Is PalmPay Insured by NDIC?
PalmPay is one of Nigeria’s leading fintech platforms, allowing users to make payments, send money, and earn rewards. With millions of active users and growing popularity, many people are wondering: Is PalmPay insured by the Nigeria Deposit Insurance Corporation (NDIC)?
What Is PalmPay?
PalmPay is a mobile-based digital wallet and payment platform that offers:
- Money transfers
- Utility and bill payments
- Debit cards (PalmPay card)
- Cashback and bonuses
- Merchant payments
The platform operates in Nigeria and Ghana and is licensed by the Central Bank of Nigeria (CBN).
Is PalmPay NDIC-Insured?
No, PalmPay itself is not directly insured by the NDIC because it is not a traditional bank or microfinance bank. However, the bank that holds your PalmPay funds is NDIC-insured.
Here’s How It Works:
Your PalmPay wallet is managed in partnership with a licensed financial institution. For example, PalmPay operates in partnership with YES Microfinance Bank, which is NDIC-insured.
That means your funds in the PalmPay wallet are indirectly insured through YES MFB.
What Is the NDIC Coverage Limit?
For microfinance banks like YES MFB, the NDIC insures deposits up to ₦200,000 per depositor. This applies in the event the bank fails—not PalmPay itself.
What Does NDIC Insurance Cover in PalmPay?
- Money in your PalmPay wallet
- Stored balances used for transfers and payments
- Savings products tied to PalmPay’s banking partners
What’s Not Covered?
- Bonus rewards and promo balances
- Non-deposit assets (like PalmPoints)
- Losses from fraud or user error
How to Know If Your Money Is Safe
PalmPay’s official partners, like YES MFB, are licensed and listed on the NDIC website. You can verify their status and be confident that your deposits are covered—up to the insured limit.
Security Measures on PalmPay
Beyond NDIC protection, PalmPay also implements the following safeguards:
- Biometric login and PIN verification
- End-to-end encryption
- Real-time fraud detection
- 24/7 customer support
Conclusion
Your money with PalmPay is protected, thanks to their partnership with NDIC-insured YES Microfinance Bank. While PalmPay itself is not a bank, the funds are held by a regulated financial institution, ensuring you enjoy coverage under NDIC’s deposit insurance scheme.
To stay safe, always keep your app updated, use strong security codes, and verify you’re working within the official PalmPay environment.
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