Transsion Holdings, the parent company of TECNO, Infinix and itel – is the latest international company to join the bandwagon of African mobile payments with ‘PalmPay‘. The service which officially launched on Wednesday, 13th November 2019, is backed by a $40 million investment raised from Transsion, Chinese internet giant NetEase and Mediatek, a Taiwan-based communications hardware firm. While not a direct Transsion product, PalmPay is owned by Transsnet – a joint venture firm between Transsion and NetEase.
According to the company, PalmPay will offer financial services to meet the daily needs of many users across Africa; like top-up funds electronically, make transfers, and pay for airtime and other bills.
Back in July, PalmPay had piloted its mobile fintech business in Nigeria when it received approval from the Central Bank of Nigeria to operate a mobile money business before it officially launched. During its pilot phase, the payments startup garnered 100,000 users and processed 1 million transactions.
As part of the investment, PalmPay will have a strategic partnership with mobile brands under Transsion – Tecno, Infinix, and itel, which includes pre-installation of the startup’s app on 20 million phones in 2020. This will undoubtedly be a significant market advantage for PalmPay ahead of competitors like OPay as Transsion dominates the market share for Africa’s mobile phone sales.
In addition to Nigeria, PalmPay will also operate in neighbouring Ghana and plans further expansion across the continent next year.