This archive report was first published on 14 November 2019.
November 14, 2019 - PalmPay, a mobile financial services platform, has announced its launch in Nigeria, marking a significant milestone in the country's digital payment landscape.
The platform received $40 million funding led by Transsion, a Chinese mobile phone company, through its Techno subsidiary. Other investors, including Netease from China and Madiatek from Taiwan, also participated in the funding round.
With the backing of Transsion, one of Africa's largest smartphone sellers, PalmPay aims to become the continent's largest financial services platform. The company has already partnered with Tecno, Infinix, and Itel, with the PalmPay app pre-installed on over 20 million phones in 2020.
PalmPay offers a range of mobile-based financial services, including no-fee payment options, bill pay, rewards programs, and discounted airtime. In Nigeria, users can enjoy 10% cashback on airtime purchases and bank transfer rates as low as 10 Naira.
According to Greg Reeve, PalmPay's CEO, the company plans to use the $40 million seed funding to expand its operations in Ghana and other countries in 2020. The Nigerian Central Bank licensed PalmPay as a mobile operator in July, and during the pilot phase, the platform registered 100,000 users and processed over 1,000,000 transactions.
With its strategic advantages, including the support of Transsion and partnerships with Tecno and other leading smartphone manufacturers, PalmPay is optimistic about competing in Nigeria's digital payment market.
