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CashAfrica, a Nigerian contactless payment infrastructure provider, has partnered with ChamsSwitch, a licensed switching and electronic payment processing company, to resolve compliance bottlenecks slowing the rollout of its tap-to-pay solution.
Under the agreement, CashAfrica will manage the contactless payment experience when users tap a phone or card on a point-of-sale (POS) terminal, while ChamsSwitch will handle transaction routing between banks and update account balances.
The partnership is designed to address one of the most critical barriers in Nigeria’s payments ecosystem: regulatory compliance and trust.
Why compliance has slowed tap-to-pay adoption in Nigeria
CashAfrica said previous integration efforts with financial institutions, including PalmPay, AltBank, and Sterling Bank, were delayed due to extended due diligence and regulatory concerns.
Without a licensed switching partner, the company lacked the compliance infrastructure required for banks and fintechs to integrate its technology at scale. This gap limited its ability to launch partnerships, raise capital, and expand its footprint.
“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, CEO of CashAfrica.
“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,” he added.
How the CashAfrica–ChamsSwitch integration works
The collaboration splits responsibilities between both companies to create a compliant, end-to-end payment flow.
CashAfrica focuses on the front-end experience, enabling users to complete transactions through tap-to-pay interactions using mobile devices or contactless cards. ChamsSwitch operates in the background, routing transactions securely across the banking network and ensuring settlement.
This structure aligns with regulatory expectations, where licensed switching providers are responsible for transaction processing within Nigeria’s financial system.
CashTap and the role of NFC in digital payments
Founded in 2024 by Malik Asamu and Bello Opeyemi, CashAfrica builds payment infrastructure powered by Near Field Communication (NFC), a short-range wireless technology that enables devices in close proximity to exchange data.
Its flagship product, CashTap, allows customers to make payments by tapping a smartphone or contactless card on a POS terminal, eliminating the need for PIN entry or QR code scanning in many cases.
While NFC-based payments are widely used in developed markets, adoption in Nigeria remains limited due to infrastructure gaps and regulatory complexity.
Regulatory environment shaping contactless payments
Contactless payments in Nigeria operate under strict regulatory oversight. The Central Bank of Nigeria applies the same level of scrutiny to new payment infrastructure as it does to digital wallets and POS systems.
A 2025 policy restricting POS terminals to a 10-metre operating radius and linking them to a single financial institution highlights the level of control regulators maintain over payment channels.
Although Nigeria already supports real-time payments through systems like the Nigeria Quick Response (NQR) code framework, contactless payments require additional layers of trust, interoperability, and compliance.
CashAfrica believes that integrating with ChamsSwitch provides the regulatory backbone needed to meet these requirements.
Building trust across banks, merchants, and users
Beyond compliance, scaling contactless payments requires adoption across multiple stakeholders. Banks must be confident in the infrastructure, merchants need reliable payment acceptance, and users must trust the system’s security and convenience.
The partnership with ChamsSwitch, which has operated within Nigeria’s payment infrastructure for years, is expected to strengthen credibility across these groups.
“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.
What this means for Nigeria’s payments ecosystem
The CashAfrica–ChamsSwitch partnership reflects a broader shift in Nigeria’s fintech ecosystem, where innovation increasingly depends on regulatory alignment and infrastructure partnerships.
As fintech companies move beyond building standalone products to integrating with licensed infrastructure providers, compliance is becoming a key competitive advantage.
For CashAfrica, the partnership could accelerate its go-to-market strategy, unlock previously stalled integrations, and position it as a player in Nigeria’s emerging contactless payments space.
If successful, it may also signal a gradual shift toward tap-to-pay adoption in a market that has historically relied on cash, transfers, and QR-based payments.
