By Adedapo Adesanya
PalmPay, a digital payment company, announced that it has reached 10 million users in Nigeria, about 100 per cent higher than its base in just six months and puts its customer numbers in the same league as major institutions only after the company launched in the market in 2019.
The fintech, which operates under a Mobile Money Operator (MMO) license from the Central Bank of Nigeria (CBN), has gained significant traction with its payment app and nationwide agency banking network.
Its proposition of instant financial account creation, fee-free bank transfers, and cashback rewards on airtime and bill payments have appealed to millennial and Gen-Z consumers, who are looking for more affordable banking options and prefer the convenience of a digital-first service.
PalmPay, in a statement, said it is processing millions of transactions a day with around 20 per cent of the company’s customer base reporting that the PalmPay app was their first financial account.
Analysts noted that this is demonstrating that the mobile money operator is contributing to driving progress toward financial inclusion targets in Nigeria, where 36 per cent of the population remains unbanked.
Speaking on this development, Mr Chika Nwosu, Managing Director, PalmPay Nigeria, said, “We are delighted to be able to celebrate this growth milestone and are proud of PalmPay’s track record of making cutting-edge financial services accessible to every Nigerian – including the unbanked.”
“The pandemic has accelerated the shift from cash to digital payments and we are looking forward to continuing to work together with regulators and our partners to innovate to meet the financial needs of consumers.”
On her part, Ms Sofia Zab, PalmPay Global CMO said – “Our significant growth in Nigeria demonstrates PalmPay’s ability to innovate to meet the financial needs of consumers, and we are looking forward to replicating this success as we scale in more markets across Africa.”
PalmPay raised a $100 million Series A round of funding in August 2021 and this brought the total funding to $140 million raised in total. The company is now operating in Nigeria and Tanzania and will be scaling its proposition in other African markets in 2022.
