What’s Happening?
PalmPay, one of Africa’s fastest-growing digital banking platforms, is reportedly preparing to raise between $50 million and $100 million in a Series B funding round. While the exact valuation remains undisclosed, the fintech founded in 2019—is already profitable and has amassed over 35 million users, processing millions of daily transactions. The fresh capital will support PalmPay’s ambitious plans to deepen its presence in Nigeria and expand into new African and Asian markets, according to sources close to the company and reports from TechCrunch
PalmPay’s Growth Trajectory and Business Model
Originally launched to serve Nigeria’s vast unbanked population, PalmPay has disrupted traditional banking by offering a mobile-first platform with instant onboarding, zero transfer fees, and a suite of financial services including credit, savings, insurance, and bill payments. Unlike purely digital competitors, PalmPay combines its app with a robust network of over one million agents and merchants, providing cash-in/cash-out services to more than 10 million customers monthly.
This hybrid approach has proven effective in reaching underserved communities and small businesses, a strategy mirrored by other Nigerian fintechs like OPay and Moniepoint.
PalmPay’s transaction volume has surged, with the company reporting 15 million daily transactions valued in the tens of billions annually. Revenue growth has been equally impressive, with 2023 revenues estimated at $64 million and expected to have more than doubled since then. in may 2025 PalmPay announced its plan to Expand into South Africa, Côte d’Ivoire, Uganda and Tanzania
Strategic Partnerships Fueling User Growth
A key factor in PalmPay’s rapid user acquisition is its partnership with Transsion, Africa’s leading smartphone manufacturer. Transsion’s brands, including Tecno and Infinix, hold over 40% of the African smartphone market. PalmPay’s app is pre-installed on select financed devices, significantly boosting downloads and engagement.
Beyond Nigeria, PalmPay has entered Tanzania and Bangladesh, its first market outside Africa—offering device financing and consumer credit as entry points before rolling out more comprehensive financial services. Plans to introduce device financing in Nigeria are also underway.
Investors supporting PalmPay include Transsion, Singapore’s GIC sovereign wealth fund, and MediaTek, a global leader in mobile chipsets. The company is also exploring partnerships with other original equipment manufacturers to expand its device financing strategy.
Expanding Business Services and Cross-Border Payments
PalmPay has recently launched business-focused solutions, including cross-border payments that allow merchants to send and receive funds across Africa through a single API. This service addresses a significant pain point in intra-African trade and is currently operational in Nigeria, Kenya, and Tanzania, with South Africa next in line.
According to company insiders, this business segment already processes hundreds of millions of dollars monthly and is a growing contributor to PalmPay’s revenue.
