Payment firms plan 5m cards for unbanked Nigerians

Payment firms PalmPay and AfriGO aim to distribute over five million AfriGO cards in a strategic collaboration to expand financial access for unbanked and underserved Nigerians.

According to them, this strategic initiative will enhance payment options for the unbanked while reinforcing Nigeria’s digital economy.

AfriGO, powered by Afrigopay Financial Services Limited—a subsidiary of the Nigeria Inter-Bank Settlement System—is a domestically developed payment solution designed to promote financial sovereignty.

By leveraging AfriGO’s infrastructure, PalmPay is expanding its digital payment offerings to meet the unique needs of the local market.

“At PalmPay, we are committed to creating financial solutions that are not only innovative but also inclusive,” said Managing Director of PalmPay Nigeria, Chika Nwosu, in a statement to The PUNCH.

He continued, “Partnering with AfriGO allows us to deliver secure, cost-effective, and localised payment options that empower Nigerians and strengthen the digital economy. This is a milestone in our mission to redefine financial accessibility in Nigeria.”

Over the years, fintech companies seeking to bridge the financial inclusion gap have faced challenges in expanding into rural areas due to infrastructure deficits and high deployment costs.

Nigeria’s formal financial inclusion rate climbed to 64 per cent in 2023, up from 56 per cent in 2020. This growth was largely driven by the increased adoption of non-bank financial institutions, including fintechs, whose usage surged from five to 12 per cent over the same period.

Yet, despite these advancements, 26 per cent of adults remain financially excluded, with exclusion rates particularly high in rural and Northern regions.

Managing Director of Afrigopay Financial Services Limited, Ebehijie Momoh, emphasised the partnership’s broader impact.

He said, “We are excited to partner with PalmPay to revolutionise financial services and expand access to digital payments across Nigeria.

“Through this collaboration, AfriGO and PalmPay will provide enhanced access to digital payments—particularly in underserved areas—drive financial inclusion, and support the rapidly growing digital economy in Nigeria.”

The AfriGO card is built on EMVCo standards and incorporates tokenisation and contactless payment capabilities, ensuring secure and efficient transactions. PalmPay has seamlessly integrated these features into its digital ecosystem, offering users a frictionless and secure payment experience.

AfriGO cards will enable users to conduct transactions, including physical and online purchases, ATM withdrawals, money transfers, and cashless payments via Agent POS terminals.

The AfriGO Instant Settlement service ensures that merchants and agents benefit from immediate transaction finalisation, leading to greater efficiency, improved cash flow, and reduced risk.