Payment switching and processing service play a critical role in financial sector of any economy as they provide solutions that enable seamless digital transactions and enhance financial inclusion.
These Fintech companies act as intermediaries, routing and processing payments between various entities, including banks, merchants, government institutions and consumers.
The digital economy so much depends on the operations of these companies driving innovation and expanding access to financial services. Owing to their vitality, stitching license is the highest licensed granted to any Fintech Under the CBN payment framework.
What is a payment switch?
Payment switch is software program that transfers payment transactions between several acquirers and Payment Service Providers (PSPs) end-points based on merchant-driven rules.
What is Payment Switching Company?
A payment switching company is a company authorized connects financial institutions to enable the flow of fund from one to the other. A central switch authenticates, approves and keep records of the transactions. In Nigeria, the Nigeria Inter-Bank Settlement Systems (NIBSS) is the central switch.
On the other hand gateways are software platform that link merchants with various endpoints, and their connections are typically fixed and difficult to alter.
A payment switch companies take care of all the processes in a transaction, which include verifying accounts and approving or rejecting transactions. It controls all aspects of payment processing, including acquisition, routing, switching, authentication, and authorisation of transactions through various payment channels leveraging Open Banking.
Payment switching and processing companies provide a critical infrastructure for electronic payments, ensuring the smooth flow of funds across the financial system. They connect various participants in the payments ecosystem, including card issuers, merchant acquirers, and payment gateways. Their core functions include transaction routing, card processing, payment aggregation, and risk management, among others.
Read Also: Mobile Banks to Open Account for Your Small Business in Nigeria
We have compiled the list of payment switching and processing companies in Nigeria
According to data curated from CBN database, there are currently 16 fintech companies licensed as switching and processing services providers in Nigeria:
- Interswitch
- Flutterwave
- PayStack
- Remita Payment Service Limited
- Appzone
- Network International
- eTranzact
- TeamApt Limited (Moniepoint)
- Coralpay
- ChamsWitch
- Terra Switching and Processing
- Arca Payments Company Limited
- Habaripay
- Hydrogen Payment Services Limited
- Unified Payment Services Limited
- Xpress Payment Solutions Limited
Paystack is a leading Nigerian financial technology company that provides digital payment infrastructure for businesses, helping them accept and manage online and offline payments with ease. Its platform supports multiple payment methods—including cards, bank transfers, USSD, and mobile wallets—through developer-friendly tools and secure processing systems. Designed to simplify commerce for startups and established enterprises alike, Paystack enables fast integration, automated reconciliation, and reliable transaction tracking. The company’s growth accelerated after its acquisition by Stripe in 2020, which strengthened its technology base and expanded its reach within Africa’s rapidly evolving digital economy.
As a licensed payment switch in Nigeria, Paystack plays an critical role in connecting merchants, banks, and financial institutions. With authorization from the Central Bank of Nigeria, the company can directly route and process transactions, reducing reliance on intermediaries and improving transaction efficiency. This switching capability enhances payment speed, reliability, and security while supporting the growth of cashless commerce. By strengthening payment infrastructure and expanding access to digital financial services, Paystack contributes to Nigeria’s broader push toward financial inclusion and a more connected digital marketplace. In 2025, PayStack got approval from CBN to expand to Microfinance Bank status.
Appzone is another leading Nigerian financial technology company that provides digital infrastructure for banks and other financial institutions, with a growing focus on payment switching services. The company developed a blockchain-based payment network designed to allow participating institutions to connect and transact directly with one another. Through this system, Appzone supports real-time transaction processing, automated settlement, and efficient reconciliation, helping financial service providers streamline everyday payment operations. Its technology is built to improve interoperability among banks and fintech platforms while offering secure, scalable tools that support Nigeria’s expanding digital payments ecosystem.
As a licensed payment switch by the Central Bank of Nigeria in 2022, Appzone plays an important role in facilitating the flow of electronic transactions across Nigeria. The company routes and processes payments between institutions without depending heavily on external intermediaries. This capability contributes to faster transaction speeds, stronger system reliability, and enhanced security standards. By strengthening the underlying payment infrastructure and encouraging seamless connections between financial institutions, Appzone supports the continued growth of cashless payments and broader access to digital financial services in Nigeria.
Network International
Network International is a global payments technology company that provides transaction processing and digital payment solutions for banks, merchants, and financial institutions. With string presence in Nigeria, the company delivers platforms that support card services, merchant acquiring, and electronic payment acceptance across multiple channels. In the Nigerian market, its infrastructure helps organizations process secure digital transactions while meeting local regulatory and operational standards. By offering scalable systems and integrated payment tools, Network International enables businesses to manage transactions efficiently and deliver smooth payment experiences to customers.
As a payment switch in Nigeria, Network International helps connect financial institutions and payment service providers through reliable transaction routing and processing services. Its systems are designed to support high transaction volumes while maintaining strong security and operational stability. Working within guidelines set by the Central Bank of Nigeria, the company contributes to a more connected and efficient payments ecosystem. This role supports the expansion of electronic payments, encourages innovation in financial services, and strengthens the infrastructure needed for Nigeria’s continued shift toward a digital economy.
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