Millions of Nigerians who rely on Verve cards for everyday transactions may soon experience disruptions as a group of payment processors, acquirers, switches, and POS operators have threatened to stop accepting and processing Verve transactions across the country.
The coalition, which includes firms licensed by the Central Bank of Nigeria (CBN), made its position known in separate notices sent to Verve International and its parent company, Interswitch Limited. They allege that certain practices within the Verve ecosystem violate regulatory standards and reduce fair competition in Nigeria’s payment industry.
At the centre of the disagreement is Verve’s transaction routing structure. The operators argue that it channels transactions primarily through Interswitch, limiting the ability of other licensed providers to compete equally. According to them, this setup creates an exclusive system that weakens interoperability and gives Interswitch an unfair advantage in the domestic card market.
They further claim that despite regulatory efforts to open up the payment space, the arrangement has remained unchanged for years. The coalition also accused the companies of charging fees that they believe exceed limits set by existing CBN rules, along with allegations of unauthorized deductions from settlement accounts belonging to various payment participants.
Among their demands are the removal of the current routing structure, an end to exclusive processing arrangements, refunds for disputed deductions, and the introduction of a clearer and more transparent billing system for transaction services. They also insist that operators should be free to choose any licensed switch when processing Verve transactions, rather than being restricted to a single pathway.
Industry groups representing POS operators have echoed these concerns, warning that they may suspend services nationwide if regulators fail to intervene. They cite issues such as alleged monopolistic behaviour, high scheme fees, and unexplained debits as key grievances affecting their operations.
In response, senior officials at Interswitch have rejected the allegations. They maintain that the routing system was introduced to strengthen security within the Verve network and reduce fraudulent activities. According to them, some operators had been bypassing approved channels, making transaction monitoring and fraud detection more difficult.
Interswitch also argued that the system is designed to ensure proper transaction tracking and compliance with established standards, stating that resistance from some stakeholders is linked to enforcement of these rules.
The matter has now been escalated to the Central Bank of Nigeria, which has reportedly invited all parties for discussions aimed at resolving the dispute.
Observers warn that if the standoff continues, it could significantly disrupt Nigeria’s growing digital payments ecosystem, affecting merchants, fintech companies, POS operators, and millions of consumers who depend on electronic payment systems.
As Nigeria continues its push toward a cashless economy, regulators are expected to play a crucial role in preventing any breakdown that could affect nationwide financial transactions.
