Business & Strategy

PalmPay Resumes Onboarding Users and Merchants, Emphasizes Compliance and Security

Written by Jerry Alomatu on June 11, 2024

News Views: 83

PalmPay has announced the resumption of onboarding users and merchants on its mobile app, underscoring its commitment to enhancing Nigeria’s financial sector with secure and efficient solutions while adhering to regulatory standards set by the Central Bank of Nigeria (CBN).

In a recent statement, PalmPay highlighted its dedication to transforming Nigeria’s financial landscape. Chika Nwosu, Managing Director of PalmPay Nigeria, emphasized the company’s unwavering focus on financial security and inclusion. He stated, “Despite the growing interest in cryptocurrency, PalmPay does not permit cryptocurrency or virtual asset trading on our platform. This policy aligns with CBN regulations designed to protect the financial ecosystem.”

Nwosu explained that PalmPay closely monitors platform activities and takes necessary actions, such as account closures and reporting to authorities, against any cryptocurrency-related transactions. “We are committed to maintaining robust Know Your Customer (KYC) and customer due diligence systems, which help us understand our users and mitigate risks effectively,” he added.

PalmPay’s core mission remains focused on providing a safe and reliable platform for everyday financial needs. To enhance payment security and regulatory supervision, new users are now required to validate either their National Identification Number (NIN) or Bank Verification Number (BVN) during registration. Nwosu advised users to ensure their information is up-to-date before registering and to review the app and website’s terms and conditions.

This move follows a directive from the CBN on April 29, which temporarily halted new customer sign-ups due to concerns over KYC compliance. The ban was lifted on June 3, allowing fintech companies, including PalmPay, to resume onboarding new users.

With these measures, PalmPay aims to continue its mission of driving financial inclusion while ensuring a secure and compliant platform for its users.