Nigerian contactless payments infrastructure provider, CashAfrica has entered a partnership with switching and payment processing company, ChamsSwitch.
This is a move designed to resolve long-standing regulatory and compliance bottlenecks hindering the rollout of its tap-to-pay system.
The collaboration is aimed at strengthening the underlying infrastructure required for CashAfrica’s expansion, particularly by addressing the regulatory assurances demanded by banks and fintech partners before integrating new payment technologies.
“The partnership directly removes the compliance friction that has been the single biggest blocker across capital raising, partnership launches, and partner integrations,” said Malik Asamu, CashAfrica’s CEO.
What You Need to Know
Under the agreement, CashAfrica will manage the customer-facing contactless experience, enabling users to complete payments by tapping a smartphone or card on a point-of-sale (PoS) terminal.
ChamsSwitch will handle the back-end transaction routing, connecting banks, processing payments, and updating account balances in real time.
The structure is designed to combine user experience innovation with established payment switching infrastructure, effectively embedding compliance into the system architecture.
“With that foundation now in place, CashAfrica can pursue fundraising with a stronger story, activate integrations that were previously stalled, and approach new banking and fintech partners with the regulatory credibility they require,” said Asamu.
Breaking the Compliance Bottleneck
CashAfrica said the absence of a licensed switching partner had previously slowed down its expansion efforts, despite active discussions with major financial institutions.
The company disclosed that integration talks with platforms such as PalmPay, AltBank, and Sterling Bank had stalled due to extended due diligence processes and regulatory concerns.
By partnering with ChamsSwitch, CashAfrica aims to remove a key credibility gap that had prevented full-scale adoption of its contactless infrastructure.
“ChamsSwitch has been part of Nigeria’s payments infrastructure for years, and this partnership reflects our commitment to enabling the next generation of digital payment experiences, said Mudiaga Umukoro, CEO of ChamsSwitch.
Building a Tap-to-Pay Ecosystem in Nigeria
Founded in 2024 by Asamu and Bello Opeyemi, CashAfrica provides contactless payment infrastructure powered by Near Field Communication (NFC), a short-range wireless technology that enables devices within a few centimetres of each other to communicate.
Its flagship product, CashTap, allows users to complete transactions by tapping their phone or contactless card on a PoS device.
The model places CashAfrica within a growing global shift towards frictionless payments, although adoption in Nigeria remains limited compared to more mature digital payment markets.
For ChamsSwitch, the partnership represents an extension of its role in Nigeria’s payments ecosystem, where switching infrastructure is a critical backbone for transaction processing.
Regulatory Environment Remains a Key Challenge
Contactless payments in Nigeria continue to face structural and regulatory hurdles. The Central Bank of Nigeria has historically applied strict oversight to payment innovations, particularly around agent banking and PoS operations.
A 2025 policy that restricted PoS terminals to a 10-metre radius of their registered location and tied them to a single financial institution highlighted the cautious regulatory approach to payment infrastructure expansion.
While Nigeria already operates real-time digital payment systems, including the Nigeria Quick Response (NQR) code framework, contactless payments require additional layers of trust, compliance, and institutional adoption to scale effectively.
The collaboration is expected to strengthen CashAfrica’s positioning as it seeks to scale its NFC-based payment infrastructure across merchants and financial institutions.
Talking Points
It is significant that CashAfrica’s partnership with ChamsSwitch directly tackles one of the most persistent barriers in Nigeria’s payments ecosystem, which is not innovation, but regulatory compliance and institutional trust.
This move positions CashAfrica’s tap-to-pay infrastructure more credibly within the formal financial system, especially at a time when banks and fintechs are increasingly cautious about integrating new payment technologies without strong regulatory backing.
At Techparley, we see this as a clear example of how infrastructure partnerships, rather than standalone product innovation, often determine whether payment technologies can scale in highly regulated markets.
The integration of a licensed switching partner strengthens the technical and compliance foundation needed for contactless payments, which remains relatively underdeveloped in Nigeria despite progress in digital payments overall.
As CashAfrica moves forward, there is an opportunity to accelerate adoption through deeper collaboration with banks, fintech platforms, and regulators to ensure interoperability and consistent standards across the payments landscape.
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