News Highlights:
- Smartphone Penetration and Internet Connectivity Drive Mobile Money Growth
- PalmPay Expands with High Transaction Success and Financial Inclusion Efforts
Mr. Chika Nwosu, Managing Director, PalmPay, Nigeria’s leading Mobile Money Operator (MMO), has identified smartphone penetration, internet connectivity and innovative technologies as key factors that are crucial to increased access to mobile money services in Nigeria.
MMOs are financial service providers licensed by the Central Bank of Nigeria (CBN) to offer mobile-based financial services. They facilitate the transfer of funds, payments, and other banking-related services through mobile devices.
Speaking during a media roundtable held at the company’s head office in Lagos recently, Nwosu said that with smartphone penetration projected to reach 65% by 2026 as well as improved internet infrastructure, more Nigerians will be enabled to access mobile money services.
He disclosed that, with fintech companies such as PalmPay evolving through digital wallets and seamless payment gateways, accessibility to mobile money service was bound to expand soon, and emphasised that with demand for affordability of financial services growing, more opportunities would be unlocked for PalmPay in the nearest future.
“From under 10,000 agents in 2015 to over 1.5 million agents in 2023, agent networks have become the backbone of mobile money operations in Nigeria. For this reason, we are more likely to see a sharp increase in the number of mobile money agents and merchants. Apart from that, MMOs will increasingly use artificial intelligence to improve customer experiences, such as machine learning, predictive analytics, and fraud detection,” he said.
Nwosu stated that PalmPay is a multinational fintech focused on emerging markets, and leveraging cutting-edge technology to provide world-class financial services to underserved regions, adding that with Nigeria’s largest financial app, boasting 16 million monthly active users, the company continues to expand rapidly into new markets, driving financial inclusion and digital transformation.
The PalmPay Chief Executive further disclosed that the fintech’s monthly transaction value has reached an estimated $6 billion, with a remarkable 99.5% success rate and 75% customer retention rate and emphasized the company’s commitment to leveraging cutting-edge technology to provide world-class financial services, particularly in regions where they are most needed.
He stated that a lot of systems and mechanisms have been put in place to save unsuspecting victims of fraud, and added that PalmPay’s savings product has been offering highly competitive returns of up to 20% Flexible savings annual interest as well as making a N4 billion interest payout in 2024.
Clarifying PalmPay’s position in the financial sector, Nwosu stressed that the platform is not a loan app but a reputable financial institution licensed and regulated by the Central Bank of Nigeria, and reaffirmed the company’s dedication to financial inclusion and innovation, ensuring secure and efficient services for its growing user base.
In a presentation on the impact of Fintech, Donald Ubeh, Head, Risk and Compliance, MLRO at PalmPay, revealed that PalmPay is making significant strides in reaching the unbanked and underbanked, expanding its user base to 35 million and supporting over 1.2 million businesses.
He said that with the Fintech’s unlimited free transfers on outbound transactions, the platform ensures affordable financial services for all, noting that its network of over 500 agents across Nigeria enhances convenience and accessibility, driving a cashless economy.
Additionally, Ubeh stated that PalmPay empowers users and MSMEs while promoting financial literacy, contributing to a 13% increase in financial inclusion over the past 13 years, according to EFInA.
On the issue of fintech and regulation, Ubeh said regulators have provided a strong framework for the fintech ecosystem, enabling its rapid expansion and supporting the growth of the digital economy by driving financial inclusion and creating livelihoods.
Ubeh, however, opined that challenges persist, including the need to adapt regulations to evolving technologies, address cybersecurity risks, combat fraudulent practices, and ensure inclusivity in financial services, noting that as fintech continues to transform the financial landscape, balancing innovation with regulatory safeguards remains crucial for sustainable growth.
He revealed that efforts were ongoing to remove Nigeria from Financial Action Task Force (FATF) Grey list as 50% of the requirements have already been met and stated that with more collaboration with regulators and other financial institutions, it was only a matter of time that Nigeria’s name will be expunged from the list.
He reiterated the fact that the PalmPay platform was not a loan app, describing it rather as a reputable financial institution that is licensed and regulated by the Central Bank of Nigeria.
Femi Hanson, Head of Marketing at PalmPay, said the fintech company would focus more on deepening financial inclusion by integrating innovative technologies, collaborate more with regulators and financial institutions, work towards increasing smartphone adoption, and address the issue of increased demand for affordable services.
He said that with Nigeria’s mobile money sector witnessing significant growth, and agent networks expanding from under 10,000 in 2015 to over 1.5 million in 2023, becoming the backbone of mobile money operations, this growth is expected to continue, alongside the increasing adoption of artificial intelligence, blockchain, and big data by Mobile Money Operators (MMOs) to enhance customer experiences through machine learning, predictive analytics, and fraud detection.
Hanson revealed that additionally, fintech platforms are diversifying their digital services, integrating offerings in insurance tech, health tech, savings, and wealth management to provide more comprehensive financial solutions.