PalmPay does not give loans, says CEO

Digital payment platform PalmPay has reaffirmed its role as a mobile payment provider, distancing itself from any direct involvement in loan disbursement.

The Mobile Money Operator with 35 million customers explained that all lending activities on its platform are conducted by third-party financial institutions leveraging its ecosystem, not PalmPay itself.

Speaking at a press conference in Lagos on Friday, Chief Executive Officer Chika Nwosu clarified that PalmPay’s core mission is to provide seamless payment solutions and financial services, not to issue loans.

“PalmPay is not a loan company. We provide a platform for third-party financial institutions to offer their services, including loans, to our users. These institutions operate independently and comply with all regulatory requirements,” Nwosu explained.

The clarification comes amid reports that individuals wearing PalmPay-branded clothing have allegedly been involved in arresting loan defaulters, raising concerns about the company’s role in debt recovery practices.

The Central Bank of Nigeria-licensed operator, categorically denied these claims, stating that it does not engage in such activities and has no association with the actions of these individuals.

In a statement in November, the company addressed these misconceptions, saying, “We would like to expressly state that PalmPay is not a loan company, and any claims suggesting otherwise are entirely false.”

PalmPay also condemned the unauthorised use of its branded merchandise in such incidents, vowing to take legal action against offenders.

“Unauthorised use of PalmPay-branded merchandise for such purposes is prohibited, and legal action will be taken against offenders,” the statement added.

The company emphasised its commitment to delivering secure and seamless financial services while promoting financial inclusion across Nigeria.

“PalmPay remains focused on fostering trust and delivering innovative solutions for our users,” Nwosu said.

The company also urged the public to avoid spreading false information about its operations and pledged to take necessary measures to protect its brand from misrepresentation.