Palmpay unveils new KYC protocol for users in compliance with CBN directive

PalmPay, a prominent fintech company, has unveiled a fortified in-app security update mandating new users to input their Biometric Verification Number (BVN) or National Identification Number (NIN) before creating a wallet.

The move aligns with the recent directive from the Central Bank of Nigeria (CBN) aimed at bolstering the Know Your Customer (KYC) procedure and fostering financial system stability.

Chika Nwosu, the Managing Director of PalmPay, expressed enthusiastic support for the CBN directive, highlighting their dedication to compliance and ensuring a secure financial ecosystem.

“We are committed to ensuring compliance and fostering a secure financial ecosystem. As a forward-thinking fintech platform, we believe that this measure will enhance the overall security of users’ wallets and the protection of users’ data while providing seamless financial services.” 

Chika Nwosu

“Through various in-app activities, we have always encouraged our users to link their wallets with their BVN or NIN. We are fully aligned to drive the new directive,” he adds.

The process of opening a PalmPay wallet now necessitates new users to provide their NIN or BVN numbers, followed by a face recognition step to deter impersonation attempts. Nwosu emphasised that the aim is to curtail fraudulent activities and foster a secure banking environment for all users.

Read also: PalmPay recovers over $677 million for 853,000 customers, calls for user security

New Palmpay users need BVN/NIN for wallet creation

This initiative stems from the CBN’s recent operational guidelines targeting deposit money banks (DMBs), stressing the importance of BVNs and NINs in customer profiling. The directive specifies mandatory BVN and NIN requirements for different tiers of accounts and wallets, emphasising electronic retrieval from respective databases as primary onboarding data.

The implementation guidelines include immediate restrictions on new Tier 1 accounts without BVN or NIN, placing existing ones without these credentials on a restricted status until compliance is achieved.

To further ensure compliance, the guidelines mandate electronic revalidation of BVNs or NINs by January 31, 2024, prohibiting manual customer profile creation and the use of placeholder BVNs or NINs.

PalmPay says its proactive approach, evident in its monthly Wallet Safety Workshop, reflects a commitment to educating users on online security, mitigating risks, and enabling financial recovery. By actively engaging users through various channels including the app, social media, and workshops, PalmPay aims to fortify user knowledge and awareness against online fraud.

Chika Nwosu emphasised the transformative power of e-wallets, urging more Nigerians to embrace secure, accessible digital payment platforms.

“In all of this, we believe this measure will reduce fraudulent activities and provide a safe banking environment for all,” Mr Nwosu added.

For those who may have missed the directive, PalmPay urges users to update their KYC information promptly to comply with the new regulations and ensure uninterrupted access to financial services.