PalmPay, a leading fintech firm, has unveiled new technology solutions to tackle the escalating issue of fraud in Nigeria’s digital payment landscape. This announcement was made by Managing Director Chika Nwosu during the company’s fifth-anniversary celebration in Lagos.
Since its inception in Nigeria, PalmPay has experienced significant growth, with its user base soaring from 100,000 in November 2019 to over 35 million by 2024. The company now processes 300 million transactions monthly, reflecting its expanding reach and influence within the digital finance space. The total transaction value on the platform has surpassed N6 trillion, supported by a robust network of 1 million mobile merchants and vendors.
Nwosu acknowledged the challenges faced in addressing the rise in fraud cases, stating, “Recently, there has been a rise in fraud. However, we have gotten some AI and fraud monitoring tools to combat them.” He emphasized PalmPay’s proactive measures to enhance security on the platform, showcasing the company’s commitment to safeguarding its users.
The fintech sector in Nigeria is grappling with significant challenges related to fraud, which has seen a surge in recent months. Industry experts have stressed the urgent need for financial institutions to bridge the widening technology adoption gaps and monitor insider threats. The Financial Institutions Training Centre reported that Nigerian banks lost N42.6 billion to fraud between April and June 2024—an alarming figure that exceeded the total fraud-related losses for all of 2023.
Nwosu also reiterated that promoting financial inclusion remains a top priority for PalmPay. He highlighted the company’s initiatives aimed at extending access to digital financial services, especially for those without smartphones. “The future is about deepening financial inclusion. We want to reach the last man—the people who do not even use smartphones,” he stated, underscoring PalmPay’s commitment to ensuring that everyone can participate in the digital economy.
In a landscape marked by rapid technological advancements and evolving regulatory frameworks, PalmPay continues to adapt and innovate. Nwosu acknowledged that the journey has not been without its challenges, particularly regarding customer onboarding due to regulatory pressures. “Despite these challenges, we remain dedicated to problem-solving and driving innovation within Nigeria’s financial sector,” he added.
As the fintech industry in Africa grows, PalmPay aims to position itself as a leader in addressing not only fraud but also the broader issues affecting digital payment systems. The company’s focus on security and financial inclusion is crucial for sustaining user trust and fostering a vibrant digital economy.
In conclusion, PalmPay’s deployment of advanced technology solutions and its commitment to financial inclusion reflect a proactive approach to overcoming the challenges posed by fraud in Nigeria’s digital payment sector. As the company moves forward, its ability to navigate these hurdles will be essential in shaping the future of fintech in the region.
