Nigeria’s fast-growing neobank PalmPay is in talks to raise up to $100 million in new funding, as it accelerates its expansion across Africa and into Asia. The proposed financing round, a mix of equity and debt, underscores investor confidence in the continent’s digital banking sector despite rising competition and regulatory scrutiny.
Rapid growth since launch
Founded in 2019, PalmPay has established itself as one of Africa’s most widely used digital banking platforms. The company says it now serves around 35 million registered users and processes 15 million transactions daily, ranging from peer-to-peer transfers to bill payments and merchant services.
Backed by Chinese investors, including Transsion Holdings, PalmPay has leveraged the popularity of Transsion’s mobile phone brands in Africa to grow its user base rapidly. Its low-cost digital wallet and payment services have attracted millions of unbanked and underbanked customers, particularly in Nigeria, where financial inclusion remains a pressing challenge.
Expansion beyond Nigeria
While Nigeria remains its core market, PalmPay has already expanded into Tanzania and Bangladesh, marking its first move beyond Africa. The company is now eyeing further markets in East and West Africa, alongside deeper penetration into Asia, where demand for digital financial services is also surging.
The fresh capital would be channelled into scaling PalmPay’s small-business banking products, broadening credit offerings, and strengthening its infrastructure to handle higher transaction volumes.
Rising competition and regulatory hurdles
PalmPay’s fundraising comes at a time of intensifying competition in Africa’s fintech sector. Rivals such as Opay, Moniepoint, Flutterwave, and M-Pesa continue to battle for market share, while traditional banks are racing to digitise their services.
At the same time, regulators across Africa are tightening oversight of digital banks and payment providers, with new capital requirements and stricter anti-money-laundering rules. Industry analysts warn that compliance costs could weigh on profitability for emerging players.
Investor interest remains strong
Despite these headwinds, PalmPay’s rapid growth and regional ambitions make it an attractive target for investors seeking exposure to Africa’s expanding fintech market. Analysts note that digital wallets and neobanks are increasingly seen as a gateway to offering credit, insurance, and investment products in markets underserved by traditional banks.
If successful, PalmPay’s latest raise could position it as one of the continent’s leading digital financial institutions, with the scale and resources to challenge both regional banks and global fintech entrants.
REFH – Newshub, 13 September 2025
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