Nigeria's Interswitch has entered a strategic partnership with Swiss banking software firm Temenos to enhance the digital banking infrastructure available to financial institutions across Africa, the companies announced on June 16, 2026.

The collaboration will integrate Temenos's core banking and payments processing software with Interswitch's extensive payments network and switching capabilities. The aim is to provide banks and other financial service providers on the continent with a more modern and unified platform for developing and launching digital products. Interswitch, founded in 2002, operates one of Africa's largest domestic debit card schemes, Verve, and processes a significant volume of the continent's electronic transactions.

The move comes as African financial institutions face increasing pressure to modernize their core systems to meet rising demand for digital and mobile-first services. Legacy infrastructure can hinder the speed of product innovation and increase operational costs. By combining Temenos's software with its own pan-African transaction processing reach, Interswitch seeks to offer a more comprehensive solution for banks looking to upgrade their technology stacks.

This partnership reflects a broader trend of consolidation and collaboration within the African fintech sector, as companies seek to offer more complete service suites and expand their geographical footprints. In a separate development announced on June 18, 2026, Uruguay-based cross-border payments firm dLocal revealed its intention to acquire AZA Finance, a currency trading and payments platform operating in Africa. That deal, subject to regulatory approval, is aimed at strengthening dLocal's presence on the continent.

Other fintechs are pursuing different strategies to capture growth. Nigerian mobile payments company Paga announced on June 15, 2026, that it is accelerating its push into stablecoin payments through partnerships with Crossmint and Sui. This initiative focuses on enabling users to send and receive US dollar-pegged stablecoins via its app, tapping into demand for more efficient remittance and cross-border payment channels.

The Interswitch-Temenos deal is not an acquisition but a strategic alignment, contrasting with the outright purchase of assets seen elsewhere. For instance, Nigerian financial services group CapitalSage recently acquired the assets of Chimoney, a cross-border payments startup that had ceased operations, as part of its own expansion into Canada.

By opting for a partnership, Interswitch and Temenos are leveraging their respective strengths without a merger. Temenos brings its widely used core banking software, while Interswitch contributes its deep integration into African payment ecosystems and understanding of local regulatory environments. The success of this collaboration will depend on its adoption by banks seeking to accelerate their digital transformation efforts across the continent.