Fintech Cross Switch granted approval to operate in Ghana
Fintech Cross Switch has obtained approval from the Bank of Ghana to operate as an Enhanced Payment Service Provider (EPSP).
As an EPSP, Cross Switch Ghana says it will leverage its payments and technology infrastructure to digitise merchant payments, collections and disbursements for ecommerce, remittances as well as driving financial inclusion.
This, as the payments space in Ghana has been growing since the Bank of Ghana introduced the Payment Systems and Services Act (2019) and the National Payment Systems Strategic Plan (2019-2024) to create an enabling regulatory environment which enhances financial innovations.
Ghana has also witnessed strong growth in mobile money, which research firm IMARC Group expects to reach US$ 590.7 Billion by 2028.
In 2022, the Ghana mobile money market size reached US$ 121.8 billion, dominated by Vodafone and MTN.
Cross Switch says this presents an opportunity as merchants are increasingly looking for innovative, and scalable services such as the ones it provides, and will leverage on that to reach out to a wider customer base.
The newly licensed EPSP is a subsidiary of Cross Switch International based Luxembourg, a fintech that manages payment systems across emerging markets.
Cross Switch has established and invested in companies in Benin, Egypt, Ghana, Kenya, Morocco, Nigeria and South Africa.
Plans are on course for the fintech to expand across Africa “through green field ventures, partnerships and acquisitions, with a focus on Western Africa”, says the company.
Also, Cross Switch recently announced its acquisition of a 50% stake in Vantage Payment Systems, a Moroccan fintech providing online payment solutions
Commenting on the development, Saqib Nazir, CEO of Cross Switch Ghana, says: “We look forward to tapping into the Group’s knowledge base and expertise to provide innovative solutions to the challenges that emerging markets face. We expect to contribute significantly to the digital payments ecosystem in Africa and thus contribute to Africa’s development.”
Cross Switch International CEO, Tim Davis, adds: “We have witnessed the evolution of Cross Switch Ghana from a local fintech company to a licensed Enhanced PSP. Sharing a common set of values and a common mission to democratize technology and drive social impact across Africa.
“With their exceptional team and proven ability to provide relevant value-added services, we believe the company will excel in the fast-moving fintech space.”