PalmPay, a prominent fintech firm, has announced the implementation of cutting-edge technology solutions aimed at addressing the increasing threat of fraud in Nigeria’s digital payment landscape. Chika Nwosu, the Managing Director of PalmPay, shared this update during the company’s recent fifth-anniversary celebration held in Lagos.
He acknowledged the impressive growth the company has achieved while also highlighting the challenges it has faced, particularly in dealing with the rise in fraud incidents.
Since its inception in Nigeria, PalmPay’s user base has expanded dramatically from 100,000 in November 2019 to over 35 million by 2024, and the company now processes approximately 300 million transactions every month.
Nwosu noted that the total transaction value on the platform has exceeded N6 trillion, supported by a network of one million mobile merchants and vendors. “Recently, we have seen an uptick in fraudulent activities. However, we have implemented AI-driven tools and fraud monitoring systems to counter these threats,” he said, underscoring the company’s proactive measures to enhance security.
In the meantime, experts have emphasized the need for financial institutions to close the growing gaps in technology adoption and closely monitor insider threats, especially after losses of N42.6 billion to fraud between April and June 2024. This figure was disclosed in the Financial Institutions Training Centre’s Q2 2024 Fraud and Forgeries Report, published in September, and it exceeded the total fraud-related losses reported by Nigerian banks for the entire year of 2023.
Nwosu reiterated that promoting financial inclusion remains a central objective for PalmPay, highlighting the company’s commitment to ensuring that even individuals without smartphones can access the digital financial ecosystem. “The future is focused on deepening financial inclusion. Our goal is to reach everyone, including those who do not own smartphones,” remarked the PalmPay Managing Director.
Despite facing challenges related to fraud and regulatory pressures that have occasionally affected customer onboarding, Nwosu reaffirmed PalmPay’s dedication to innovation and problem-solving within Nigeria’s financial sector. “The past five years have revolved around addressing challenges, fostering innovative thinking, and advancing Nigeria’s financial economy,” he concluded.
