It's hard to say which African companies can be considered unicorns, given the continent's ever-expanding market. What is certain, however, is that Interswitch is one of the companies that are exploding in Africa. Founded in Nigeria in 2002, the company has sniffed out the potential of digital payment and made it its specialty. 

Today, Interswitch is the largest intermediary between banks, financial institutions and their customers in Nigeria. So, how did Interswitch manage to make its mark in digital payments in Africa? Who supports Interswitch? What does the future hold for this African unicorn? Follow our guide to find out more about Interswitch, the new player in African digital payments.

Interswitch: an African success story

In terms of mobile payment services, Interswitch is a benchmark in Africa. In fact, it is the most promising African FinTech according to Deloitte. The variety of services offered by the company has enabled it to become one of Africa's very first unicorns. Electronic payment platform, point-of-sale terminals, debit card network and more. Interswitch has succeeded in diversifying into the digital payment sector.

A Nigerian FinTech first and foremost

Founded in 2002 by Mitchell Elegbethe unicorn has withstood the test of time: economic crisis, pandemic, and more. Interswitch stops at nothing, and can now boast of being one of Africa's most important companies.

Its founder, an electrical engineering graduate from the University of Benin, is a true visionary. With a wealth of experience acquired working alongside some of the biggest names in the industry (Schlumberger, Wireline and Testing, Telnet, etc.), Mitchell Elegbe decided to launch his own company in 2002: that's when Interswitch was born. Since then, it's been a great success. Interswitch is THE undisputed leader in mobile payment in Nigeria.

Africa is a continent that still favors cash payments, which is why Mitchell Elegbe decided to invest in the mobile money exchange market: the field is booming and, as a result, very promising. It's a winning bet for the entrepreneur, who has succeeded in attracting a large number of users across the continent. 

Interswitch, for whom?

Interswitch first developed in Nigeria. Africa's most populous country (211 million inhabitants) is a veritable goldmine for investors. A growing population, a boom in new technologies, a population increasingly familiar with cell phones, and so on. Entrepreneurs like Mitchell Elegbe have clearly understood the the potential of the African market and that's why they've decided to invest there.

Interswitch is aimed at all cell phone owners in Nigeria, but also in Kenya, Uganda and the Gambia: having enjoyed real success in its home country, the unicorn is now looking to expand across the continent. Interswitch has succeeded in revolutionizing the daily lives of of over 30 million consumers by simplifying their payment methods.

With the advent of virtual currency and the disappearance of cash, Africa and the whole world are experiencing a major economic turning point. The immense economic and demographic potential of the African continent is attracting more and more investors. Soon, mobile payment will be a habit for the majority of Africans, and Interswitch aims to support this population in this change.

What is Interswitch?

Interswitch enables users to pay via their cell phone or computer. As a result, money transfers are much faster, boosting the local economy. Interswitch users can send money to whomever they likein just a few clicks.

Lately, the unicorn has chosen to diversify by enabling its customers to pay their insurance policy invoices directly via their platform. This is an exceptional time-saver for its users, who no longer need to go to an agency and wait sometimes for long minutes to pay their bills.

Finally, Interswitch has developed a system for blocking bankcards online in the event of theft or fraud. In other words, Interswitch enables its customers tomake instant, secure payments via their application.

Interswitch, express progress

The African market has long been considered unstable. Investors tended to prefer European, Asian and North American markets. However, we are now witnessing a veritable African economic and technological revolutionwith Interswitch as its representative.

One of Africa's first unicorns

As the world's second most populous continent, Africa represents a market of over a billion potential consumers. What's more, as the continent is still developing, there's still a lot of work to be done in attracting major entrepreneurs. Unlike Europe or North America, where the major groups are already comfortably established and very difficult to compete with, the African continent is in the midst of economic construction. Now is the time for investors to step up to the plate and assert their leadership.

This is exactly what Interswitch is achieving. With over thirty million users in Nigeria, the FinTech has succeeded in becoming the leader in the mobile payment market. All the more reason for its creator to hope for a bright future.

Interswitch's IPO

Having achieved such success, FinTech Interswitch dreams of going public. A first attempt was made in 2016 to join the Lagos and London stock exchanges, but the severe recession raging in the country at the time got the better of Interswitch.

On the strength of a collaboration with US giant Visa, Interswitch decided to try again in 2019. However, a now infamous virus arrived and upset the FinTech's plans. It's only a temporary setback, however, as with a a valuation of over one billion dollarsInterswitch has all the cards in hand to achieve its goal.

Powerful partners

With acquisitions that strengthen its value proposition (acquisition of Vanso Limited, a provider of mobile and Internet-based financial technologies, etc.), Interswitch has comfortably established itself on the African market. 

There's no doubt that the company founded by Mitchell Elegbe has enormous potential, as does the market it intends to conquer. That's why a number of major foreign and local groups have chosen to join forces with Interswitch and finance its project. These major players include : 

• Visa
• Helios Investment Partners
• TA Associates
• Adlevo Captial

American giants have understood the importance of the African market (MasterCard and PayPal have invested in Flutterwave and Tala respectively) and are counting on companies like Interswitch to make their mark.

What next?

Even if it's impossible to predict the future, Interswitch's looks pretty prosperous. Specialists agree that the Nigerian unicorn is showing more than encouraging results. For its founder, all that remains is to make the most of the experience.

Given the experience generated by the brand and the know-how of its founder, Interswitch should succeed in maintaining its monopoly on the online payment market. The African unicorn has been a pioneer in the field since 2002. The innovative and ambitious spirit that characterized it back then is still very much intact, as it plans to diversify its services and conquer new markets. diversify its services and conquer new markets.

In addition to this experience, Interswitch is based on a continent in full expansion. Africa is the world's fastest-growing demographic continent, with an estimated 4 billion inhabitants by 2100. That's just as many potential consumers that Interswitch intends to seduce.

In other words, all the signs are green for the new unicorn star of the African continent. The next major objective is to go public to capitalize on all the efforts already made.

Interswitch: key information

In 2020, FinTech Interswitch had 710 employees, the majority of whom work in Lagos, the company's headquarters.

Prior to its second attempt to go public in 2020, Interswitch reported sales of nearly $500 million.

Interswitch has tried twice to go public (Lagos and London). Unfortunately, the first attempt was aborted due to the financial crisis in Nigeria, and the second due to the Covid health crisis.

Interswitch is undeniably a company with a bright future. Its first aim is to go public, confirming its meteoric rise and its status as one of Africa's leading companies. The next objective is to establish itself on a continental scale, as it has succeeded in doing in its own country.

Interswitch's future looks more than bright. It can count on a densely populated and developing continent to multiply its user base and change the payment habits of its inhabitants, who are experiencing a veritable economic and technological upheaval.

The gateway to Africa's payment Ecosystem (The gateway to Africa's payment ecosystem).