Millions of Nigerians who rely on Verve cards for everyday payments may soon experience disruptions, as a coalition of payment processors, acquirers, switches, and POS operators has threatened to halt the acceptance and processing of Verve transactions nationwide.
The coalition, comprising firms licensed by the Central Bank of Nigeria (CBN), issued separate notices to Verve International and its parent company, Interswitch Limited, alleging regulatory breaches and anti competitive practices within the country’s payment system.
The operators warned that the suspension would only be avoided if Verve and Interswitch make binding commitments to address their concerns within a set timeframe.
At the centre of the dispute is Verve’s transaction routing structure, which the coalition says forces payments through Interswitch, reducing competition among payment service providers. They argued that this setup creates exclusivity that weakens interoperability and gives Interswitch an unfair dominance in the local card market.
They further alleged that the arrangement has persisted despite regulatory moves to open up the payment ecosystem, and also claimed that fees charged by the companies exceed limits allowed under CBN rules.
The coalition also raised concerns over alleged unauthorized deductions from settlement accounts belonging to acquirers, processors, issuers, and switches, warning that such practices expose operators to financial risks.
Among their demands are the removal of the routing policy, an end to exclusive processing arrangements, refunds for disputed deductions, and the introduction of a transparent billing system for transaction services.
They also insisted that issuers and acquirers should be allowed to route Verve transactions through any licensed switch, instead of being tied to a single network, citing global card schemes like Visa and Mastercard as examples of more open systems.
The Association of Point of Sale Service Providers supported the position, warning that its members could suspend operations nationwide if regulators fail to intervene. It also cited issues including alleged monopoly behaviour, excessive fees, abuse of market dominance, and unauthorized settlement debits.
In response, senior officials at Interswitch rejected the allegations, insisting that the routing policy was introduced to safeguard the Verve network and reduce fraud exposure.
According to the company, some processors had been bypassing approved channels, making it difficult to track and investigate suspicious transactions.
Interswitch maintained that the measures were necessary for security and transaction traceability, adding that resistance from some operators is linked to enforcement of proper payment standards.
The company also confirmed that the dispute has been escalated to the Central Bank of Nigeria, which has reportedly invited all parties for discussions aimed at resolution.
Stakeholders have warned that a prolonged conflict could disrupt Nigeria’s fast growing digital payments ecosystem, affecting merchants, fintech firms, POS operators, businesses, and millions of consumers.
As Nigeria continues to push for cashless transactions and broader financial inclusion, regulators are expected to play a decisive role in preventing any nationwide disruption to electronic payment services.
