The Association of Point of Sale (POS) Service Providers, a coalition of payment firms, has threatened to suspend the acceptance, acquisition, processing and switching of Verve card transactions over allegations of anti-competitive practices and regulatory breaches by Verve International and Interswitch Limited.
In a letter addressed to the managing directors of both companies, the coalition accused Verve and Interswitch of engaging in activities that allegedly violate regulations issued by the Central Bank of Nigeria (CBN) and provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018.
The coalition, which comprises several CBN-licensed payment acceptors, acquirers, processors and switches, said it was left with no choice but to consider halting support for Verve card transactions due to what it described as persistent unlawful conduct.
According to the group, the alleged violations include maintaining an exclusive monopoly over Verve transaction processing and switching, abusing a dominant position in the domestic card scheme market, imposing excessive scheme fees and making unauthorised deductions from settlement accounts belonging to industry operators.
The association claimed that Verve and Interswitch have maintained exclusivity arrangements for more than a decade despite regulatory expectations that promote interoperability and fair competition within Nigeria’s payment ecosystem.
It argued that other card scheme operators have already removed similar exclusivity arrangements in line with CBN regulations, creating a more competitive environment that allows multiple participants to process, acquire and switch transactions without restrictions.
The coalition also criticised Verve’s revised acquirer scheme fee, introduced on April 1, 2025, describing it as inconsistent with the CBN’s Merchant Service Commission framework.
“As responsible, law-abiding organisations, we can no longer continue to support or participate in the Verve ecosystem while these serious breaches persist,” the coalition stated in the letter.
The group warned that continued operation under the existing arrangement exposes participating institutions to capital erosion, operational concentration risks and potential regulatory liabilities.
Among its demands, the coalition called for the immediate withdrawal of Verve’s “Transaction Routing Integrity and Prohibition of Network Bypass” rules issued on May 22, 2026. It also requested the abolition of all exclusivity arrangements, a halt to alleged unauthorised deductions and refunds of any amounts already deducted.
In addition, the association urged Verve and Interswitch to stop requiring issuers and acquirers to route Mastercard, Visa or other payment card transactions through Interswitch and to review Verve’s domestic scheme fees to align with CBN regulations.
The coalition gave both companies two days to provide written commitments addressing the concerns raised. It warned that failure to do so would trigger the planned suspension of Verve card transaction services.
The group further stated that Verve and Interswitch would bear responsibility for any disruption experienced by merchants and cardholders if the suspension takes effect.
Reacting to the development, communications consultant Yomi Idowu cautioned that a breakdown in relations between payment operators and Verve could significantly disrupt banking operations nationwide if the CBN and the Federal Competition and Consumer Protection Commission (FCCPC) do not intervene promptly.
