PalmPay, a prominent Nigerian fintech company, is setting its sights on entering the high-stakes remittance market with plans to expand into Asia by 2025. The company is gearing up to venture into the cash transfer business, specifically targeting the Middle East and Southeast Asia.
Although the company is keeping specific details under wraps, Chika Nwosu, Managing Director of PalmPay, shared some insights during a media roundtable last week. “We’re heading to the Middle East and Southeast Asia and looking at other African countries too,” he stated. “We’re still in the research and planning phase, but if there’s an opportunity, we’re going for it.”
The remittance market is indeed a lucrative one. According to the World Bank, global remittances to low- and middle-income countries (LMICs) reached $685 billion in 2024, marking a 5.8% increase from the previous year. Asia, with its vast diaspora and rapidly growing economies, accounts for half of these remittances. Countries such as India, China, and Pakistan are at the forefront, with India alone receiving $129 billion last year.
For PalmPay, which boasts over 30 million users and handles $6 billion in monthly transactions, entering this market could significantly boost its revenue and expand its user base. The company already has an impressive 16 million monthly active users.
Moreover, with other African fintech companies like LemFi and Nala making significant strides in the remittance sector, it is evident that the competition is intensifying. For fintech companies aiming to diversify their income streams and mitigate currency volatility, cross-border services like remittances present a viable solution.
PalmPay’s ambitious move into the remittance market could potentially yield substantial financial gains. As the remittance market continues to grow, it is becoming an increasingly important area for African fintech companies to watch.
