PalmPay Enforces Stricter Account Validation Following CBN Directives

PalmPay, a prominent digital payment platform in Nigeria, has issued a statement instructing its customers to link their accounts with their National Identification Number (NIN) before January 31, 2024, in compliance with directives from the Central Bank of Nigeria (CBN). Failure to comply with this directive may result in the freezing of customer accounts.

PalmPay has introduced a new onboarding flow within its app, making it mandatory for all Tier 1 users to validate their NIN or Bank Verification Number (BVN).

The initiative follows the recent call by the CBN for banks and financial institutions to validate customer accounts with BVN and NIN.

The company emphasized the urgency of the matter, stating that users with valid BVN linked to their accounts must revalidate the information before the specified deadline.

Customers who fail to meet this requirement by January 31, 2024, risk having their accounts frozen.

Chika Nwosu, the Chief Executive Officer of PalmPay, expressed the company’s commitment to contributing to a secure financial ecosystem.

Nwosu urged all PalmPay users to promptly update their Know Your Customer (KYC) information on the app to ensure the seamless continuation of services for their wallets.

The company also highlighted the consequences for defaulting wallets, indicating that freezing would occur by January 31 and March 31, 2024, for different categories of users. This move aims to enhance security and compliance within the digital payment platform.

In a related development, both OPay and PalmPay have recently implemented significant changes in their customer verification processes. These adjustments were made in response to identified loopholes exploited by fraudsters during the account opening procedures. For OPay, alterations in the identification method have been introduced to strengthen the security of bank accounts during onboarding.

PalmPay’s proactive measures align with the industry’s commitment to safeguarding the financial interests of users and maintaining regulatory compliance. Users are advised to act promptly to avoid disruptions to their PalmPay accounts.