PalmPay, a rapidly growing financial platform serving more than 30 million users in Nigeria, has taken a monumental step toward increasing financial accessibility across the country. The fintech company recently launched a USSD code, offering millions of Nigerians a way to manage their finances without requiring internet access. By dialing *861# on their mobile phones, PalmPay users can now perform a variety of essential financial transactions.
This move is a game-changer for many Nigerians, particularly those living in rural areas where internet connectivity is either unreliable or inaccessible. In a country where digital financial services are transforming everyday life, this new development has the potential to further drive financial inclusion, providing a solution for individuals who, until now, have struggled to access basic banking services due to poor internet coverage or lack of access to smartphones.
Breaking down Barriers: Why the USSD Code Matters
PalmPay’s introduction of a USSD code marks a significant shift in the Nigerian fintech landscape, and here’s why;
Nigeria, Africa’s largest economy, faces a major challenge when it comes to digital inclusion. Although the country’s urban centers such as Lagos, Abuja, and Port Harcourt are well-served by internet providers, millions of Nigerians in rural areas experience constant network interruptions and lack affordable internet access. For many of these individuals, smartphones are a luxury item, and data services are too expensive to use regularly.
This is where USSD (Unstructured Supplementary Service Data) comes into play. USSD codes allow for quick and simple interactions between a user’s phone and a service provider’s computer network. With no need for internet, it enables users of feature phones, which are more affordable than smartphones, to access essential services such as banking.
By launching *861#, PalmPay is offering a critical solution for these underserved populations. The service allows users to make transactions like money transfers, bill payments, and account inquiries, all via their mobile phones, without the need for internet. This development ensures that individuals, regardless of their location or device, can stay connected to essential financial services.
Bringing Financial Services to the Masses
Since PalmPay began operations in Nigeria in 2019, the company has continually strived to provide comprehensive financial services that empower users to take control of their finances. PalmPay’s mobile app offers a wide range of services, including money transfers, bill payments, airtime purchases, credit services, and savings, all within one easy-to-use platform.
With over 30 million registered users, PalmPay has quickly become one of the leading financial technology platforms in Nigeria. However, its latest initiative—the launch of its USSD service—is particularly noteworthy, as it expands the company’s reach even further, connecting those who have long been excluded from formal financial systems.
“At PalmPay, we aim to bridge the gap in digital access,” said Chika Nwosu, Managing Director of PalmPay in Nigeria. “The introduction of our USSD service aligns with that mission. Our platform ensures seamless connectivity for our users, even those without access to the internet.”
This new service is not just about accessibility; it’s also about security. “Our USSD platform comes with a security feature which allows our customers to remotely freeze their accounts in case their phone is lost or stolen, providing an extra layer of protection to safeguard their finances,” Nwosu added.
A Broader Impact on Financial Inclusion
The introduction of the USSD service is a bold step towards promoting financial inclusion in Nigeria, a country where a large proportion of the population is still unbanked or underbanked. According to data from Enhancing Financial Innovation and Access (EFInA), about 36% of Nigerian adults (roughly 38 million people) do not have access to formal financial services.
For those who are unbanked, financial services are often out of reach, making it difficult to save money, access credit, or even receive remittances from family members working in other parts of the country or abroad. Many individuals in rural areas have traditionally relied on informal savings groups or local agents to manage their money, which can expose them to high transaction costs or fraud.
PalmPay is helping to change this narrative. By launching a USSD platform that caters to users without smartphones, the company is opening up a whole new world of financial opportunities for millions of Nigerians. The service empowers customers to take charge of their finances, helping them save money, make purchases, pay bills, and even secure credit—all from the convenience of a mobile phone.
Connecting with a Vast Network of Agents
PalmPay has established itself as a major player in Nigeria’s fintech space by building an expansive network of over 500,000 mobile money agents across the country. These agents provide crucial services such as cash deposits, withdrawals, and transfers, especially for customers who do not have direct access to formal banking institutions. The introduction of the USSD code builds on this foundation by allowing customers to perform these transactions on their own, wherever they may be, even in the most remote locations.
For many customers, these agents are their first point of contact with formal financial services. In fact, PalmPay reports that nearly a third of its users opened their first-ever financial account through the platform. This demonstrates the powerful role that fintech companies like PalmPay can play in driving financial inclusion and bringing millions of unbanked individuals into the formal economy.
USSD: A Critical Solution for Network Challenges
Another key advantage of USSD services is their ability to function independently of internet connectivity. In Nigeria, where frequent power outages and network disruptions are a common occurrence, many users experience frustration when trying to complete financial transactions using mobile apps that rely on internet access.
PalmPay’s USSD code offers a reliable alternative. By eliminating the need for an internet connection, the service ensures that customers can still perform transactions, even when the network is down or data services are unavailable. This is particularly important in rural areas, where data coverage is often unreliable, making it difficult for users to access traditional mobile banking services.
Enhancing Financial Security
Security is a top priority for PalmPay, and the USSD service includes a crucial security feature that allows users to remotely freeze their accounts in the event that their phone is lost or stolen. This feature provides users with peace of mind, knowing that their funds are protected, even in the event of theft or fraud.
In a country where cybercrime is a growing concern, this added layer of security is a welcome development. By enabling users to lock their accounts remotely, PalmPay is empowering its customers to take control of their financial security and protect their hard-earned money.
The Role of PalmPay in Nigeria’s Fintech Ecosystem
Since its launch in 2019, PalmPay has achieved remarkable success in Nigeria, becoming a dominant player in the country’s rapidly evolving fintech sector. With a user-friendly interface, reliable transactions, and a focus on affordability, PalmPay has attracted millions of users and helped to shape the future of financial services in Nigeria.
One of PalmPay’s key strategies has been to offer fee-free transfers and promotions, making it an attractive option for users who are looking for cost-effective ways to manage their money. This approach has helped PalmPay gain significant market share and build a loyal customer base.
PalmPay’s commitment to innovation has also been recognized on the global stage. Recently, CNBC and Statista ranked PalmPay as one of the World’s Top 250 Fintech Companies for 2024, highlighting the company’s achievements and its growing influence in the fintech sector.
What’s next for PalmPay?
With the launch of its USSD code, PalmPay has solidified its position as a leader in Nigeria’s fintech ecosystem. The company’s focus on accessibility, security, and financial inclusion is driving positive change across the country, empowering millions of people to take control of their finances and access essential services.
Looking ahead, PalmPay is likely to continue expanding its services and exploring new ways to improve the financial well-being of Nigerians. As the company grows, its commitment to making financial services more inclusive and accessible will remain at the heart of its mission.
In Conclusion
PalmPay’s launch of its USSD code is more than just a technological upgrade—it’s a critical development for the millions of Nigerians who lack access to reliable internet or smartphones. By offering a simple and secure way to manage finances without needing an internet connection, PalmPay is empowering individuals across the country, ensuring that no one is left behind in the digital financial revolution.
As Nigeria continues to embrace digital transformation, initiatives like PalmPay’s USSD service will play an essential role in bridging the gap between those who have access to digital financial services and those who do not. With its user-friendly platform, commitment to security, and nationwide network of mobile money agents, PalmPay is not only changing the way people bank but also shaping the future of financial inclusion in Nigeria.
Written By Chiamaka Adindu