At a time when most startups are looking for ways to conserve cash, pan-African fintech start-up, PalmPay, has announced the launch of PalmPay CARES, an N100 million ($260k) humanitarian response plan to support the fight against the deadly Coronavirus in Nigeria.
“The PalmPay CARES, support funds will also be used to directly support PalmPay customers that contract the virus with an N100,000 cover,” the company said in a release.
Here Is All You Need To Know
- Part of the N100 million support fund, PalmPay says, will be deployed to strengthen the efforts of the healthcare workers in the frontline by providing relief materials and care facilities as they help prevent, detect, and manage the spread of COVID-19.
- On the criteria to qualify for the N100,000 insurance cover, Palmpay explained that vulnerable communities trying to recover from the economic impact of the virus would be beneficiaries of the humanitarian response plan.
“In addition to the N100 million support funds, PalmPay is proposing a lot of relief and incentives through their product offering to ease the burden during these uncertain times,” the fintech start-up said.
- As part of Palmpay’s support to bend the coronavirus curve in Nigeria, the payment service provider said it has made money transfer transactions across Nigeria free on their Payment app.
“This means you can send money to any Nigerian bank for free. This no-fee service encourages the use of fund transfer to move money and avoid physical contact with other people or handling of physical cash, which can potentially spread the virus,” the company said.
- PalmPay has also incentivised the usage of the payment app to help users get up to N10,000 monthly in form of cashback
- According to PalmPay, more details on the N100 million support fund will publish on its social network @palmpayapp in the coming days.
- Backed by Chinese mobile-phone maker Transsion started its life on a platter of gold in 2019 after raising a $40 million seed-round from Transsion.
A Look At What PalmPay Does
The UK headquartered venture — that was also founded with Chinese seed investment — PalmPay offers a package of mobile based financial services, including no fee payment options, bill pay, rewards programs, and discounted airtime. In Nigeria, PalmPay will offer 10% cashback on airtime purchases and bank transfer rates as low as 10 Naira ($.02).
With its payments focus, the startup enters Africa’s most promising digital sector, but also one that has become notably competitive and crowded — particularly in the continent’s largest economy and most populous nation of Nigeria.
By a number of estimates, Africa’s 1.2 billion people represent the largest share of the world’s unbanked and underbanked population.
An improving smartphone and mobile-connectivity profile for Africa (see GSMA) turns this scenario into an opportunity for mobile-based financial products.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer