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Frequently asked questions about Palm Pay

December 3, 2025

Chibugo Ohanyiri

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With over 40 million users and 15 million daily transactions as of 2025, PalmPay has become a household name in Nigeria. From students and urban professionals to small business owners, the platform has evolved into a digital financial ecosystem that moves money, manages bills, and facilitates short-term credit at scale.

PalmPay offers speed, accessibility, and flexibility, while embedding itself into the everyday rhythm of commerce, from markets to offices, from urban centers to smaller towns.

Yet the convenience prompts questions: How secure is it? What limits exist for transfers, savings, or loans? And how does it compare to alternatives? This article answers the most frequently asked questions about PalmPay, providing clarity for both new and existing users.

What exactly is PalmPay? Is it a real bank?

PalmPay is a digital-first financial platform, legally classified as a Mobile Money Operator (MMO). While it offers banking services like transfers, bill payments, and savings, it doesn’t rely on physical branches like First Bank or Zenith Bank. Instead, it operates entirely through its app and agency banking network (POS agents), allowing it to offer faster services and lower fees than traditional institutions.

How do I register for a PalmPay account?

To register, download the PalmPay app from the Google Play Store or Apple App Store. Enter your phone number and verify it with an OTP. For higher-tier access, you’ll need a valid government-issued ID and your BVN (Bank Verification Number). Completing your profile with these KYC details unlocks full app functionality, including higher transaction limits and access to savings, loans, and card features.

Why do I see PalmPay POS terminals everywhere?

PalmPay has an aggressive agency banking strategy. Those “purple terminals” you see are independent agents who use PalmPay’s infrastructure to help people withdraw cash, send money, and pay bills. They are part of the reason PalmPay processes such a massive volume of transactions daily.

How big is PalmPay

As of 2025, daily transactions reportedly hit 15 million/day. Monthly active users have been estimated in the tens of millions: in 2024, the company said it served around 16 million active users monthly, and over 35 million total registered users. On the merchant/agent side, PalmPay works with hundreds of thousands of mobile‑money agents and merchants across Nigeria.

Does PalmPay cost anything? Fees, promotions, savings returns

One of PalmPay’s selling points has been its push on affordability. They often advertise free bank transfers as part of their efforts to promote financial inclusion. The app offers promotional features: in addition to regular transactions, users can access discounts and cashback, and benefit from a savings product with relatively high yields. For example, in 2024, the company paid out ₦4 billion in interest to users of its “Wealth” savings product. These pricing and reward features make PalmPay a way to grow savings or reduce transaction costs.

Is my money actually safe with PalmPay?

Yes. PalmPay is fully licensed and regulated by the Central Bank of Nigeria (CBN), so it’s not some unverified “loan app.” The company must follow strict rules on financial reporting, user verification, and operational risk, meaning your funds are handled under official oversight.

What happens if PalmPay shuts down? Is my money insured?

Your deposits are protected. PalmPay is covered by the Nigeria Deposit Insurance Corporation (NDIC), just like a traditional commercial bank. In the unlikely event of the platform failing financially, your money is insured up to the NDIC limit, so you aren’t left exposed. This coverage applies to wallet balances and savings products held within PalmPay’s regulated accounts.

How does the app protect me from hackers?

PalmPay uses enterprise-grade security to safeguard your funds. Biometric authentication is required for login and transactions, preventing unauthorized access. On top of that, AI-based fraud detection monitors unusual patterns, such as large transfers from new devices at odd hours, and may temporarily freeze suspicious transactions. These features work together to give users a safer environment for digital finance.

Is it true that transfers are free?

Yes. As of 2024/2025, PalmPay offers unlimited free transfers to all Nigerian banks. This makes it a significant cost-saver compared to traditional banks, which typically charge between ₦10 and ₦50 per transaction. It’s one of the main reasons users prefer PalmPay for regular payments and peer-to-peer transfers.

How much money can I send or receive? (KYC Limits)

Transfer limits depend on your KYC (Know Your Customer) verification tier:

Tier 1 (Phone Number Only): Up to ₦50,000 per day.
Tier 2 (BVN Verified): Up to ₦200,000 per day.
Tier 3 (BVN + ID + Utility Bill): Up to ₦5,000,000 per day.

To access higher limits, you must link your BVN and NIN. Without these, account restrictions may apply, so completing KYC ensures smoother access to larger transfers.

Can I borrow money from PalmPay?

Yes. PalmPay provides borrowing options through its Flexi products, designed to meet different short-term financial needs.

Flexi Credit: This is a “Buy Now, Pay Later” facility for airtime, bills, and in-app purchases. It’s usually interest-free if repaid within the specified window, typically two weeks, making it convenient for everyday expenses without extra cost.
Flexi Cash: This is a cash loan sent directly to your wallet, which you can withdraw or use for payments. Interest is charged daily, so it’s best suited to emergencies or urgent cash needs rather than long-term borrowing. Both options require KYC verification and responsible repayment to maintain access to higher limits.

What is the USSD code for PalmPay?

If you don’t have mobile data, PalmPay can still function via USSD. Dial *861# from the phone number linked to your account. Through this interface, you can check balances, transfer money, and buy airtime without internet access.

Does PalmPay pay interest on savings?

Yes. PalmPay encourages users to grow their funds through CashBox and fixed savings plans. Money stored in these accounts can earn up to 20% annual interest, credited daily. This rate is higher than what most traditional banks offer. It’s an easy way to combine convenience, digital payments, and wealth growth in one platform.

What should I do if a transfer fails, but I was debited?

If a transaction fails but your account was charged, start by checking the app. Go to your transaction history and tap the failed transfer to see if it shows an “auto-reversal” status, which indicates the system is processing a refund.

If the reversal doesn’t happen automatically, use in-app support: navigate to Me > Customer Service to chat with a live agent who can escalate the issue. For more complex cases, PalmPay maintains physical support centers across Nigeria’s major regions, where you can report unresolved complaints in person. Following these steps usually ensures your funds are returned promptly.

How do I upgrade my account if I’m stuck on Tier 1?

To increase your daily limits, you must complete higher KYC tiers. Open your profile in the app, select KYC Level, and upload your BVN along with a valid government-issued ID (NIN, Voter’s Card, or Driver’s License). The verification process is mostly automated and completes within minutes. Once approved, your account limits will be adjusted to the new tier, enabling larger transfers and access to more PalmPay features.

Does PalmPay have a referral program?

Yes. PalmPay rewards both new and existing users through a referral program. When someone signs up with your referral code and completes their first transaction, both parties earn cashback bonuses. The program encourages organic growth while giving users a small financial incentive for introducing friends or family to the platform.

Can I get a PalmPay virtual card, and are there fees?

Yes. PalmPay offers virtual cards for online purchases wherever Mastercard or Visa is accepted. Creating the virtual card is free, and there are no monthly fees. Some transactions, especially international payments, may carry small charges depending on your location and transaction type, so it’s worth checking the in-app terms.

How do I pay bills using PalmPay?

Bill payments are straightforward. Within the app, select the service you want to pay for, enter your customer number, and complete the payment from your wallet. PalmPay often adds discounts or cashback on these payments, making it slightly cheaper and more rewarding than traditional channels.

What common problems do PalmPay users face?

Some users experience failed transactions, delays in loan disbursements, or verification issues. PalmPay addresses most of these through in-app chat support or call centers, and physical offices in major cities help resolve more complex complaints. Most problems are resolved within a few hours to a couple of days, depending on their nature.

How do I reset my PalmPay password if I forget it?

Tap “Forgot Password” on the login screen and follow the verification prompts. An OTP will be sent to your registered phone number or email. Enter the OTP and create a new password to regain access to your account.

How can I contact PalmPay customer service?

Customer support is available in-app via chat, via a dedicated email, and by phone at the numbers listed in the app or on PalmPay’s website. For more complex issues, physical offices in major Nigerian cities provide in-person assistance. Using multiple support channels ensures that most problems can be resolved quickly.

Conclusion

PalmPay functions as more than a transactional tool; it maps the flows, pauses, and urges of everyday financial life in Nigeria. Its impact is measured in how it integrates into routines. By understanding its limits, safeguards, and tools, users gain control over their digital finances without surprises. PalmPay becomes a platform that responds to need rather than dictates it, offering clarity and reliability.