PalmPay Sends Message to Customers as 3 Million Bank Accounts Risk Shutting Down

• PalmPay has told customers to update their accounts before January 31, 2024 deadline given by the CBN
• This followed an earlier directive by the CBN to banks directing that BVN and NIN be electronically revalidated
• In light of this, PalmPay has created an easy step to help customers upgrade their accounts on its app

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

PalmPay has asked customers to update their Know Your Customer (KYC) ahead of the Central Bank of Nigeria's (CBN) January 31, 2024 deadline directing fintech company users to upgrade their wallets.

This comes after Legit.ng reported that about three million bank accounts may be blocked as the deadline for all bank accounts to have a Bank Verification Number (BVN) or National Identity Number (NIN) draws close.

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The CBN, on December 1, 2023, issued a circular to all commercial, merchant, non-interest, payment service banks, financial institutions, and mobile money operators, asking that the BVN or NIN attached to and associated with all accounts and wallets be electronically revalidated by January 31, 2024.

Steps for customers to update their accounts

In response to the CBN's recent order, PalmPay has published an updated in-app version that requires all new users to input their BVN or NIN numbers before a wallet can be created.

PalmPay users are required to log into their app and follow the steps to upgrade their wallet KYC level using their BVN and NIN.

• Click on your profile and access your KYC Levels.
• Click on "Upgrade" at the bottom of the page showing your account KYC level.
• Fill out the form with your correct details and submit it for verification.

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Chika Nwosu, managing director of PalmPay, spoke of the firm's commitment to complying with the directive to secure the financial ecosystem.

He said:

“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.

“In all of this, we believe this measure will reduce fraudulent activities and provide a safe banking environment for all.”

PalmPay explains why Nigerian banks lost N6bn to fraud

Legit.ng earlier reported that PalmPay explained why many people fll victim to cyber scams and lose their money or valuables.

The Nigerian-based fintech company, in a report, highlighted that failing to report fraudulent transactions early enough allows criminals to move the stolen funds to safe places.

It stated that only 33% reported the same day or took the necessary right action on the same day of the event.

Source: Legit.ng