PalmPay Launches ₦100 Million COVID-19 Payout Fund for Nigerian Customers

PalmPay, Africa-focused payment startup has launched ₦100 Million COVID-19 payout fund for its Nigerian customers. It will also waive transfer fees and offer direct payouts to customers with COVID-19 disease.

#PalmPayCares and we understand how difficult these times are, which is why today we are announcing FREE money transfers to any Nigerian bank.

The offer is valid for any amount and runs until the 21st of May 2020.

Download or open your PalmPay app to get started. #PalmPayCares pic.twitter.com/laOfgfwUbu

— PalmPay Nigeria (@palmpay_ng) April 20, 2020

PalmPay launched in 2019, supported by a $40 million seed fund led by Transsion. It launched the PalmPay Support Fund tagged #PalmPayCares, and will provide a matching gift for every transaction for the next one month. Information about the fund will be updated on the PalmPay app in real-time.

The initiative starts with ₦100 million and will offer individual payments of ₦100,000 to customers who have contracted coronavirus. PalmPay will also offer monetary grants to organizations fighting coronavirus in Nigeria.

The CEO, Greg Reeve said, “We are proud to be launching this campaign to support our community of users and organizations on the front line of the response to the pandemic. We want our customers to know that we are there for them through these uncertain times; they can be a part of relief efforts too as we will add to the fund every time they transact on the PalmPay app.”

The coronavirus pandemic is spreading sporadically across Africa. Every day, new cases are recorded, leading to cases of emergency and national lockdown in several countries. According to the WHO, as of 21 April 2020, a cumulative total of 15,394 confirmed COVID19 cases with 716 deaths have been reported across the 45 affected countries in the region.

Africa’s top tech hubs – South Africa, Kenya, and Nigeria have imposed social distancing and lockdown practices. Several startups and government organizations are teaming up to create different initiatives to salvage the situation. PalmPay is working with the Nigeria Center for Disease Control (NCDC) to verify customers who claim to have tested positive for COVID-19.

There is a shift from in-person transactions to digital payment solutions in the fintech sector. Reeve also confirmed an increased use of their service because people are not able to move around. “There is a natural uptake right now for services like mobile money and I think when people start to use it, they’ll continue to use it when the COVID-19 ceases,” he said.