Mobile money operators (MMOs) in Nigeria are banking on a projected 65% smartphone penetration by 2026 to drive the next boom in the adoption of their services.
The Head of Marketing and Communications at PalmPay said this during a media roundtable, organised by the fintech company to discuss industry issues and projections for 2025.
According to him, an increase in smartphone adoption would enable more Nigerians to access mobile money services and boost financial inclusion in the country.
On projections for the year, he said more fintech companies are expected to integrate innovative technologies, such as digital wallets and seamless payment gateways, USSD to expand service accessibility.
He added that the MMOs will increasingly use artificial intelligence to improve customer experiences, such as through machine learning, predictive analytics, and fraud detection.
Achievements of MMOs in Nigeria
Highlighting the progress already recorded by mobile money operators in the country, the Head of Risk and Compliance at PalmPay, Donald Ubeh, said the fintechs pushed financial inclusion in Nigeria to 74% in 2023 from 51% in 2016.
- He said MMOs have deployed 1.5 million mobile money agents as of 2023. These agents contribute 60% of all mobile money transactions.
- He added that over one trillion dollars transactions were processed in 2023, with one billion transactions processed through the Nigeria Inter-Bank Settlement System (NIBSS).
Ubeh, however, noted that there are still challenges despite the growth:
“Despite progress, challenges remain, such as adapting regulations to keep pace with technological advancements, addressing cybersecurity risks, fraudulent practices, and ensuring inclusivity in financial services.”
PalmPay’s performance
Speaking specifically on PalmPay’s performance in the industry, the Chief Executive Officer of the company, Mr. Chika Nwosu said the company had reached 35 million users and over 1.2 million businesses.
“Today, PalmPay serves over 35 million customers and 1.2 million business users with digital accounts, real-time payments, and savings and credit solutions,” he said.
- He added that the company had facilitated six billion dollars in monthly transactions, with 16 million monthly active users.
- Nwosu described PalmPay as a driving force of cashless payment adoption in Nigeria, leveraging cutting-edge technology to make world-class financial services available to the mass market.
- Nwosu also used the medium to clarify the wrong perception of PalmPay as a loan company. According to him, PalmPay’s license does not permit it to grant loans, adding that the company only has a licensed third party leveraging its super app to provide loans to the people.
What you should know
Speaking in a recent interview with Nairametrics, the PalmPay CEO spoke of the company’s plans to become a super app like Alipay.
He said the company is also planning to scale its businesses to other African countries, having set up in Ghana and Tanzania.
Part of the expansion plans also include a move to Southeast Asia countries. He said the company is already in in Bangladesh and working to expand further.
