Millions of Nigerians who use Verve cards for daily transactions could face payment disruptions as a coalition of payment processors, acquirers, switches, and Point of Sale (POS) operators has threatened to suspend the acceptance and processing of Verve card transactions across the country.
The coalition, made up of several firms licensed by the Central Bank of Nigeria (CBN), issued the warning in separate communications addressed to Verve International and its parent company, Interswitch Limited. The operators accused the companies of engaging in practices that allegedly violate regulatory guidelines and undermine fair competition within Nigeria’s payment ecosystem.
According to the coalition, the proposed suspension would only be avoided if Verve and Interswitch provide specific commitments to address the concerns raised within a stipulated timeframe.
The dispute centres on Verve’s transaction routing policy, which the operators claim effectively channels transactions through Interswitch, limiting competition among payment service providers. The coalition argued that the arrangement has created a form of exclusivity that restricts interoperability and gives Interswitch an unfair advantage in the domestic card payment market.
The operators further alleged that the companies have maintained these exclusive arrangements for years despite regulatory efforts aimed at encouraging a more open and competitive payment system. They also accused Verve and Interswitch of imposing fees that exceed limits permitted under existing CBN regulations.
Another major concern raised by the coalition involves alleged unauthorised deductions from settlement accounts belonging to acquirers, processors, issuers, and switches. The group claimed that these deductions expose participating institutions to financial and operational risks.
Among its demands, the coalition is seeking the immediate withdrawal of the transaction routing policy, an end to all forms of routing and processing exclusivity, refunds for any unauthorised deductions, and the introduction of a transparent invoicing system for transaction processing services.
The operators also insisted that issuers and acquirers should be free to process Verve card transactions through any licensed switch of their choice rather than being compelled to route them through a single operator. They noted that global card schemes such as Visa and Mastercard operate under more open frameworks that allow multiple processing pathways.
The Association of Point of Sale Service Providers echoed similar concerns, warning that its members could suspend operations nationwide if regulators fail to intervene. The association listed several issues, including alleged monopolistic practices, abuse of market dominance, excessive scheme fees, and unauthorised debits on settlement accounts.
In response, senior officials at Interswitch rejected the allegations, arguing that the routing policy was introduced to protect the integrity of the Verve payment network and reduce fraud risks. According to company sources, some processors had been bypassing approved transaction routes, making it difficult to monitor and investigate suspicious activities.
Interswitch maintained that the measures were necessary to ensure transaction traceability and security, adding that the resistance from some operators stems from efforts to enforce compliance with established payment standards.
The company also 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 significant implications for Nigeria’s digital payments sector, affecting merchants, fintech companies, POS operators, businesses, and millions of consumers who depend on electronic payment channels.
With Nigeria continuing to promote cashless transactions and financial inclusion, regulators are expected to play a key role in ensuring that the disagreement does not result in widespread disruptions to payment services across the country.
READ ALSO:
- Paystack, Flutterwave Lead Push to Suspend Verve Card Transactions
- Meta Introduces Paid Plans for Facebook, Instagram and WhatsApp
- 2027: Kwankwaso Backs Peter Obi for Presidency, Predicts Election Victory
- Makinde Visits Families of Abducted Oyo Pupils, Promises Safe Rescue
- AIG Kanayo Uzuegbu Dies After Battle With Cancer
