
Interswitch turns to N14.7bn after-tax profit from previous loss
Interswitch has recorded a financial turnaround by N14.7 billion after-tax profit in the period ended March 2025 from the previous year’s N1.7 billion loss before tax.
The performance marks a 2024 recovery from a challenging 2023 when Interswitch reported a loss weighed by foreign exchange volatility and chargeback fraud.
Interswitch’s core payments and card services were the dominant drivers of the switch to increase with revenue primarily segmented into two categories which are transaction revenue and non-transaction revenue.
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The transaction revenue includes its card scheme Verve, core payments processing, and telecoms services (airtime and bulk SMS), accounting for 75 percent of the group’s total revenue.
Verve was a key player, contributing 32 percent of the group’s revenue following a 39 percent growth.
Core transactions recorded a 43 percent growth, making up 39 percent of group revenue. Non-transaction revenue saw the most rapid expansion, growing by 81 percent year-on-year to hit N34.3 billion.
Nigeria remains the bedrock of Interswitch’s operations, contributing a commanding 90 percent of the total revenue.
The remaining revenue came from its operations in Mauritius, the United Kingdom, and East Africa (Kenya & Uganda).
Read also: Interswitch bets on tokenisation, tap-to-pay and cross-border rails to power Africa’s payment future
Interswitch also focused on strategic portfolio adjustments and regulatory compliance over the past year. The group initiated a comprehensive restructuring mandated by the Central Bank of Nigeria (CBN).
This process aims to separate its core infrastructure business from its consumer-facing financial services, leading to the establishment of a dedicated Payment Service Holding Company (PSHC), for which it has already secured an operating licence.
Interswitch secured final CBN approval for a mobile-money operator licence for its subsidiary, M-Kudi.
Over the past year, Interswitch has also repositioned its business beyond payments, as in 2024, it sold its 20 percent stake in Gamswitch for N1 billion, and its East Africa unit exited its stake in Pesatransact.
In line with regulatory guidance, the company began restructuring, where it separated its core payment-infrastructure operations from its consumer-facing financial services. It has already secured an operating licence for the newly formed Payment Service Holding Company (PSHC).
Read also: Interswitch strengthens developer community with ‘Coded Meetup’ in Lagos
The firm’s total revenue surged 50 percent to 137.5 billion, which translated directly into profits. Transaction-based income, which covers payments, card services, and telecoms, made up 75 percent of total revenue.
Within this, revenue from Verve surged 39 percent, contributing roughly 32 percent of group revenue.
Core transaction revenue, which includes cards, payments, telecoms, grew by 43 percent, which is about 39 percent of the group’s income. Non-transaction income includes other services, which jumped 81 percent to N34.3 billion.
Folake Balogun is a renowned tech journalist who offers insightful and critical analysis of the African rapidly growing digital economy, particularly within Nigeria. She closely monitors the health of the African startup ecosystem by covering significant venture capital trends, investment deals, and the challenges faced by emerging firms. Known for her deep dives into the fintech sector, she covers the evolution of digital payments, dynamics of major financial innovations and also extends to emerging technologies such as Artificial Intelligence (AI) and the future of connectivity by providing context to their economic and social impact.
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