PalmPay, a Nigerian digital bank, is ramping up efforts to promote contactless payment adoption as part of its broader strategy to shape the future of digital finance in the country.
The fintech showcased its commitment at the recent BusinessDay Future of Payment Conference, where industry leaders gathered in Lagos to discuss the evolution of payment systems.
Contactless payments are enabled by technologies like NFC (Near-Field Communication), QR codes, and mobile wallets are emerging as a significant trend in Nigeria’s payment landscape.
While regulatory support has helped the rise of contactless payments, Nigeria’s dependence on cash remains a key hurdle, PalmPay’s Senior Business Development Manager, Ifeanyi Uzoka, said in a panel.
Many Nigerians have contactless-enabled cards, but there are still relatively few places, especially outside major cities, where these can be used for “tap and go” payments.
The executive noted that PalmPay is addressing this gap with secure, accessible technology and recently launched contactless-enabled cards in partnership with Verve.
“While regulatory support has enabled the rise of contactless payments, Nigeria’s heavy reliance on cash remains a major barrier to widespread use,” Uzoka said.
In 2012, the Central Bank of Nigeria launched its cashless policy to modernize the payment system, reduce cash usage, and promote financial inclusion.
CBN released draft guidelines for contactless payments, defining them as transactions completed without physical contact between payer and device, using NFC, RFID, or QR codes.
Uzoka stressed that PalmPay is focused on bridging this gap through accessible technology and enhanced security features.
As part of its inclusive strategy, Uzoka noted that PalmPay recently introduced contactless-enabled debit and premium cards in partnership with Verve.
“Designed with user security in mind, all contactless transactions on PalmPay’s platform are equipped with an extra layer of authentication,” he added.
With a user base of over 35 million Nigerians, PalmPay continues to pioneer innovations aimed at creating a digitally empowered and financially inclusive society.
“It’s push into contactless payments aligns with global trends and affirms the company’s leadership in driving the evolution of financial services in Africa,” he remarked.
