As part of a new security update for its app, PalmPay, a well-known fintech company, requires new users to enter their Biometric Verification Number (BVN) or National Identification Number (NIN) before creating a wallet.
The move aligns with the Central Bank of Nigeria’s (CBN) recent order to strengthen the Know Your Customer (KYC) process and stabilise the banking system.
Managing Director of PalmPay, Chika Nwosu, enthusiastically supported the CBN order, emphasising their commitment to following the rules and ensuring the financial ecosystem is safe.
“We are dedicated to upholding the rules and creating a safe financial environment.” We think this will make users’ wallets and data safer while still letting us provide smooth financial services because we are a forward-thinking fintech platform.
“We have always pushed our users to link their wallets with their BVN or NIN through different in-app activities. “We will drive the new directive,” he says.
To start a PalmPay wallet, new users must now enter their NIN or BVN number. The following is followed by a face recognition step to stop people from pretending to be someone else. However, Nwosu clarified that the goal is to stop scams and make banking safer.
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Wallet creation requires BVN/NIN for new Palmpay users.
The CBN’s latest operational guidelines for deposit money banks (DMBs) emphasise BVNs and NINs in customer profiles, prompting this move. For different account and wallet tiers, the guideline requires BVN and NIN, emphasising electronic retrieval from databases as primary onboarding data.
New Tier 1 accounts lacking BVN or NIN are restricted immediately, and existing ones are restricted until compliance is obtained.
Funded accounts without BVN or NIN will have transaction limits by March 1, 2024.
BVNs and NINs must be electronically revalidated by January 31, 2024, and placeholders and manual client profiles are prohibited to assure compliance.
PalmPay says its monthly Wallet Safety Workshop educates customers on online security, risk mitigation, and financial recovery. PalmPay engages users through the app, social media, and workshops to raise awareness of online fraud.
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Nwosu stressed e-wallets’ transformative power and urged more Nigerians to use safe, easy-to-use digital payment systems.
“In all of this, we think this measure will cut down on fraud and make banking safer for everyone,” Mr. Nwosu said.
PalmPay wants users who may have missed the notice to quickly change their Know Your Customer (KYC) information to follow the new rules and keep using financial services.