Financial inclusion is a global imperative, central to driving economic development and enhancing livelihoods. Across the world, billions of people remain excluded from formal financial systems, unable to access banking, credit, or insurance services. This exclusion hampers individual prosperity and limits the economic potential of entire regions.
Indeed, the World Bank estimates that 1.4 billion adults globally lack access to formal financial services. Barriers such as high service costs, limited infrastructure, and social inequalities exacerbate this issue, particularly in developing regions. However, mobile technology is emerging as a game-changer. Solutions like digital wallets, mobile banking, and peer-to-peer payment platforms are dismantling traditional barriers, enabling greater participation in the formal economy.
In Sub-Saharan Africa, where mobile penetration exceeds 80%, the potential of digital solutions is immense. In Nigeria, the challenge is particularly pronounced. Despite being one of Africa’s largest economies, over 36% of adults remain unbanked, according to a 2022 EFInA report. Achieving widespread financial inclusion requires innovation tailored to local challenges. PalmPay, one of Nigeria’s foremost financial technology companies has emerged a frontrunner in innovatively tailoring solutions that drive financial inclusion in Nigeria. Its work exemplifies how fintech can adapt to these realities, providing solutions that meet the needs of unbanked and underbanked populations.
Recognized as the Most Outstanding Fintech Company in Financial Inclusion at the 2024 Brandcom Awards, PalmPay’s innovative approach has empowered millions of Nigerians, bridging gaps and creating opportunities. Femi Hanson, Head of Marketing and Communications for PalmPay, reflects on this milestone: “Winning this award validates the impact we’ve made in advancing financial inclusion over the last five years. It’s not just a recognition of our work, it is a reflection of our commitment to making financial services accessible to Nigerians, anywhere and everywhere.”
Central to PalmPay’s success is its commitment to ensuring that every Nigerian, regardless of socioeconomic status, has access to essential financial services. “Financial inclusion, for us at PalmPay, means ensuring that everyone regardless of socioeconomic status or location has access to essential financial services. To achieve this, we’ve developed innovative solutions tailored to address the unique challenges of our environment. Our app is built to support millions of users while maintaining exceptional transaction speeds and reliability, setting a high standard for fintech in Nigeria. This commitment to reliability ensures that users can trust PalmPay for seamless and secure transactions every day.
“Beyond payments, we’ve expanded our platform to include embedded finance solutions, such as insurance, high-yield savings plans, and other essential financial services. And this is available for every Nigerian on the PalmPay app. We have also invested massively in our infrastructure and a robust system that helps maintain transaction reliability, achieving a 99.5% success rate within 10 seconds for transactions, setting a new benchmark for efficiency and reliability,” Hanson explains.
PalmPay’s app serves as a one-stop financial solution, integrating services like bill payments, transfers, high-yield savings, and merchant payment options. Designed to handle millions of users simultaneously, it maintains exceptional reliability, boasting a 99.5% transaction success rate within 10 seconds. This robust infrastructure ensures trust and efficiency, enabling users to rely on PalmPay for daily transactions.
Accessibility is a cornerstone of PalmPay’s approach. Recognizing that many Nigerians lack access to smartphones or internet connectivity, the company introduced a USSD feature (*861#), allowing users to perform transactions without requiring internet access. This innovation has expanded PalmPay’s reach into rural and underserved areas, ensuring that no one is left behind.
Innovative Solutions for Financial Inclusion
PalmPay’s ecosystem exemplifies a holistic approach to financial inclusion. The platform’s zero-transfer fee policy removes cost barriers, while cashback rewards incentivize usage. By hosting over 300 billers, PalmPay ensures convenience, enabling users to pay for utilities, education, and other essentials from a single platform.
The company’s extensive agent network—over 500,000 strong—further enhances accessibility. These mobile money agents bridge the gap between digital and physical financial systems, offering cash-in and cash-out services to users without access to digital tools. This dual approach, combining technology with human touchpoints, creates a comprehensive framework for inclusion.
Hanson highlights the importance of these efforts: “Our agents are the backbone of our service delivery, especially in rural areas. By onboarding unbanked individuals and providing financial education, they’re not just extending our reach; they’re driving real social and economic change.”
Additionally, PalmPay leverages technology to enhance user experiences and ensure security. Artificial intelligence (AI) plays a key role in analyzing transaction data, identifying trends, and optimizing service delivery. “We have utilized Artificial Intelligence (AI) to analyze transaction data, we can track the daily, weekly, and monthly transaction volumes processed by our agents. This helps us identify trends, optimize agent performance, and improve service delivery. Additionally, we analyze transaction counts and volumes across different regions to understand the geographic distribution of activity. This data enables us to pinpoint which regions are the most productive and viable, allowing us to allocate resources effectively and tailor our services to better serve unbanked communities.
“Also, with AI, we could understand users’ transaction patterns to cater for incidents of fake accounts, fraud, and cyberattacks, to ensure account protection. We’ve integrated several security and safety features on the PalmPay app to protect our users from fraud, such as binding their phone to the app, an auto-logout and biometrics features to confirm our users’ identity. In all of these, our goal has always been to reduce fraudulent activities and provide a safe banking environment for all,” he explains.
He also added, “By analyzing user data, we can identify trends, needs, and behaviors that inform our product development and marketing strategies. AI-powered tools help us personalize user experiences and predict customer preferences, ensuring that our offerings are relevant to the market. For example, data-driven insights have allowed us to tailor our app interfaces for different markets such as Nigeria, Ghana, and Tanzania, making them more user-friendly and aligned with the specific needs of each region.”
Security is a key focus, with features like biometric authentication and real-time fraud detection ensuring a safe environment for users. PalmPay’s closed-loop risk management system continuously monitors threats, reducing vulnerabilities and building trust.
Hanson emphasizes the importance of trust in growing adoption: “Many unbanked individuals hesitate to transition to digital platforms because of concerns about fraud and reliability. By prioritizing security and reliability, we’re addressing this trust deficit and encouraging more people to embrace digital finance.”
Empowering Communities Through Partnerships
Collaboration is central to PalmPay’s strategy. The company works closely with commercial banks, regulatory bodies, and local agents to create a seamless financial ecosystem. Partnerships with banks facilitate instant fund transfers, while regulatory alignment ensures compliance with national standards, reinforcing user confidence.
One of PalmPay’s most impactful collaborations is its network of mobile money agents. Its efforts in equipping these agents with branded POS machines and financial tools, PalmPay has extended its services to even the most remote areas. This decentralized model not only enhances accessibility but also creates livelihood opportunities for agents, many of whom operate small businesses.
Measuring Success: The PalmPay Impact
PalmPay’s influence is reflected in its impressive metrics. With over 35 million users and a 75% retention rate, the platform has become a trusted partner for millions of Nigerians. Its affordability and convenience have driven widespread adoption, empowering users to manage their finances with ease.
Beyond numbers, PalmPay’s impact is evident in the stories of its users. Hanson recounts a testimonial from a long-time user who credited PalmPay with transforming their financial management. “Feedback like this motivates us to keep innovating,” he shares. “It’s a reminder that behind every transaction is a human story—one of ambition, resilience, and progress.”
The Road Ahead
As PalmPay looks to the future, its focus remains on deepening financial inclusion and enhancing user experiences. Plans for a super app are underway, integrating additional services like micro-loans, insurance, and investments. Educational campaigns will also play a critical role, teaching users how to navigate the digital economy safely and effectively.
Hanson envisions a future where financial inclusion is no longer a goal but a reality: “Our mission is to give every Nigerian the tools to take control of their finances. Whether it’s sending a child to school or growing a business, we want to be the platform that empowers people to achieve their dreams.”