PalmPay is already gunning for a share of Nigeria’s fintech space, and it seems they are learning from OPay’s strategies.
During its launch this week, the company announced that it received a seed-stage injection of $40 million from the Chinese phone giant, TECNO. A seed-stage injection is usually a monetary backing for small startups or entrepreneurs. Typically, it is provided in exchange for ownership equity in the company.
PalmPay is a platform created for peer-to-peer money transfers, airtime purchase, and bill payments. Like existing fintech players in the Nigerian payment industry, it hopes to extend the convenience of banking and personal finance to everybody. They only need to download the mobile application on a smartphone.
PalmPay partners with other companies
According to a TechCrunch report, about 20 million units of Transsion’s phone brands, Tecno, Infinix and itel, will come preloaded with the PalmPay app in 2020.
In its launch message, PalmPay states that it also partnered with Visa. This partnership will give them access to a network of 100,000 merchants.
According to a company statement:
“We want to provide the best choice and value in the market to customers so that PalmPay becomes a one-stop financial hub, online and offline.”
Possible opposition from OPay
However, it won’t all be flowery for the company from here on. PalmPay would likely face stern competition from the OPay brand who is currently on an aggressive growth path by means of promotions and price slashes.
To keep up, they would need to at least go toe to toe with OPay in motivating people to use their platforms.
Ultimately, this competition can only mean that both companies will engage in a sort of commercial war. The sure winners will be the consumer base; they would most likely enjoy benefits such as price slashes, bonuses and more.