PalmPay said to grab $40m in funding and launch in Nigeria

PalmPay, a mobile-payments system, has reportedly netted $40m in funding alongside the launch of its services in Nigeria.

The capital was supplied by smartphone and tablet developer Tecno, with participation also coming from software developer MediaTec and IT company NetEase, according to an article from TechCrunch.

As part of the deal, PalmPay will see its app pre-installed onto 20 million mobile brands Tecno, Infinix and Itel in 2020.

Having secured this new line of capital, the company is looking to grow its services in Ghana and is eyeing moves into other countries during 2020, it said.

With the round closed, the FinTech also launched its service into Nigeria, after a successful pilot period from July, the article stated.

PalmPay is a mobile app which lets users send money for free, pay for airtime and bills, and earn rewards when using the app to conduct payments. The app is available on both Android and iOS.

Earlier in the month, digital payments firm Interswitch reached a $1bn valuation after payments giant Visa invested $200m for a 20% stake. The Nigerian FinTech offers digital payment and commerce solutions.

Nigeria has established a rather strong payments and remittance sector. The country’s FinTech landscape, as a whole, has grown steadily since 2014, with $1.1bn being invested across 168 transactions. Of this, 39.8% of the deal activity has been within the payments space, more than double the percentage of the second most deal heavy space, marketplace lending.

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