American Express (AmEx) has announced its partnership with Interswitch Nigeria on Friday February 21. AmEx is seeking to expand its reach in Africa, especially Nigeria, leveraging on the large number of users already on the Interswitch platform.
The partnership will also help Interswitch to use American Express to establish itself in the Americas.
The duo provide financial payment services and are looking to expand their operations beyond the continent of their origin. The partnership will enable American Express Cardmembers to carry out a wide range of transactions including ATM withdrawals via Interswitch. On the other hand, it will allow Interswitch to integrate its network of merchants in Nigeria into the global American Express network.
“AmEx and Interswitch are aligned in our desire to provide fast and secure payment solutions and transactions across Nigeria. With this new partnership, we are improving AmEx Cardmember access to a convenient and secure network, which also benefits our merchants who will gain new opportunities presented by an expanded user base.
“By remaining card scheme neutral, Interswitch will continue to explore innovative partnerships that will benefit consumers and retailers alike,” said Akeem Lawal the Divisional Chief Executive Officer for payment processing at Interswitch.
The partnership agreement entails that Interswitch will manage American Express merchants in Nigeria, offering them unlimited transaction access that was previously impossible due to the scanty transaction options offered by AmEx to its Cardmembers in Nigeria. As part of the deal, Interswitch will expand American express business presence by bringing new merchants into the platform.
The Vice President & General Manager, Global Network Partnerships EMEA for American Express, Vivi Galani said that the company is always looking to consolidate its role as a leader in the global network.
“We are excited to be partnering with Interswitch, a well-respected pan-African financial technology company, to continue to grow our presence in Nigeria. As we partner with leading banks and financial institutions around the world, we are bringing the powerful backing of the American Express network to Cardmembers and merchants by expanding acceptance of our cards.”
Lawal said Interswitch’s partnership with American Express should spur more merchants to join Interswitch, he reiterated the company’s commitment to uphold excellence in service to everyone aboard its platform.
Interswitch Limited is a Nigerian digital payment company that provides digitized payment services in Nigeria and other African countries.
Just a month ago, the company got listed in the Nigerian Stock Exchange (NSE), with a whopping N23 billion bond, and has started living up to the big move by expanding its tent beyond Africa.
Meanwhile, Good Is Good Logistics (GIGL) is partnering with Gokada and ORide to expand its logistics delivery services in Lagos. The Lagos State’s ban on motorcycle services in has put a sudden stop to the business of all the motorbike ridesharing services, and opened them up to other options that can put them back in business.
Well, the ban exempted dispatch riders and that seems to have offered hope to the displaced ride-sharing companies.
Gokada was the first to take an aim at service delivery in the wake of the ban, a strategy that has caught the attention of GIGL, who are reportedly in talks with Gokada, ORide and some others for a partnership deal in delivery service.
GIGL Lead, expansion and growth, Odafe Onojah admitted that the companies are in talks for a deal that will result in the utilization of the suspended bikes for logistics services.
However, there have been concerns about the large number of motorcycles affected by the ban; if there will be a room for most of them in the logistics business. Onojah said the market space for the services is wide enough to accommodate a large number of motorbikes, and such fears are not of concern.
“In this present age, people no longer want to leave the comfort of their homes, when there is a reliable delivery service that can bring whatever they want to their doorsteps,” he said.
While the pivot appears salvage to the ridesharing companies, it poses fear of disruption to the service delivery market. With the number of companies involved and the number of dispatch riders to be incorporated, delivery items will not be enough to go round.
There is also concern that the state government may eventually take a swipe at the idea.