On Wednesday, Nigerian fintech company PalmPay announced its plans to enter the remittance sector as part of its expansion to Asia.
With a strong presence in Africa, boasting over 30 million users and handling $6 billion in monthly transactions, PalmPay is now setting its sights on tapping into the thriving global remittance industry.
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Targeting Asia and the Middle East
During a media briefing on January 17, 2025, in Lagos, Managing Director Chika Nwosu shared details about the company’s vision. “We are moving to the Middle East and Southeast Asia and will also expand into other African countries,” Nwosu said.
The decision to target these regions is driven by their large migrant populations who rely heavily on remittance services to send money back home.
Asia, particularly Southeast Asia and the Middle East, represents a massive opportunity for PalmPay. India, for example, received $129 billion in remittances in 2024, making it the largest recipient globally.
Similarly, Southeast Asian countries have seen growing inflows of funds from their citizens working abroad. By entering these markets, PalmPay aims to provide affordable and efficient money transfer solutions.
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Rising competition in fintech
PalmPay’s move into remittances comes as other African fintech companies, such as LemFi and Nala, are also expanding their global footprint.
However, Nwosu emphasised that PalmPay is taking a calculated approach. “Wherever we see opportunities, we will go there,” he remarked, highlighting the company’s commitment to strategic growth.
The remittance market offers immense potential for PalmPay to diversify its offerings and grow its customer base beyond Africa. With millions of people depending on cross-border money transfers for their livelihoods, there is an apparent demand for innovative solutions that make transactions faster and cheaper.
