Left to Right: Rao, Snr Vice President, MEASA at ACI Worldwide; Mitchell Elegbe, Founder and Group Managing Director of Interswitch Group and Jonah Adams, Managing Director of Digital Infrastructure and Managed Services (Interswitch Systegra) at the Interswitch and ACI Worldwide Customer Engagement Session held in Lagos.
Press Office: Interswitch
Digital transformation is reshaping the global financial landscape, and Africa is actively participating in this revolution. Two industry giants, Interswitch and ACI Worldwide, are leading this shift and are committed to enhancing digital payments infrastructure across the African continent.
The partnership between Interswitch, one of Africa’s leading integrated payments and digital commerce companies, and ACI Worldwide, a global provider of real-time electronic payment and banking solutions, is set to accelerate the continent’s payments modernisation journey, driving financial inclusion at an unprecedented scale.
According to ACI Worldwide’s 2024 Prime Time for Real-Time report, Africa had the highest real-time share of electronic payments in 2023, accounting for 40% with 8.2 billion real-time payment transactions. This figure is projected to reach 21.7 billion by 2028, a 2023-2028 CAGR of 21.2%. This compelling data demonstrates the real-time payment growth potential across Africa driven by a surging population and robust GDP growth.
At the core of the partnership is Interswitch’s deep understanding of the African market combined with ACI Worldwide’s expertise in developing comprehensive, global payment solutions. This synergy ensures that the technological advancements introduced are not only cutting-edge but also tailored to meet the specific needs of African businesses, marking a significant stride towards addressing unique challenges that have historically impeded the scalability of companies in the region, such as limited access to efficient, secure, and affordable payment systems.
This partnership will further facilitate the modernisation of payment systems, translating into several tangible benefits for businesses, including accelerated financial transaction processing and enhanced efficiency and customer satisfaction. The partnership will also herald an improved level of security and trust in electronic transactions that can significantly mitigate the prevalence of fraud, a critical concern for businesses and consumers alike. Furthermore, companies can tap into new market segments and drive inclusivity by broadening consumer payment options, particularly for unbanked and underbanked populations.
Beyond operational efficiencies and market expansion opportunities, the partnership is poised to impact the profitability of businesses directly. Adopting robust, modern payment solutions can significantly lower transaction costs and operational expenses, and by leveraging data analytics capabilities embedded in these systems, businesses can gain insightful analytics into consumers behavior, enabling them to refine their product offerings, pricing strategies, and marketing efforts. Consequently, companies stand to increase their revenue streams and optimise expenditure, culminating in enhanced profitability.
The partnership promises to unlock countless opportunities for Africa’s financial services sector. Collective efforts are focused on deploying state-of-the-art solutions to upgrade payment systems for banks, Savings and Credit Cooperative Organizations (SACCO), fintechs, and other financial entities across Africa. By leveraging mobile technology and innovative payment solutions, banks and fintechs can reach previously underserved communities, promoting financial inclusion. This broader accessibility benefits individuals and opens up new markets for financial institutions, catalysing growth.
Following a successful kickoff event in Lagos, Nigeria, the partnership was recently highlighted during a second stakeholder engagement session in Nairobi, Kenya. Speaking at the event in Kenya, Peter Kawumi, MD, Interswitch East Africa, said, “At Interswitch, we are committed to transforming the financial landscape across Africa. Our partnership with ACI Worldwide enables us to leverage cutting-edge technology to create a robust digital payments ecosystem. This collaboration is not just about improving transactions; it’s about empowering businesses, fostering financial inclusion, and driving economic growth across the continent.”
In a presentation on ‘The vision of ACI for the African Financial Service Sector,’ Santosh Rao, Senior Vice President, MEASA, ACI Worldwide, said, “Our partnership with Interswitch marks a significant step forward in the modernisation of Africa’s payment infrastructure. By combining our expertise in real-time payments with Interswitch’s deep understanding of the African market, we are creating a future where seamless, secure, and efficient digital transactions are the norm. This initiative will unlock unprecedented opportunities for financial institutions and businesses across East Africa.”
Several financial institutions and fintech companies across East Africa are already witnessing the benefits of this partnership. For example, SACCOs in Kenya use these advanced payment solutions to provide their members faster and more secure transactions, thereby improving member satisfaction and loyalty. In Nigeria, fintech companies and other financial institutions are leveraging the latest infrastructure developments to roll out cutting-edge mobile payment solutions. These achievements underscore the transformative potential of the partnership between Interswitch and ACI Worldwide, highlighting how strategic collaborations can drive financial inclusion and revolutionise the payment ecosystem.
The partnership between Interswitch and ACI Worldwide is more than a business collaboration; it’s a catalyst for change in Africa’s economic landscape. Through continuous innovation and a commitment to excellence, these industry leaders are not just transforming payment methods but driving sustainable growth and profitability across the continent.
The path to a fully digital financial ecosystem is well underway. These efforts will undoubtedly have a far-reaching impact, leading to a new era of growth and prosperity for Africa.
