PalmPay, a Nigerian fintech with over 30 million users and $6 billion in monthly transaction volume, is considering venturing into the lucrative remittance market as part of its ambitious expansion plans into Asia.
The company has set its sights on the Middle East and Southeast Asia in 2025. While specific details remain under wraps, Managing Director Chika Nwosu confirmed that remittance services are being explored as part of the company’s strategic roadmap.
“We are moving to the Middle East and Southeast Asia and will also expand into other African countries,” Nwosu said during a Q&A session at a media roundtable organised by the fintech last week. “We are conducting research and developing business strategies. Wherever we see opportunities, we will go there.”
This move aligns with a growing trend among African fintechs to tap into the global remittance market, particularly in Asia. Startups like LemFi and Nala have already begun offering services in low- and middle-income countries (LMICs) across the continent, which account for 75% of global remittance inflows.
The World Bank estimates that the official remittances to these LMICs reached $685 billion in 2024, a 5.8% increase from the previous year.
Asia, with its massive diaspora population, presents a significant opportunity for remittance providers. Combined, South Asia, East Asia and the Pacific account for half of the remittances to these LMICs and about two-fifths of global flows. This is not surprising as the region boasts of countries like India, China, and Pakistan which are among the top recipients of remittances in the world. For instance, in 2024, India received an estimated $129 billion in remittances.
These remittances serve as crucial lifelines for many Asian countries, where rather skilled citizens depart to high-income countries in search of greener pastures. On the other hand, these highly-populated countries have cheap labour dynamics which encourages companies to build and staff their businesses there.
For PalmPay, venturing into the remittance market could significantly boost revenue streams and increase its user base beyond its current 16 million monthly active users. As African fintechs seek to diversify revenue sources and navigate local currency volatility, cross-border services like remittances are becoming increasingly attractive.
This move by PalmPay further validates a prediction we made regarding the growing appeal of the remittance market to African fintechs.
