PalmPay Launches First Debit Card in Partnership with Verve, Marking a Shift Towards Local Card Schemes

PalmPay, the Nigerian fintech with over 35 million users, has unveiled its first debit card in collaboration with Verve, marking a significant milestone in its transition from a mobile wallet to a comprehensive digital financial platform. This move aligns with the broader trend of Nigerian fintechs shifting toward local card schemes, as increasing costs and declining international spending make global providers like Visa and Mastercard less appealing.

The launch of the debit card follows Palmpay’s partnership with the national domestic card scheme, AfriGo, just three weeks prior, with plans to distribute five million contactless payment cards across Nigeria.

Now, PalmPay is integrating Verve-powered debit cards directly into its digital wallet. The company has stated that the cards will be distributed through its network of over one million agents across the country. Given its vast reach, PalmPay aims to onboard millions of cardholders by the end of the year.

The PalmPay debit cards are offered in two versions: a standard option available to all users and a premium version tied to a new membership program. To qualify for premium status, users must maintain a monthly balance of at least ₦20,000 and make transactions totaling at least ₦500,000 each month. Premium members will earn up to 36% annual savings interest—compared to 20% for standard users—and enjoy higher cashback rewards and merchant discounts.

Why is this happening now?

According to Sofia Zab, PalmPay’s chief marketing officer, the company has spent years focusing on building scale, user trust, and backend infrastructure. It wasn’t until PalmPay was able to deliver card services fully integrated into its wallet that it decided to launch the product.

“There are third-party APIs that let you quickly launch prepaid cards, but we chose a more thoughtful approach,” Zab explained. “We formed a direct partnership with Verve to create a product that genuinely meets the needs of Nigerian consumers.”

This debit card launch is part of the larger trend among Nigerian fintechs forming alliances with local card schemes in response to increasing costs from international card providers and reduced consumer spending. Companies like Opay and Moniepoint have issued about 17 million Verve cards since the pandemic, moving away from global partners like Visa and Mastercard. Carbon, the Nigerian digital bank known for its loans-based banking model, has also teamed up with Verve to restart debit card issuance, nine months after halting operations.

The timing of PalmPay’s debit card launch coincides with a growing preference within Nigeria’s fintech ecosystem for bank transfers. HabariPay, the fintech arm of one of Nigeria’s largest banks, is betting on an increase in transfer volumes. Paystack has also launched Zap by Paystack, its first consumer app, focusing on boosting transfer volumes.

Despite the rise in bank transfers, PalmPay maintains that debit cards still cater to a critical segment of Nigerian consumers.

“Not every user is a young, digital-first Lagosian. Some live in areas with limited phone access or prefer the flexibility to shop online,” Zab remarked. “If we want to serve every Nigerian, we need to build for every Nigerian, and that means offering access through our app, our agents, USSD, and now, debit cards.”

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