Expert Highlights Strategies for Driving Digital Payment Adoption in Africa

At the recent Tech Unite Africa 2025 conference in Lagos, PalmPay’s Chief Marketing Officer, Sofia Zab, shared valuable insights on accelerating the shift from cash to digital payments in Africa, as the company introduced its latest innovation: the PalmPay Debit Card.

During a panel discussion, Zab addressed the critical barriers hindering digital payment adoption encountered by PalmPay when the company launched in Nigeria: reliability and cost. She noted that in 2019, many Nigerian consumers and merchants avoided digital payments due to frequent transaction failures and high fees.

To overcome these challenges, PalmPay developed a robust infrastructure ensuring a 99.95% transaction success rate and pioneered a user-friendly model with zero rated bank transfers, fee-free bill payments and cashback rewards.

“Once users experience the benefits, they don’t want to return to cash,” Zab stated. “The key to shifting consumer behaviour is making digital payments more convenient, more rewarding, and less stressful than using cash.” As consumers adopted cashless payments, they began seeking out merchants that would accept payment with transfer, driving digitisation in retail payments organically.

Zab also highlighted PalmPay’s inclusive approach to building a cashless ecosystem, especially in areas with unreliable internet access. Beyond its smartphone app, Nigerians can transact through PalmPay’s nationwide network of mobile money agents, who are equipped with multiple devices and SIM cards from various providers and can transact on behalf of users if a particular network is experiencing an outage.

In 2024, PalmPay went a step further by introducing a USSD code (*861#) for users without data access, and with the new PalmPay Debit Card, its customers now have another access point and can withdraw cash from ATMs or point-of-sale terminals when digital transactions are not feasible.

“For us, the key is about meeting people where they are, rather than waiting for the perfect infrastructure to arrive”, Zab emphasized.

In alignment with its mission to drive financial access, PalmPay unveiled the PalmPay Debit Card at the conference. Developed in partnership with Verve, Africa’s largest domestic card scheme, the card offers zero maintenance fees, easy in-app application with nationwide delivery, and integration into PalmPay’s full suite of financial services – including cashback, merchant rewards, and high-yield savings. This initiative marks a significant milestone in PalmPay’s evolution into a comprehensive digital banking platform.

With over 35 million users on its smartphone app and a MSME network of 1.1 million agents and merchants across Nigeria, PalmPay continues to build one of the continent’s most dynamic fintech ecosystems, dedicated to redefining digital banking to be more personalised, comprehensive, and accessible to everyone.