Ten years ago, Nigeria was not on the radar of the world’s biggest international payment players, such as MasterCard and Visa, who saw our country as high risk. At the time, Interswitch was deploying the switching infrastructure that now connects all the banks in Nigeria and rolled out a national network of ATMs and POS terminals. Interswitch recognised that in order for Nigeria to diversify its economy, and for growth to take hold in the non-oil sector, Nigerians needed access to modern electronic banking and payment technologies. We also believed that there was no reason why Nigeria could not develop a best-in-class payment card tailored to the Nigerian market.

Now, Nigeria is Africa’s biggest economy, everyone is scrambling to enter the market and the impact electronic payment services have had in spurring growth is unquestioned. In the face of competition, we will continue to improve Verve as a product, offer Nigerians the best terms and demonstrate why we were right to develop our own payment card.



FTA IMAGES| Charles Ifedi , Mitchell Elegbe MD, Interswitch and Akeem Lawal, Director Interswitch

In your efforts to make Verve card globally accepted, a co-branding deal with MasterCard ensued, which led to the issuance of MasterCard Verve debit card. The deal had since collapsed and the parties have adopted different strategies to grow their portfolios. What went wrong with the co-branding deal?  Was the deal destined to fail from inception? What other efforts have Verve International decided on to internationalize the scheme acceptance beyond Nigeria?

MasterCard and Verve jointly agreed to end our formal co-branding agreement, as it no longer meet the long-term objectives of both organisations. However, Verve remained committed to growing international acceptance of Verve cards. In 2013, Verve signed a deal with international payment giant Discover Financial Services, owners of the Discover card, Diners Club and the PULSE network. As a result of this agreement, which is currently being implemented, Verve cardholders, over 18 million, will gain access to Discover’s network in over 185 countries, including key markets such as the US, UK, China, Japan, South Korea and India.

What is Verve card’s footprint in Nigeria's e-payment market now? How many banks have issued Verve card? How many Verve cards are in circulation? What is Verve card’s market share in relation to MasterCard, VISA, Genesis and Freedom cards?

Verve has the largest market share in terms of cards issued. There are approximately 30 million payment cards in circulation in Nigeria and over 18 million of them are branded Verve. Currently, 19 out of the 21 banks in Nigeria issue Verve cards. Micro-finance banks (MFBs) and mobile money operators also issue verve.

Congratulations on the recent announcement that Gambia has adopted Verve card as national payment card. When would Verve International commence operations in Gambia? How many banks are you working with? What is your relationship with Gambia’s Reserve Bank?

As you would expect, we do not discuss publicly any of our tender processes until it is appropriate. However, we believe Verve is well placed to become a truly homegrown pan-African payment card. We want to replicate the success we have had in extending modern payment technologies to millions of unbanked Nigerians across Africa, in doing so helping them to take advantage of economic growth in their own countries.

Your parent company has a subsidiary in Uganda, East Africa. Are there plans to migrate Verve to Uganda?

We believe Verve is well placed to become a truly homegrown pan-African payment card. We want to replicate the success we have had in extending modern payment technologies to millions of unbanked Nigerians across Africa, in doing so helping them to take advantage of economic growth in their own countries. As such, we are currently engaging banks across Africa on the issuance of Verve cards. Uganda is a market in which we hope to issue Verve cards.  However as you would expect, we do not discuss publicly any of our tender processes until appropriate.

Nigeria's Minister of Finance and coordinating minister of the economy, Dr. Ngozi Okonjo-Iweala alleged that Verve got the offer to collaborate with National Identity Management Commission [NIMC] on the national ID project but that you rejected it. The argument was that Verve claimed the project offered little or no economic benefits to its operations. What is the true position? Did Verve apply for the project? What is the current situation?

Again, as you would expect, we cannot discuss publicly any of our confidential interactions with NIMC until both parties believe it is appropriate.

You recently signed a deal with a processor in Ghana to facilitate the issuance and acceptance of Verve through leading banks in Ghana. Considering the huge population of Nigerian youths in Ghanaian colleges, one expects that you would accord this project top priority. What is delaying the project?

Again, we do not discuss publicly any of our tender processes until appropriate.

Are you considering changing the ownership structure of Verve in order to allow banks own stakes in the scheme, which would make it a truly bank card association like Visa, MasterCard and Union Pay?

When, and if the company has any strategic update to give on the ownership structure of Verve, such would be announced.

Do you think that Verve scheme can withstand the onslaught of global payment card brands?

We have worked hard to make sure that Verve is an extremely competitive product for domestic card use. New competition from international payment cards who have now decided to enter the Nigerian market only encourages us to work harder. We are focused on doing what we do best and are pursuing a number of agreements to improve the Verve offer.

For example, the agreement signed in 2013 with Discover Financial Services, which will enable Verve customers to use their cards in over 185 countries, including the US, UK, China, Japan, South Korea and India, makes Verve more competitive and attractive to Nigerians who are increasingly spending abroad. Verve remains the most ubiquitous and convenient card for use within Nigeria. 

http://www.financialtechnologyafrica.com/smart-executives/1684/we-are-right-to-develop-our-payment-card-charles-ifedi-ceo-verve-card-international/