PalmPay, Africa payment solution has raised a $40 million seed fund led by Transsion, the Chinese largest mobile phone maker for African consumers. The fund will be used to sponsor its grand entrance into Nigeria. It also looks to grow its fintech offerings in Ghana.
Transsion’s investment in PalmPay came through its Tecno subsidiary. Other participants in the funding round include NetEase, a Chinese firm and Taiwanese hardware firm, Mediatek.
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Described as ‘the payment app that rewards you!’ the UK-headquartered company was launched by Greg Reeve to offer mobile payment solutions in Africa. It received a mobile money license from the Central Bank of Nigeria in July 2019. During the pilot phase, it registered 100000 users and processed 1 million transactions on its platform.
PalmPay officially launched its mobile payment solution in Lagos Nigeria today. Its payment solutions include bill payment, discounted airtime, and no charge payment options. It will offer 10% cashback on airtime purchases and bank transfer rates for N10 per transaction via the mobile app.
The company is in partnership with Visa to link its wallet to Visa products in a bid to connect the unbanked to Visa’s global network. It has also entered a strategic partnership with Tecno, Infinix, and Itel to pre-install its application of 20 million smartphones that will be released in 2020. PalmPay plans to expand to additional markets in 2020 to become the largest fintech platform in the continent.
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