The inadvertent shift to electronic transactions, orchestrated by the naira redesign policy of the Central Bank of Nigeria (CBN), has propelled a high volume of transactions across fintech platforms. At the end of the first quarter of the year, the result is beginning to trickle in.
Interswitch has announced that it reached a new transaction milestone with over 1 billion transactions processed in the month of March 2023. The threshold, which represents 58% growth over the total volume of transactions the company processed in February, underscores the weight of the naira redesign policy on the nation’s digital transactions in the past few months.
The policy created a high level cash crunch that forced both individuals and businesses to rely on online transfers to execute transactions. With banking platforms overwhelmed, the people turned to neobanks and payment platforms.
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For companies like Interswitch, which processed a total of 2.7 billion transactions in 2019, it’s a turning point.
Mitchell Elegbe, Founder and Group Managing Director, Interswitch, said the company’s focus on innovation has been key to their success, adding that switching 1.2 billion transactions in a single month further reinforces the company’s position as an enabler in the Nigerian payment ecosystem.
“We are thrilled to have processed 1.2 billion transactions in the month of March within Nigeria alone. This milestone is a testament to the trust that our customers have placed in us and our commitment to delivering innovative and secure digital payment solutions across Nigeria and beyond.
“This milestone is one that was made possible by our proactive investment in cutting-edge technologies that truly power the financial landscape. As we continue to grow and expand our operations, we remain committed to driving financial inclusion and helping businesses and individuals unlock the full potential of digital technologies,” he said.
He noted that the success underscores the hard work and dedication of employees of Interswitch and highlights the fact that the firm is on the right track to achieving its set objectives.
Interswitch is poised to continue its growth trajectory by expanding its product offerings, deepening its partnerships, and investing in innovative technologies that propel the growth of digital payments in Africa and beyond.
The high volume of processed payment transactions is believed to cut across all fintech platforms, though most of them are yet to file their report for the last quarter. However, it is not clear if the momentum will be maintained going forward as the CBN is working frantically to pump more cash into circulation, following a Supreme Court judgment annulling its earlier approach to the implementation of the naira redesign policy.