PalmPay, one of Africa’s leading digital banking platforms, has announced new strategic partnerships with top insurance providers in a move to introduce simplified and affordable insurance products directly within its mobile app. This initiative is aimed at closing Nigeria’s wide insurance coverage gap and promoting financial inclusion among underserved communities.
The new feature will allow PalmPay’s over 35 million users to buy and manage insurance policies easily through the app. The offerings will include health, life, and device insurance, all designed to be simple, low-cost, and accessible to everyday Nigerians.
Speaking on the development, Head of Wealth Product at PalmPay, Mr. Habib Kowontan, explained that the insurance service is part of the platform’s broader mission to reduce barriers that discourage many Nigerians from getting insured.
“Insurance is often perceived as complex or inaccessible, especially among underserved communities,” Mr. Kowontan said. “Through these partnerships, we aim to break down those barriers by offering simple, reliable, and affordable insurance options that are easily accessible within the PalmPay app.”
Nigeria currently has one of the lowest insurance penetration rates on the continent, with only about 8.9 per cent of the population enrolled in any form of health insurance. Industry observers have long blamed this low uptake on limited awareness, affordability concerns, and a general mistrust of insurance companies.
PalmPay’s new service directly tackles these challenges. By allowing users to sign up for and manage policies digitally, the company aims to eliminate the paperwork, long queues, and bureaucracy that have discouraged many Nigerians from embracing insurance in the past. The platform’s user-friendly interface will enable customers to access protection for themselves, their health, and their devices with just a few taps on their phone.
PalmPay Managing Director, Mr. Chika Nwosu, also emphasised that the move is in line with the fintech firm’s long-term goal of being more than just a payments platform.
“Our goal at PalmPay is to remove barriers and make essential services easily accessible to everyone,” Mr. Nwosu said. “Through these strategic partnerships, we’re expanding our services to be more inclusive and empowering our users with products that will positively impact their lives and finances.”
PalmPay’s journey since entering the Nigerian market has been marked by rapid growth. Apart from transfers and bill payments, the platform also offers services such as high-yield savings, debit cards, and airtime purchases. With the addition of insurance, the platform is now positioning itself as a full-service digital bank capable of catering to various financial needs.
The fintech company believes this latest innovation will not only help improve the financial wellbeing of individuals but will also contribute to the broader national drive toward deepening insurance adoption and reducing the financial vulnerability of low- and middle-income Nigerians.
While the company has not yet disclosed the names of the partner insurance providers, sources suggest they include some of Nigeria’s leading and most trusted underwriters. The focus will be on transparency, quick claims processing, and strong customer service, areas where PalmPay already enjoys high customer satisfaction ratings.
The rollout is also seen as part of PalmPay’s efforts to align with the Central Bank of Nigeria’s financial inclusion strategy, which seeks to ensure that a greater percentage of the Nigerian population is covered by formal financial services.
As fintech continues to transform access to basic financial products across Africa, PalmPay’s move could serve as a blueprint for similar platforms hoping to offer value beyond traditional banking.
