PalmPay, an emerging markets-focused, multinational fintech company, has released its forecasts for the mobile money sub-sector in 2025, Techeconomy can report.
Nigeria’s mobile money sector experienced significant growth, in 2024, marked by substantial increases in transaction volumes, user adoption, and strategic investments.
For instance, between January and July 2024, licensed mobile money operators, including PalmPay, processed transactions totaling ₦41.5 trillion.
This represents a 74% increase compared to the ₦23.9 trillion recorded during the same period in 2023.
Given that the total transaction value for the entire year of 2023 was ₦46.6 trillion, the 2024 figures indicate a trajectory toward surpassing previous records.
Flip to 2025, PalmPay is forecasting that with smartphone penetration projected to reach 65% by 2026 as well as improved internet infrastructure, more Nigerians will be enabled to access mobile money services.
Speaking during a media parley at their Lagos office, Chika Nwosu, the managing director, PalmPay, reiterated that smartphone penetration, internet connectivity and innovative technologies as key factors that are crucial to increased access to mobile money services in Nigeria.
According to him, with smartphone penetration projected to reach 65% by 2026 as well as improved internet infrastructure, more Nigerians will be enabled to access mobile money services.
He disclosed that, with fintech companies such as PalmPay evolving through digital wallets and seamless payment gateways, accessibility to mobile money service was bound to expand soon.
He emphasized that with demand for affordability of financial services growing, more opportunities would be unlocked for PalmPay in the nearest future.
“From under 10,000 agents in 2015 to over 1.5 million agents in 2023, agent networks have become the backbone of mobile money operations in Nigeria. For this reason, we are more likely to see a sharp increase in the number of mobile money agents and merchants. Apart from that, MMOs will increasingly use artificial intelligence to improve customer experiences, such as machine learning, predictive analytics, and fraud detection,” he said.
Donald Ubeh, head, Risk and Compliance, MLRO at PalmPay, in a presentation on impact of Fintech, stated that with more collaboration with regulators and other financial institutions, it was only a matter of time that Nigeria’s name will be expunged from the list.
While highlighting the impact of fintech companies such as PalmPay, Ubeh explained that the berth of PalmPay has led to economic empowerment particularly for individual users and several Small and Medium Scale enterprises.
He noted that many Nigerians including bank customers have migrated their funds to PalmPay owing to convenience and accessibility it provides.
He added that mobile money operators were conceived with the aim of driving financial inclusion for the underserved and unbanked population.
According to EFInA, increasing adoption of fintech companies by Nigerians has led to increase in financial inclusion rate by 13% in 13 years.
In his presentation, Femi Hanson, head, Marketing and Communications, PalmPay, disclosed the company’s seven (7) Mobile Money Forecasts for 2025:
1. Financial Inclusion
Fintech companies integrated innovative technologies, such as digital wallets and seamless payment gateways, USSD to expand service accessibility.
2. Collaboration with Regulators, Financial Institutions
More Fintech collaboration with regulators is crucial to fostering a stable financial ecosystem and address compliance concerns to ensure that Nigeria’s removal from the FATF grey list.
Interestingly, just last Friday, the Nigerian government, through the efforts of the National Information Technology Development Agency (NITDA), and the Nigerian Financial Intelligence Unit, (NFIU) have kick-started an initiative that would ensure the exclusion of the country from the FATF Grey List by May 2025.
This initiative was a directive of President Bola Tinubu to the request of the NFIU to develop and implement an Anti-Money Laundering/Counter Financial Terrorism/Counter Proliferation of Firearms Data Management Framework and Platform in collaboration with NITDA. [READ MORE here]
3. Increased Smartphone Adoption
PalmPay has said that increased adoption of smartphones and Internet connectivity will enable more Nigerians to have access to mobile money services, particularly the unbanked and underserved.
Smartphone penetration is projected to reach 65% by 2026, will enable more Nigerians to access mobile money services. – PalmPay
4. Increased Demand for Affordability
The demand for affordable offerings and savings will increase and this is where the fintech will plug in.
5. Extensive Agency Network
From under 10,000 agents in 2015 to over 1.5 million agents in 2023, agent networks have become the backbone of mobile money operations in Nigeria. “We expect to witness growth in this aspect”, Mr. Hanson said.
6. Expansion of AI, Blockchain, and Big Data.
MMOs will increasingly use artificial intelligence to improve customer experiences, such as through machine learning, predictive analytics, and fraud detection.
7. Diversification of Digital Services
“We will see more operations in insurance tech, health tech, savings & wealth all on the fintech platform”, he added.
PalmPay Story:
PalmPay is an emerging markets-focused, multinational fintech founded in 2019.
By leveraging cutting-edge technology, the Fintech makes world-class financial services available to the mass market in regions that need it the most.
PalmPay operates Nigeria’s biggest financial app by monthly active users of 16 million and are rapidly expanding into new markets.
Today, PalmPay serves over 35 million customers and 1.2 million business users with digital accounts, real-time payments and savings and credit solutions.
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