PalmPay Set to Start Savings Plan With 20% Interest After Hitting 25M Nigerian Users

PalmPay, a leading Africa-focused fintech platform, is set to introduce a savings service that will offer a 20% annual interest savings plan available to all customers this week. 

The statement was made during an event held to mark the platform's 25 million registered users.

Even after hitting 25 million users on its smartphone app, a key milestone in its journey, the firm is also celebrating its broad network of 500,000 mobile money agents and 300,000 merchants in its payments ecosystem.

The company's strong approach to offering secure, user-friendly, and inclusive financial services has resulted in exceptional development in just four years after its market launch in Nigeria. 

According to Sofia Zab, Palmpay's Global CMO, the firm is pleased to have become one of the key drivers of financial inclusion in Nigeria, as well as a smart payment solution provider in Africa.

PalmPay's efforts to promote financial inclusion have had a significant impact, with over 30% of its users saying that the app was the foundation of their first financial account. 

Its recent growth as one of the most effective and reliable fintech solutions despite the naira cash shortage has also contributed to the platform's growing popularity among Nigerians.

Chika Nwosu, the Managing Director of Palmpay Nigeria, recently said that the firm anticipated the issues that Nigerians would encounter when the CBN announced its aim to restrict the quantity of cash circulating in the economy. Certain actions were made to keep ahead of the curve and assist the underbanked in navigating the issue.

“We were well prepared for it. As soon as the federal government, through the central bank, made the policy, we went to work. What we did was to design and create nearby agent services, which helped our customers access agents nearby to them to swap the naira notes,” he explained.

Palmpay’s Current Plans 

PalmPay is known as a user-friendly digital wallet that combines account opening, money transfer, and bill payment functions. 

The Africa-focused payment network launched in Nigeria in November 2019 following a $40 million financing backed by Transsion, a mobile phone manufacturer.

Fintech companies provide financial services to businesses by providing dedicated applications, web portals, and point-of-sale systems. The PalmPay app provides a full range of financial services, allowing clients to manage all of their money in one place.

Its extensive network of mobile money agents assists users in depositing and withdrawing funds and instructs customers on how to use the PalmPay app. Its agents also help clients who do not have cell phones by transacting on their behalf, allowing millions more individuals to use PalmPay's services.

The company's success in Nigeria has been fueled by its payment structures, which provide exceptional stability in a nation affected by unreliable financial systems. PalmPay stands out in the highly competitive fintech market with 99.5% also showing a 10-second transaction success rate.

“PalmPay is more than a digital wallet – we are building a comprehensive platform to offer consumers all the tools they need to thrive financially. As we move forward, we aim to become Africa’s financial super app,” Zab added.

Palmpay’s Future Plans

The company's plan, according to the corporation, is to bridge the gap between customers and companies by digitizing transactions with merchants. Every month, PalmPay welcomes tens of thousands of offline businesses, many of which are motivated to join its network by requests from its consumers who wish to pay with a transfer. 

PalmPay wants to expand its operations to new nations to allow cross-border transactions in the future. The business is currently testing services in Ghana and is planning to debut in many additional African countries.