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Palmpay is a digital-only bank that offers a range of banking services via its mobile banking application. PalmPay is a product of Transsnet Group, the joint venture between NetEase Group (NASDAQ: NTES) and Transsion Holdings Group.
PalmPay offers financial services to meet the daily needs of many users across Africa; like top-up funds electronically, making transfers, and paying for airtime and other bills. Although launching today, PalmPay’s history shows that the play was to advance financial inclusion across Africa, through access to real-time digital payment services.
Kuda Bank which was founded by Babs Ogundeyi and Musty Mustapha in 2019 has been in operation in Nigeria and the UK.
Kuda Bank is a full-service digital-only bank that enriches lives by helping people live healthier financial lives.
The bank is on a mission to give all Africans on the planet access to the best banking rates at prices they can comfortably afford. Kuda bank has become an incredible story in the tales of digital banks thriving in the country with over 4.2 million users. Majorly, because of the benefits that this platform provides.
Table Comparing Kuda and Palmpay across major features
|No of Downloads||5M+||5M+|
|Appstore Rating(Playstore)||4.5(334k reviews)||4.0(184k reviews)|
|Free transfer||10 free transfers||25 free transfers|
|Alternative Channels||None||USSD, ATM card|
Related reading: Kuda Bank: One incredible digital story
Feature-specific differences between Kuda and Palmpay
App useability: Kuda vs Palmpay
Merchant POS: Kuda vs Palmpay
POS merchants are a common sight on the streets of Nigeria. The growth of PoS transactions is bridging the gap created by the shortage of Automated Teller Machines (ATMs) deployed by banks, as many Nigerians now withdraw through PoS agents.
According to the Central Bank of Nigeria 2019 National Financial Inclusion Strategy document, the number of banking agents rose by 517 percent to 236,940 agents in December 2019 from 38, 416 agents in December 2018
Palmpay has a thriving agent payment network that allows individual agents to obtain a POS terminal from the company and offer payment services to customers in their locality.
Kuda bank is not into agency banking and does not issue PoS terminals to merchants.
Free Transfer: Kuda vs Palmpay
In order to attract customers, Kuda and Palmpay offer free transfers for customers to make use of their platform.
Cashbacks and Discounts: Kuda vs Palmpay
Palmpay offer cashback on referrals. Opay offers ₦800 cashback on referrals while Palmpay offers ₦500 cashback on referrals
Kuda Bank does not offer cashback on referring customers to its platform
Palmpay has palm coins feature that rewards you with coins when you perform different tasks on the application. Examples of these tasks is referring someone, adding a bank card to your account etc.
Kuda Bank does not offer incentives in form of cashbacks
Investor Backing: Kuda vs Palmpay
Transsion Holdings, the company behind the TECNO, Infinix and Itel brands, is the company behind the mobile payments company PalmPay. PalmPay is backed by $40 million in funding for its launch and activities in Africa.
Alternative Channels of Banking: Kuda vs Palmpay
Kuda also has debit card issues to customers. The card can be requested on the mobile app and it will be delivered to your doorstep free of charge. The Kuda debit card has been enshrined in a lot of downtime issues over time. However, the startup demonstrates commitment to fix the issues thrrough regular communication.
Kuda Bank does not have its own dedicated USSD code, However, there is a workaround that it engages with other major banks to allow their customers to add money seamlessly to their account.
Palmpay does not have a USSD feature.
Savings and Investment: Kuda vs Palmpay
Opay has a savings and investment feature. Owealth by Opay is an investment initiative that offers 15% interest on the first ₦100,ooo in your account and 11% on the rest of your money above ₦100,ooo. Usually money in your Opay wallet is automatically subscribed to the OWealth plan and you can withdraw anytime
Kuda has a spend and save feature that allows you to save a certain specified amount of money once you spend a certain amount. This feature is impressive as it can help in cultivate the art of saving.
Related: How does Opay make Money?
Palmpay allows you to convert airtime on your MTN line to cash. As of this writing, only MTN is supported. This feature can be vital if you recharge an excess amount
This feature allows Palmpay agents to request refunds for faile
Value added services: Kuda vs Palmpay
Kuda and Palmpay apps allow you to buy airtime, pay for cable TV e.g Dstv, Gotv, Startimes, buy power from the different distribution companies IBEDC, IKEDC etc, pay water bills and buy scratch cards for the different exam bodies.
Prospects : Kuda vs Palmpay
The shift towards increased internet consumption in Africa is driving growth in the Internet industry. Digital only banks are not very common among internet savvy users in Nigeria. Kuda and Opay have acquired millions of useers within the apsce of 4 short years.
Transsion Holdings, the company behind popular brands TECNO, Infinix, and Itel, offers a range of Africa-centric apps, including Vskit and Boomplay. MediaTek, one of the world’s largest fabless semiconductor companies, provides technology for over 1.5 billion devices, including TECNO, Infinix, and Itel. – Techpoint Africa
By leveraging Transsion’s extensive network of TECNO, Infinix, and Itel devices, PalmPay has the potential to gain a significant presence in Africa’s mobile and online payment market. This is demonstrated by Transsion’s successful platforms, such as Boomplay, which has over 53 million African users.
On the other hand, Kuda Technologies Ltd is the company behind
Having been in the market longer, OPay has acquired many customers across a suite of products that includes, quick loans, and food delivery.
Conclusion: Kuda vs Palmpay
Palmpay and Kuda are both reliable to a large extent and provide users with a wide range of incentives to attract them to their platforms.