PalmPay, a prominent fintech company in Nigeria, has announced the implementation of advanced technology solutions aimed at addressing the increasing threat of fraud in the country’s digital payment sector.
The Managing Director of Palmpay, Chika Nwosu revealed this initiative during the company’s fifth-anniversary celebration in Lagos, according to The Punch.
Nwosu acknowledged the remarkable growth PalmPay has achieved but also highlighted the challenges the fintech has faced, particularly in addressing the rising incidence of fraud.
According to him, PalmPay’s user base has expanded significantly since its lunch in Nigeria, growing from 100,000 in November 2019 to over 35 million by 2024.
Additionally, the company now processes 300 million transactions each month, reflecting its substantial impact on the digital payment landscape in the country.
He said the total transaction value on the platform had surpassed N6tn, with a network of 1 million mobile merchants and vendors.
“Recently, there has been a rise in fraud. However, we have gotten some AI and fraud monitoring tools to combat them,” he said, emphasising the firm’s proactive steps to address security concerns.
Meanwhile, experts argue that financial players must address the widening technology adoption gaps and closely monitor insider threats, especially after reporting a loss of N42.6 billion to fraud between April and June 2024.
The Financial Institutions Training Centre disclosed the loss in its Q2 2024 Fraud and Forgeries Report, released in September.
Notably, this figure exceeds the total fraud-related losses reported by Nigerian banks for the entire year of 2023, underscoring the escalating challenges the financial sector faces in combating fraud and ensuring security.
Nwosu reiterated that financial inclusion remains a core focus for PalmPay, emphasizing the company’s commitment to enabling participation in the digital financial ecosystem for individuals without smartphones.
“The future is about deepening financial inclusion. We want to reach the last man—the people who do not even use smartphones,” PalmPay MD remarked.
Despite facing challenges related to fraud and regulatory pressures that have occasionally impacted customer onboarding, Nwosu affirmed PalmPay’s commitment to problem-solving and innovation within Nigeria’s financial sector.
“The past five years have been about problem-solving, innovative thinking, and enabling Nigeria’s financial economy,” he added.
