PalmPay, an Africa-focused payments startup redefining the payments experience for consumers and businesses in Africa by making financial services more accessible and affordable has announced it has reached 10 million users in Nigeria, its main market.
The startup launched in Nigeria in 2019 after securing a $40 million investment from a group of investors led by Chinese mobile-phone maker, Transsion.
The latest number represents a doubling in its user base within just six months and puts its customer numbers in the same league as major institutions only 3 years after the company launched in the market.
The fintech, which operates under a Mobile Money Operator license from the Central Bank of Nigeria, has gained significant traction with its payments 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.
Nowadays PalmPay is processing millions of transactions a day. And around 20% of the company’s customer base report that the PalmPay app was their first financial account, demonstrating that the Mobile Money Operator is contributing to driving progress towards financial inclusion targets in Nigeria, where 36% of the population remains unbanked. Nigerians without smartphones can visit one of PalmPay’s 200,000 mobile money agents across the country, who can transact on their behalf or issue an innovative QR card that can be used to hold a balance. Consumers can also use PalmPay agents to deposit cash to their PalmPay accounts and withdraw money using their debit cards through PalmPay-branded POS machines.
“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,” said Mr. Chika Nwosu, Managing Director, PalmPay Nigeria. “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.”
“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,” said Sofia Zab, PalmPay Global CMO.
