PalmPay, a Nigerian digital bank, is intensifying efforts to promote contactless payment adoption as part of its strategy to shape the future of digital finance in the country.

The fintech company highlighted its commitment at the recent BusinessDay Future of Payment Conference in Lagos, where industry leaders discussed the evolution of payment systems.

Technologies like NFC (Near-Field Communication), QR codes, and mobile wallets are driving the rise of contactless payments in Nigeria. However, PalmPay’s Senior Business Development Manager, Ifeanyi Uzoka, noted that while regulatory support has facilitated this trend, Nigeria’s continued reliance on cash remains a significant challenge.

Many Nigerians possess contactless-enabled cards, but the availability of "tap and go" payment options remains limited, particularly outside major cities. To address this gap, PalmPay is introducing secure and accessible technology, including the recent launch of contactless-enabled cards in collaboration with Verve.

“While regulatory support has enabled the rise of contactless payments, Nigeria’s heavy reliance on cash remains a major barrier to widespread use,” Uzoka said.

In 2012, the Central Bank of Nigeria (CBN) introduced its cashless policy to modernize the payment system, reduce cash usage, and promote financial inclusion. The CBN also released draft guidelines for contactless payments, which are defined as transactions completed without physical contact between the payer and the device, using technologies like NFC, RFID, or QR codes.

PalmPay's Senior Business Development Manager, Ifeanyi Uzoka, emphasized the company's commitment to bridging the gap in contactless payments through accessible technology and enhanced security features. As part of its inclusive strategy, PalmPay recently launched contactless-enabled debit and premium cards in partnership with Verve.

“Designed with user security in mind, all contactless transactions on PalmPay’s platform are equipped with an extra layer of authentication,” he added.

With a user base of over 35 million Nigerians, PalmPay continues to pioneer innovations aimed at creating a digitally empowered and financially inclusive society.

“It’s push into contactless payments aligns with global trends and affirms the company’s leadership in driving the evolution of financial services in Africa,” he remarked.