BUSINESS
Increased Smartphone adoption “ll boost financial inclusion – PalmPay

PalmPay, a financial service provider, says smartphone adoption in Nigeria is projected to increase to 65 per cent by 2026, enabling more Nigerians to access mobile money services.
Femi Hanson, 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 on Friday in Lagos.
He noted that increased smartphone adoption would boost financial inclusion in the country.
Hanson also said that fintech companies would leverage innovative technologies such as digital wallets, seamless payment gateways, and USSD to increase service accessibility.
The marketing boss emphasised the importance of collaboration between fintech companies, regulators, and financial institutions to foster a stable financial ecosystem and address compliance concerns.
According to him, such collaboration is crucial to Nigeria’s removal from the FATF grey list.
Hanson also predicted that the demand for affordable financial offerings and savings would increase, creating opportunities for fintech companies to provide solutions.
Quoting a recent report, he predicted further growth in the agency network, which has experienced rapid expansion from fewer than 10,000 agents in 2015 to over 1.5 million agents in 2023.
Hanson noted that mobile money operators would increasingly use Artificial Intelligence (AI) to improve customer experiences, through machine learning, predictive analytics, and fraud detection.
Furthermore, he stressed the diversification of digital services in areas like insurance tech, health tech, and savings and wealth, all on the fintech platform.
Hanson expressed optimism that these developments would enhance financial inclusion and deepen Nigeria’s financial sector.
On PalmPay’s progress, Donald Ubeh, Head of Risk and Compliance at PalmPay, said the company had reached 35 million users and over 1.2 million businesses.
According to Ubeh, PalmPay had provided affordable financial services, convenience, and accessibility to its users.
“We increased our customer base to 35 million users and over 1.2 million businesses,” Ubeh said.
He noted that PalmPay had also contributed to driving a cashless economy and empowering users and Micro, Small, and Medium Enterprises (MSMEs).
Ubeh also highlighted the growth of the digital economy, driven by fintech companies, which had supported financial inclusion and provided livelihood.
He cited statistics showing that Nigeria had 150 million active mobile phone lines, with a financial inclusion rate of 74 per cent in 2023, up from 51 per cent in 2016.
Ubeh noted that agent banking contributed 60 per cent of all mobile money transactions, with over two billion dollars in foreign direct investments and 1.5 million mobile money agents as of 2023.
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).
On the issue of regulation, Ubeh said regulators had provided the framework for the fintech ecosystem, however, challenges remained, including adapting regulations to keep pace with technological advancements, addressing cyber security risks, and ensuring inclusivity in financial services.
Ubeh said that Nigeria had submitted over 50 per cent of the requirements needed to exit the Financial Action Task Force (FATF) grey list, which the country was placed on in February 2023.
Also, Chika Nwosu, Managing Director of PalmPay, said the company had facilitated six billion dollars in monthly transactions, with 16 million monthly active users.
Nwosu noted that PalmPay had achieved a transaction success rate of 99.5 per cent and a customer retention rate of 75 per cent.
According to him, PalmPay operates Nigeria’s biggest financial app and has 36 offices across the six geopolitical zones of the country.
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.
He expressed optimism that PalmPay would continue to expand its services, having established a presence in several markets.