Summary:
- PalmPay backs recent regulatory actions in the fintech industry, declaring that measures aim to enhance the sector’s services and strengthen the ecosystem.
- Onboarding restrictions notwithstanding, PalmPay remains resilient, underlining its adherence to regulatory standards and long-term viability.
- PalmPay underscores its role in fostering financial inclusion and supporting economic growth through its digital platform and innovative services.
Managing Director/Chief Executive Officer of PalmPay Nigeria, Mr. Chika Nwosu has declared PalmPay’s unwavering support for regulators of the Fintech industry, noting that recent regulatory pronouncements are intended to not only strengthen the ecosystem but to better the services offered by the industry’s service providers.
Speaking as a guest of Channel Television’s Business Morning Show, Nwosu said owing to the phenomenal growth the Fintech industry has experienced in so short a time, the regulators felt there was a need to put certain things in place to ensure better service delivery.
“The truth is that Fintech in Nigeria has grown so big within a short time. And what the regulators are trying to do is to respond to this pace and ensure that it is gotten right at this time. They want to see that whatever regulation they are putting in place is to the benefit of the Fintech industry, the government and the people.
“We have had several meetings with stakeholders including the NSA, the EFCC, the CBN and others. And within the Fintech ecosystem, we have also been talking. To be very honest with you, there are no issues; all that is happening is to make Fintech in Nigeria better and to offer better services to the people,” he said.
Responding to a question on the restriction placed on the digital banks from onboarding new customers into their platforms, the PalmPay Chief Executive disclosed that after their meeting with the National Security Adviser (NSA), they (digital banks) agreed among themselves to fine-tune some grey areas in their service delivery portfolio.
“If by today PalmPay finished fine-tuning its own grey areas, it will start onboarding new customers. But for now, no Fintech can onboard, however, it doesn’t affect our business. There is no day you won’t see on our app boldly written that we are licensed by the Central Bank of Nigeria (CBN). In addition, our deposits are insured by the Nigeria Deposit Insurance Corporation (NDIC). PalmPay is here to stay, and for good,” he said.
On failed transactions, Nwosu said every institution has its own structure and business strategy, but that delivery and performance depend on how prepared such institution is, noting that “for us in the Fintech industry, we have a system we use that makes transactions seamless. We do not have any issues with NIBSS.”
On the country’s economic uncertainty and its impact on digital banks vis-à-vis trust issues as well as the ease of doing business, the PalmPay helmsman said the Fintech industry in Nigeria has no issues, insisting that whatever that is happening now is for the good of the industry.
“When we started this business newly in Nigeria, there was the issue of trust. However, in the last one year, after the cashless policy, the trust has started growing. Yes, doing the business of Fintech in Nigeria is not that easy but it might interest you to know that Nigeria is highly compliant when it comes to digital payment. People are really embracing the PalmPay App more than you could anticipate,” Nwosu stated.
Addressing the question about PalmPay not having a walk-in physical location for customers to go to and resolve some pressing customer concerns, he answered, “In Lagos, there are locations in Ikeja GRA and Opebi to lay complaints.
PalmPay also has walk-in offices in locations across 25 states in Nigeria. Complaints can also be resolved via PalmPay’s social media channels. Customers can also call the customer care desk at +2342018886888 and email support@palmpay.com and will be attended to.
Quizzed about what impact the recently introduced Cybersecurity levy by the Federal Government would have on digital banks, the PalmPay MD said discussions are ongoing around this, and stakeholders are discussing issues around it.
On the contributions of the Fintech industry to the digital economy, Nwosu said that although the government is doing a lot in the digital economy space all geared towards creating jobs for Nigerian youths, the Fintech industry is contributing immensely to the actualisation of the financial inclusion drive of the government.
“We (PalmPay) create the platform for people to make payments, pay bills, and a whole lot. People can now save on our platform and get 20% interest. We support people with this, encouraging them to save money. We provide our platform for transfers and have our Agency banking system which we have in almost all the local government areas in the country, promoting financial inclusion,” he concluded.