The fintech ecosystem in Nigeria has witnessed exponential growth in the last couple of years, not just in significant investments and the volume of financial transactions processed through the sector but also in the different brands that have sprung up in the fintech space.
Keeping up with the number of fintech companies in Nigeria is becoming difficult, with different sources pegging the number of fintech brands in Nigeria between 150 and 250 as of 2022.
The surge in fintech companies means duplication of financial product offerings and copycat brand identity. This similarity is visible among fintech brands with similar prefixes like PalmPay and PalmCredit.
Sharing a similar prefix with PalmCredit while being more popular puts PalmPay brand identity in a fix. However, deciphering the ‘Palm’ brand is essential to unveiling the unique offerings of PalmPay and PalmCredit.
Payment vs Credit
Though PalmPay and PalmCredit both share the prefix—Palm—they are, nonetheless, owned by different companies, with the second part of their names: Pay and Credit—a pointer to their unique financial offerings.
While PalmPay offers its users mobile digital payment options, PalmCredit prides itself as a mobile virtual credit card that offers easy access to loans.
PalmCredit offers its customers access to loan facilities anytime and anywhere, ranging from ₦2,500 to ₦100,000, with loan term durations of 12 to 26 weeks.
To get a loan from PalmCredit is simple. The process is straightforward and takes minutes, with the option to take as many instant loans as a user needs without further approval.
Though both fintech companies share similar prefixes, that’s where the similarity ends. PalmCredit offers loans and nothing more. On the other hand, PalmPay offers so much more.
PalmPay is a digital wallet super app that serves as a comprehensive platform for money transfers, bill payments for utilities, bill management, and even savings, all carried out in one place. In just four years, PalmPay has witnessed explosive growth and now boasts 30 million users on its smartphone apps - tripling its user base from announcing 10 million users only last year.
PalmPay attracts and retains its users through cashback rewards for airtime and bill payments that they can enjoy with competitive savings rates to grow their earnings.
A cornerstone of PalmPay’s strategy is its expansive network of 1.1 million businesses, including 500,000 agents and 600,000 merchants, who embrace PalmPay’s POS or Pay With Transfer services.
Nigeria’s fintech ecosystem remains on the path of growth, and to remain relevant, fintech companies, especially those that share name prefixes, will need to learn a thing or two from PalmPay on how to distinguish themselves from other competing fintech brands by offering superior financial services.