Payment Industry Analysis in Nigeria


I know anything payment here comes with a sigh :smile: and rightly so too as there are several payment threads on this forum over-flogging similar issues. My aim here isn’t to re-hash the same issues, but to understand the current payments landscape in the country, who does what exactly and if there is still space for any kind of improvement or innovation.
So I was reading the Digital Financial Services in Nigeria(State of Market Report 2017) and came across some terminologies I don’t quite understand and am hoping experts here can help clear the terms.

  1. Payment Switching/Processing Companies( there are 8, according to the report)
  2. Payment Terminal Service Providers[PTSP](18 Licenced, 5 AIP)
  3. Payment Terminal Service Aggregators[PTSA] (16)
  4. Payment Solution Service Providers[PSSP](6 Licensed, 6 AIP)
  5. SuperAgents(2)

Can someone coherently give the definitions and examples of current Nigerian companies that offers those services?

  1. Payment Switching/Processing Companies are basically payment processors and companies in this category include Interswitch, UP (Unified Payment), Innovectives, 3-Line and a few others.

  2. Payment Terminal Service Providers are saddled with the responsibility of servicing and maintaining POS terminals in Nigeria. They include; Global Accelerex, Citiserve, Itex, eTop, WIPay etc. It should be noted that some of these companies also doubles as PTAD (Payment Terminal Application Developer). PTAD develops the software application that runs on POS terminals. e.g. Global Accelerex is also a PTAD.

  3. Payment Terminal Service Aggregators [PTSA]: This refer to the player that is at the centre of all POS transaction processing in Nigeria. Every POS transaction from a merchant location goes directly to a PTSA who then routs the transaction to the respective Payment Processor. The Payment processor then decide who the Issuer (Usually, a Bank) and rout the transaction to the issuer. There is only one PTSA and that is Nigeria Inter-Bank Settlement Systems (NIBSS) Plc.

  4. Payment Solution Service Providers[PSSP] - This are licensed companies with payment and collection solution available in Nigerian Banks. e.g. Upperlink, Parkway Project, Vas2net, InterSwitch, SystemSpecs e.t.c.

  5. SuperAgents(2) - These are companies licensed to acts as agents to financial institutions for Agency Banking in Nigeria. The companies and their partners are expected to deploy, operate and manage robust, efficient and inter-operable agency banking and mobile financial payment networks, with selected retail outlets operating as agents under the framework, as approved by the CBN. e.g. Innovective, Interswitch Financial Inclusion Services Limited, InLaks & 3 Line


Thank you.


Properly broken down