PalmPay, a prominent fintech platform boasting over 30 million registered users, has introduced a stringent requirement for new users.
The latest in-app update mandates that individuals provide either their Bank Verification Number (BVN) or National Identification Number (NIN) during the wallet creation process.
The impetus behind this stringent measure stems from a surge in fraud cases reported by victims, with some incidents allegedly involving the misuse of wallets on fintech platforms.
PalmPay’s response aligns with recent directives from the Central Bank of Nigeria (CBN), which underscores the necessity for BVN or NIN when opening new Tier 1 accounts or wallets.
The CBN further outlines that existing accounts lacking these credentials, especially those without funding, will face restrictions until compliance is achieved.
Chika Nwosu, the Managing Director of PalmPay, expressed the company’s commitment to compliance with the CBN directive.
Nwosu emphasized the initiative as a pivotal step in enhancing overall wallet security and safeguarding user data within a seamless financial services framework.
The company encourages new users incorporating their NIN or BVN to also undergo a face recognition process, further underscoring PalmPay’s dedication to reducing fraudulent activities and fostering a secure banking environment.
Users are urged to promptly update their Know Your Customer (KYC) information on the app to align with the regulatory directive.
PalmPay’s proactive approach reflects a commitment to user security and compliance with evolving regulatory standards.