in the provision of payment services and infrastructure”. Elegbe went on to say that the interconnect between the two switches has been built and is currently undergoing testing and certification.

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