1. Towards Achieving Interoperability and Interconnectivity of the Nigeria Payment Schemes What remains to be achieved?

2. Strategy Retreat, Accra, March 26 & 27, 2009 Definition of concepts…  Interconnectivity  Connections of systems that allows the flow of transactions  Interoperability  Acceptance of payment tokens on acceptance devices and touchpoints  Payment Schemes  Operators of payment switching and processing networks  Card Schemes  Operators of card payment switching and processing networks  Card Associations  Group of issuers operating a card scheme under common rules

3. Strategy Retreat, Accra, March 26 & 27, 2009 Card Acquirers ATM Networks POS ATM Bill Payments NIBSS* (Live) E-Tranzact InterSwitch Valucard/ Visa Mobile CTL/ MasterCard Mobile Operators ATM POS ATM POS FIRS Utility Customs POS ATM Card Acquirers VisaNet MIP Web MasterCard Mobile Local Visa (VPay) Merchants 3 rd Party Processors POS Direct Payment Solutions EFT POS Web Visa International Central Switch (Live) NACS** (ACH) 24 Banks * Nigerian Inter-bank Settlement Scheme ** Nigeria Automated Clearing System RTGS (Live) 3-Line Chams Switch Money Transfer Operators Western Union MoneyGram Vigo Coinstar SWIFT Nigerian Payments Industry Landscape SmartSwitch

4. Strategy Retreat, Accra, March 26 & 27, 2009 The Landscape As Initially Envisioned (Switches, Bank FEPs Process and Authorise) SuperSwitch FEP International Payment Networks Value Added Services ISO/IADs

5. Strategy Retreat, Accra, March 26 & 27, 2009 The Landscape Today (Over 27 Switches) FES MasterCard Value Added Services ISO/IADs MasterCard Visa Value Added Services Switch Owned Value Added Services Switch 1 Switch 2..

6. Strategy Retreat, Accra, March 26 & 27, 2009 The National Central Switch FES MasterCard Value Added Services ISO/IADs MasterCard Visa Value Added Services Switch Owned Value Added Services Switch 1 Switch 2.. NCS New player..

7. Strategy Retreat, Accra, March 26 & 27, 2009 What has been done elsewhere…  South Africa  The big four have a central switch through which they connect to VISA and MasterCard  The smaller banks either use the switch above or connect through local third party processors  Canada  A proliferation of switches with direct interconnect amongst payment schemes  France  All banks connect to a central switch and card network – Carte Bancaire  Most banks connect to VISA and MasterCard through this network, some banks connect directly  There are several domestic card schemes using Chip technology  US  A proliferation of payment schemes with bilateral interconnect agreements  Many other countries use similar models

8. Strategy Retreat, Accra, March 26 & 27, 2009 Next Steps for Interoperability Interoperability Standards Rules Regulations Enforcement

9. Strategy Retreat, Accra, March 26 & 27, 2009 Copyright InterSwitch 2004 Thank You