A new security in-app update by PalmPay will now demand that all new users provide their BVN or NIN numbers before creating a wallet on the mobile app.
The company has over 30 million registered users and is wooing new users to download the app to begin their financial journey. However, the rising cases of fraud and reports by victims of these frauds alleging the use of wallets on the fintech platforms necessitated the new measure by the company.
The company also said the new update complies with the directive of the Central Bank of Nigeria (CBN) recently. The CBN circular jointly signed by Chibuzo Efobi, director of Payment System Management Department, and Haruna Mustafa, director of Financial Policy and Regulation Department, states that no new Tier 1 accounts or wallets can be opened without BVN or NIN.
For existing accounts without BVN or NIN, unfunded accounts will be placed on ‘Post No Debit or Credit’ until the requirements are met. Starting March 1, 2023, all funded accounts without BVN or NIN will also be restricted from transactions.
Chika Nwosu, managing director, PalmPay, said the CBN directive was a welcomed development and PalmPay is committed to ensuring compliance and fostering a secure financial ecosystem.
“As a forward-thinking fintech platform, we believe that this measure will enhance the overall security of users’ wallets and the protection of users’ data while providing seamless financial services,” Nwosu said. “Through various in-app activities, we have always encouraged our users to link their wallets with their BVN or NIN. We are fully aligned to drive the new Directive.”
The company noted that new users who input their NIN or BVN would also be required to proceed to the face recognition process.
“In all of this, we believe this measure will reduce fraudulent activities and provide a safe banking environment for all. We encourage users to update their KYC information on the app to ensure compliance with the directive,” Nwosu said.
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