Millions of Nigerians who rely on Verve cards for everyday transactions could face significant payment disruptions as a coalition of payment processors, acquirers, switches, and Point of Sale (POS) operators has threatened to halt the acceptance and processing of Verve card transactions nationwide.
The coalition, which comprises several firms licensed by the Central Bank of Nigeria (CBN), issued separate notices to Verve International and its parent company, Interswitch Limited, accusing them of practices that allegedly violate regulatory guidelines and stifle fair competition within Nigeria’s payment ecosystem.
According to the operators, the planned suspension will only be averted if Verve and Interswitch provide firm commitments to address the concerns raised within a specified timeframe.
Dispute Over Transaction Routing
At the heart of the disagreement is Verve’s transaction routing policy. The coalition claims the policy effectively directs transactions through Interswitch, limiting competition among payment service providers and creating a form of exclusivity that undermines interoperability within the industry.
The operators argue that the arrangement gives Interswitch an unfair advantage in Nigeria’s domestic card payment market and runs contrary to regulatory efforts aimed at fostering a more open and competitive payments landscape.
They further allege that the exclusive routing system has persisted for years despite initiatives designed to encourage greater participation from multiple service providers. The coalition also accused Verve and Interswitch of charging fees that exceed limits set by existing CBN regulations.
Allegations of Unauthorised Deductions
Another major issue raised by the coalition concerns alleged unauthorised deductions from settlement accounts belonging to acquirers, processors,issuers and acquirers should be free to process Verve card transactions through any licensed switch of their choice rather than being required to route them through a single provider. They point out that global card schemes such as Visa and Mastercard operate under more open systems that support multiple processing pathways.POS Operators Raise AlarmThe Association of Point of Sale Service Providers has echoed similar concerns, warning that its members may suspend operations nationwide if regulators fail to intervene.The association cited alleged monopolistic practices, abuse of market dominance, excessive scheme fees, and unauthorised debits on settlement accounts as key reasons for its position.Interswitch RespondsInterswitch has rejected the allegations, maintaining that the routing policy was introduced to protect the integrity of the Verve payment network and reduce fraud risks.According to company officials, some processors had been bypassing approved transaction routes, making it more difficult to track and investigate suspicious activities. The company argued that the policy is necessary to ensure transaction traceability, security, and compliance with established payment standards.Interswitch further stated that resistance from some operators is linked to efforts aimed at enforcing compliance across the ecosystem.
CBN Steps InThe company disclosed that the matter has been referred to the Central Bank of Nigeria, which has reportedly invited all parties for discussions aimed at resolving the dispute.Industry stakeholders warn that a prolonged standoff could have far-reaching consequences for Nigeria’s digital payments sector, potentially affecting merchants, fintech companies, POS operators, businesses, and millions of consumers who depend on electronic payment channels.As Nigeria continues to push for a cashless economy and greater financial inclusion, regulators are expected to play a crucial role in ensuring that the disagreement does not lead to widespread disruptions in payment services across the country.
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