By Chinenye Anuforo
PalmPay is poised to capitalise on the burgeoning mobile money market in Nigeria, driven by the rapid increase in smartphone penetration and the growing adoption of innovative technologies.
Chika Nwosu, Managing Director of PalmPay, emphasised the transformative potential of these advancements at a recent media roundtable in Lagos. “With smartphone penetration projected to reach 65% by 2026 and improved internet infrastructure, a larger portion of the Nigerian population will be able to access mobile money services. Fintech companies like PalmPay are evolving through digital wallets and seamless payment gateways, significantly expanding accessibility to mobile money services.”
He further highlighted the growing demand for affordable financial services, presenting significant opportunities for companies like PalmPay and underscored the pivotal role of agent networks in driving mobile money adoption.
“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. We can expect a sharp increase in the number of mobile money agents and merchants. Furthermore, Mobile Money Operators (MMOs) will increasingly utilise artificial intelligence to enhance customer experiences through machine learning, predictive analytics, and fraud detection. PalmPay’s own success story reflects this growth trajectory.
“PalmPay has facilitated six billion dollars in monthly transactions, with 16 million monthly active users. We have achieved a transaction success rate of 99.5% and a customer retention rate of 75%,” Nwosu said.
Donald Ubeh, Head, Risk and Compliance, MLRO at PalmPay, highlighted the broader impact of fintech on the Nigerian economy. “Efforts are ongoing to remove Nigeria from the FATF Grey list, with 50% of the requirements already met,” Ubeh stated. “Collaboration with regulators and other financial institutions is crucial for this endeavor.”
Ubeh emphasized that fintech companies like PalmPay have played a vital role in empowering individuals and businesses. “Many Nigerians, including bank customers, have migrated their funds to PalmPay owing to its convenience and accessibility,” he noted. “Mobile money operators were conceived with the aim of driving financial inclusion for the underserved and unbanked population.”
According to EFInA, increasing adoption of fintech companies by Nigerians has led to a 13% increase in financial inclusion rates over the past 13 years.
Ubeh further highlighted PalmPay’s significant contribution to the digital economy. “The company has reached 35 million users and over 1.2 million businesses, contributing significantly to a cashless economy and empowering MSMEs,” he revealed.
“Nigeria has 150 million active mobile phone lines, and the financial inclusion rate has risen from 51% in 2016 to 74% in 2023.” He emphasized that agent banking contributes 60% of all mobile money transactions, with over two billion dollars in foreign direct investments and 1.5 million mobile money agents as of 2023.