Interswitch Group has reported a remarkable financial turnaround, posting ₦137.5 billion in revenue for the year ended March 2025—a 50% surge from the previous year—while swinging from a ₦1.7 billion loss in 2023 to a ₦14.7 billion profit after tax.
The results, disclosed in the company’s regulatory filing on Companies House, underscore a dramatic recovery for one of Africa’s oldest and most influential fintech companies, driven largely by its Verve card scheme and transaction processing businesses.
From Loss to Profit: A Year of Recovery
The 2024 financial performance represents a stunning reversal from 2023, when Interswitch posted a ₦1.7 billion pre-tax loss—a figure driven by foreign exchange volatility as the naira plummeted from around 460 to over 1,300 per dollar, and the lingering effects of a ₦30 billion chargeback fraud incident that rocked the company.
Fast forward to 2024: pre-tax profit climbed to ₦23 billion, profit after tax reached ₦14.7 billion, and gross profit stood at ₦125.8 billion. The turnaround reflects both improved operational performance and the stabilization of external factors that had hammered the business in 2023.
Verve Emerges as Revenue Champion
Perhaps the most striking revelation in Interswitch’s results is the dominant role of Verve, its homegrown card scheme, which has evolved from a domestic payment option into the company’s single largest revenue driver.
Verve contributed 32% of the group’s total revenue—nearly a third—while recording 39% year-on-year growth. This performance is particularly impressive given that Verve recently crossed the 100 million card issuance milestone, cementing its position as Africa’s largest domestic card brand.
Core transaction processing—covering payments switching, settlements, and related services—accounted for another 39% of group revenue, growing 43% year-on-year. Together, transaction-based revenue (including Verve, payments, and telecoms services like airtime and bulk SMS) represented 75% of total revenue.
Non-transaction revenue, which includes software licensing, consulting, and other services, grew even faster—surging 81% year-on-year to reach ₦34.3 billion. This segment now represents 25% of total revenue, reflecting Interswitch’s efforts to diversify beyond pure transaction processing.
Nigeria Still Dominates, But Diversification Begins
While Nigeria remains Interswitch’s cash cow, contributing 90% of total revenue, this represents a modest decline from 94% in 2023. The remaining 10% came from operations in Mauritius, the United Kingdom, and East Africa (Kenya and Uganda).
This slight shift suggests early progress in Interswitch’s pan-African expansion strategy, though the company remains overwhelmingly dependent on the Nigerian market—a potential vulnerability given the country’s economic volatility and regulatory unpredictability.
Strategic Moves: Mobile Money, Exits, and Restructuring
Beyond the numbers, Interswitch made several strategic moves over the past year that signal its evolving priorities:
Mobile Money Push In May 2025, Interswitch secured final approval from the Central Bank of Nigeria for a mobile money operator license for its M-Kudi subsidiary. This move positions the company to compete directly with OPay, PalmPay, and Moniepoint in the red-hot mobile money space—a market segment that has seen explosive growth as millions of Nigerians embrace agent banking and wallet-based transactions.
Strategic Exits In October 2024, Interswitch sold its 20% stake in Gamswitch for ₦1 billion, while its East Africa arm exited its stake in Pesatransact, a merchant-focused digital platform. These moves suggest a strategic refocusing on core markets and capabilities, potentially shedding non-core assets to concentrate resources on high-growth opportunities.
Regulatory Restructuring Interswitch has begun a major restructuring exercise in line with CBN regulations, creating a specialized Payment Service Holding Company (PSHC) that will separate its core infrastructure business from its consumer-facing financial services operations. The company has already secured an operating license for the PSHC, positioning itself for compliance with evolving regulatory requirements.
External Validation and Market Recognition
The strong financial performance was accompanied by external recognition:
- In July 2025, CNBC and Statista named Interswitch among the world’s top 300 fintech companies—a validation of its enduring relevance in a rapidly evolving global fintech landscape.
- Verve’s crossing of the 100 million card milestone earlier this year reinforced Interswitch’s position as a payments infrastructure heavyweight in Africa.
What This Means for Nigerian Fintech
Interswitch’s turnaround carries broader implications for Nigeria’s fintech ecosystem:
1. Resilience of Legacy Players Despite the hype around newer fintech entrants like Flutterwave, Paystack, and the mobile money operators, Interswitch’s results demonstrate that established players with deep infrastructure roots can still thrive and adapt. The company’s 23-year history and relationships with banks, merchants, and regulators remain valuable assets.
2. The Power of Domestic Card Schemes Verve’s performance validates the viability of homegrown payment infrastructure. While Visa and Mastercard dominate globally, Verve has carved out a defensible position by understanding local market dynamics, offering competitive pricing, and benefiting from implicit government support for domestic alternatives.
3. Transaction Volume Remains King Interswitch’s revenue growth closely tracks Nigeria’s shift toward digital payments. As cash usage declines—driven by CBN policies, fintech innovation, and consumer preference—companies that control payment rails and switching infrastructure stand to benefit disproportionately.
4. Diversification is Critical The 81% growth in non-transaction revenue highlights the importance of diversifying beyond pure transaction fees. As competition intensifies and margins compress in payments processing, ancillary services like software, consulting, and value-added offerings provide cushioning and growth opportunities.
Challenges Ahead
Despite the strong results, Interswitch faces significant headwinds:
Competition: Mobile money operators like OPay and Moniepoint are rapidly gaining market share, particularly among underbanked populations. These players offer simpler user experiences and lower barriers to entry than traditional banking infrastructure.
Regulatory Uncertainty: Nigeria’s evolving fintech regulations—from card scheme guidelines to PSHC requirements—create ongoing compliance burdens and strategic uncertainty.
Geographic Concentration: With 90% of revenue still coming from Nigeria, Interswitch remains heavily exposed to naira volatility, policy shifts, and economic instability in a single market.
Technology Disruption: Newer payment methods—from blockchain-based solutions to embedded finance—could disintermediate traditional switching infrastructure over time.
The Road Ahead
Interswitch’s 2024 results represent more than just a financial comeback—they reflect strategic repositioning for the next phase of Africa’s digital payments evolution. The company has demonstrated its ability to weather macroeconomic shocks, leverage its Verve asset effectively, and adapt to regulatory requirements while maintaining profitability.
The mobile money license for M-Kudi could be a game-changer, potentially allowing Interswitch to compete directly for the millions of Nigerians who have embraced wallet-based transactions. Success in this segment could open new revenue streams and reduce dependence on traditional card and POS infrastructure.
As Interswitch moves into 2025, the question is whether it can sustain this growth momentum, successfully navigate the mobile money battlefield, and expand its geographic footprint beyond Nigeria without sacrificing profitability. The 50% revenue growth and ₦14.7 billion profit after tax suggest the company is well-positioned to try.
For now, Interswitch’s turnaround serves as a reminder that in fintech, infrastructure still matters, established relationships retain value, and patient capital combined with operational discipline can outlast the hype cycles that often dominate tech headlines.
What’s your take on Interswitch’s performance? Can they maintain this momentum in the face of mobile money competition? Share your thoughts in the comments.
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