Interswitch CEO on COVID-19 impact, how to deepen financial inclusion in Africa

InterSwitch, a leading player in the rapidly growing payment and financial solutions industry in Africa, has been making significant strides since reaching a $1 billion valuation in 2019. Mitchell Elegbe, the founder and CEO of InterSwitch, recently spoke with CNBC Africa to discuss the company's growth, innovations, and the impact of the COVID-19 pandemic on the industry. Elegbe highlighted that despite the challenges posed by the pandemic, InterSwitch has continued to expand its market presence and drive financial inclusion across the continent. Elegbe emphasized that InterSwitch started as a pioneer in building payment infrastructure in 2002 and has since evolved to offer a wide range of products and services. The company operates the domestic card scheme Verve, processes payments for major card schemes like Visa and MasterCard, and provides consumer-facing solutions such as PTELm, enabling users to make remote payments via mobile phones. In addition, InterSwitch has ventured into other sectors, including healthcare, through strategic acquisitions like E-clat. The acquisition of E-clat proved to be a significant move for InterSwitch, especially during the COVID-19 pandemic when digital payment solutions became crucial. E-clat's technology played a vital role in powering essential services during the pandemic, demonstrating the potential of integrating innovative solutions in healthcare. Elegbe hinted at upcoming developments and innovations in the healthcare space, further solidifying InterSwitch's commitment to leveraging technology for societal impact. Elegbe also addressed the impact of the pandemic on the payment solutions industry, noting a positive shift towards digital payments as businesses, especially SMEs, embraced digital channels. The pandemic accelerated the adoption of digital payment methods and propelled many businesses to transition online. As a result, InterSwitch witnessed improved performance and increased demand for its services, driving the company's growth. Despite the existing cash and digital divide in Africa, Elegbe remains optimistic about the role of mobile technology in fostering financial inclusion. With mobile telephony widely accessible across the continent, Elegbe sees an opportunity to innovate around mobile technology and drive initiatives that promote digital financial services. He highlighted initiatives by central banks, such as the introduction of digital currencies, as steps towards enhancing financial inclusion and expanding access to banking services. Looking ahead, Elegbe believes that the future of the fintech space in Africa is promising, with technology playing a pivotal role in advancing digital payments and financial inclusion. He expressed confidence in the industry's potential for growth and continued innovation, particularly in leveraging mobile technology and exploring new payment solutions. In conclusion, InterSwitch under the leadership of Mitchell Elegbe continues to lead the way in reshaping Africa's payment landscape and driving financial inclusion through innovation and digital transformation.