PalmPay Urges Users to Update BVN, NIN as Unverified Wallets Face Closure from January 31
In response to the Central Bank of Nigeria's (CBN) directive aimed at reinforcing Know Your Customer (KYC) procedures for Tier 1 accounts, fintech company PalmPay is urging its users to promptly update their Bank Verification Number (BVN) and National Identification Number (NIN) to avoid potential closure of unverified wallets starting January 31.
PalmPay has introduced a new onboarding flow on its app since the introduction of the CBN directive in December. This mandates all Tier 1 users to validate their NIN or BVN during the registration process. Failure to comply will result in users being unable to complete their wallet registration.
For existing users, PalmPay has outlined the following requirements:
- Existing users who have previously validated their NIN or BVN must revalidate their KYC information by January 31, 2024.
- Existing users who have not yet validated their NIN or BVN must do so by March 31, 2024.
Defaulting wallets will be frozen by January 31 and March 31, 2024, respectively.
Chika Nwosu, PalmPay Nigeria Managing Director, emphasized the company's commitment to fostering a secure financial ecosystem. Nwosu urged all PalmPay users to update their KYC information on the app promptly to ensure the smooth continuation of service for their wallets.
To incentivize compliance, PalmPay has introduced a payment incentive of up to N500 for users who validate their information ahead of the deadline. The company has also strengthened its support operations to assist customers through the validation process.
This move by PalmPay aligns with regulatory requirements and aims to enhance the security and compliance of its financial services platform.