PalmPay is a leading mobile money platform in Nigeria that allows users to send, receive, and spend money from their mobile devices easily and securely.
A common question people have is: can I use PalmPay without providing my BVN (Bank Verification Number)? The short answer is yes, you can use PalmPay without a BVN, but with some limitations on account limits and features.
In this comprehensive guide, I’ll provide a detailed breakdown of everything you can and cannot do on PalmPay without a BVN.
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Introduction to PalmPay
For context, let’s first understand what PalmPay is and why people use it. PalmPay is a fintech platform launched in 2019 that aims to promote financial inclusion in Nigeria.
It offers a wide range of mobile money services through its easy-to-use mobile app.
Some key things PalmPay lets you do include:
- Send and receive money instantly
- Pay bills like electricity, cable TV, etc.
- Buy airtime and data bundles
- Pay at select online/offline merchants
- Access quick loans and savings
- Earn cashback rewards on payments
A BVN is a unique 11-digit number issued by Nigerian banks to each customer for proper identification. It is linked to your bank accounts, credit history, and other financial records.
While registering your BVN with PalmPay allows increased transaction limits, it is not mandatory to use the basic features of PalmPay.
This brings us to the crux of this article:
What You Can Do on PalmPay Without a BVN
Even without submitting your BVN details, you can sign up for PalmPay instantly and access many useful features. Here is an overview:
1. Register for a PalmPay account
You can easily create a PalmPay wallet using just your phone number and email address. No documentation is needed at this stage to get started.
The sign-up process involves downloading the PalmPay app, entering your phone number, and creating a secure PIN. An OTP sent to your phone will verify your number.
2. Send and receive money
One of the primary uses of PalmPay is to send or receive money from other PalmPay users. You can instantly send money to any phone number registered with PalmPay.
To receive money, you simply share your PalmPay username or registered phone number with the sender. Transfers between PalmPay wallets are usually free and reflected instantly.
3. Pay bills conveniently
You can pay for a variety of bills directly through your PalmPay app, without needing to link a bank account or debit card. These include electricity bills, cable TV subscriptions, school fees, and more.
All you need is the billing/customer ID provided by the billing organization. PalmPay automatically fetches outstanding amounts when you enter the ID and lets you make secure payments.
4. Purchase airtime and data
Topping up your mobile airtime is easy on PalmPay. You can enter any Nigerian phone number and the amount you wish to recharge. The money gets instantly deducted from your PalmPay balance and the airtime added.
You can also buy mobile data bundles from all major telecom operators using PalmPay. This provides you savings over regular data rates without dealing with physical recharge cards.
5. Online/offline payments
PalmPay lets you pay seamlessly at over 100 partner online/offline stores. This includes eCommerce stores, restaurants, pharmacies, betting platforms, etc.
To pay, you scan a QR code provided by the merchant from within your PalmPay app. The order amount gets instantly transferred without needing cash, cards, or separate payment apps.
6. Access personal loans
An underrated feature of PalmPay is that you can take quick personal loans or advances without submitting documents. This is made possible through PalmCredit, PalmPay’s credit service.
Based on your PalmPay transaction history, you become eligible for loans between ₦500 to ₦100,000. Disbursal happens quickly into your PalmPay wallet which you can use for any expense.
7. Earn cashback rewards
PalmPay also runs cashback campaigns that let you earn money on your payments and transactions. For instance, by paying certain bills or scanning partner QR codes, you can earn 5-10% of transaction value back as PalmPoints.
PalmPoints can be easily redeemed for airtime, data, gift cards, or transferred to your bank account as cash. It’s a good way to save money when paying your regular expenses.
8. Refer your contacts
PalmPay also gives you referral bonuses when your friends/family sign up using your referral code and perform transactions. You can find your unique referral code within the Profile section of your PalmPay app.
As of 2023, both you and the person you refer get ₦200 each as welcome bonus upon registration. You further earn on their first few transactions.
Limits of Using PalmPay Without BVN
While the above highlights key things you can do on PalmPay without BVN, there are certain restrictions to be aware of:
1. Maximum balance limit
The maximum amount you can hold in your PalmPay wallet without BVN is capped at ₦300,000 at any point. This is to ensure compliance with KYC regulations.
If your account balance exceeds this threshold at midnight, further transactions will be temporarily blocked. You will then need to submit your BVN within 30 days for the restrictions to be removed.
2. Daily/Monthly transaction value
In addition to the balance limit, PalmPay also imposes a daily cap of ₦50,000 on total money you can transact without BVN. This is cumulative of all money sent, received, withdrawals or payments in a 24 hour period.
Similarly, you cannot transact over ₦200,000 within a full calendar month from your PalmPay wallet if you have not registered your BVN.
3. Bank withdrawals not allowed
While you can freely transfer money to other PalmPay users without BVN, you cannot withdraw money into your Nigerian bank account.
PalmPay requires your BVN to be linked before money can move from your wallet to any of your bank accounts as an anti-fraud measure.
So if you need to frequently withdraw cash, you may need to submit your BVN details with PalmPay for unrestricted access.
4. Can’t access investment features
PalmPay offers certain high-yield investment products like Flex Save and Flex Naira that can earn you 8-12% annual returns on savings. However, without submitting BVN you cannot invest into these schemes.
Therefore, if you wish to grow your money on PalmPay beyond just wallet balance, linking BVN becomes mandatory to use the investment offerings.
How to Link Your BVN on PalmPay
Based on the above, while using PalmPay without BVN offers convenience for basic features, you miss out on higher limits and additional financial services.
Linking your verified BVN removes all restrictions and unlocks PalmPay’s full potential. Here is a quick 3-step process to link it:
Step 1) Open your PalmPay app and go to your Profile
Step 2) Tap on “Upgrade Account” which will prompt you to enter your BVN number
Step 3) Enter your valid 11-digit BVN and click Submit
PalmPay will instantly verify the BVN with Nigeria Inter-Bank systems and activate your Level 2 account.
Perks of Linking BVN with PalmPay
Once you have linked your BVN, here are some of the key benefits you unlock:
- Increased maximum account balance up to ₦500,000
- Higher daily sends/receives up to ₦200,000
- Monthly transaction value rises to ₦500,000
- Transfer money from PalmPay to Nigerian bank accounts
- Withdraw cash at PalmPay agent locations
- Access high-yield Flex Save and Flex Naira investment offerings
- Increased reliability for merchants to accept payments
- Smooth access to credit/loans up to ₦100,000
Therefore, while using PalmPay without BVN offers basic features, do make it a point to link your BVN over time for unhindered access.
PalmPay Account Tiers
It is also useful to understand PalmPay has 2 account tiers – Level 1 (without BVN) and Level 2 (with BVN). Here is a comparison:
As visible in the table, Level 2 account is better for high transactors and provides the complete PalmPay experience.
Using PalmPay Without a BVN: A Detailed Guide
Conclusion
I hope this detailed guide gave you clarity on using PalmPay without BVN. To summarize key points:
- You can access PalmPay’s basic wallet, payment, and recharge features without BVN, up to certain limits
- Having a BVN lifts all restrictions, allowing higher transaction values and additional offerings
- Linking BVN is recommended over time to unlock PalmPay’s full potential
- Upgrading takes just minutes by entering your 11-digit BVN
For any other questions on getting started with or using PalmPay, visit their website www.palmpay.com or reach out on social media at @PalmPay_NG.
Frequently Asked Questions
Q: If I link BVN later, will my transaction history be lost?
A: No, your transaction history and wallet balance will stay intact when you upgrade to a Level 2 account by linking your BVN.
Q. Can I have more than one PalmPay account?
A. No, as per PalmPay’s terms and conditions, you can only have one PalmPay wallet account on a single registered phone number and BVN at any time.
Q. What information do I need to provide to upgrade my PalmPay account tier?
A. You need to provide your full name as per bank records, valid 11-digit BVN, date of birth, residential address, and preferred bank account linked to your BVN for enhanced KYC.
Q. What if I don’t have a BVN yet? Can I still use PalmPay?
A. Unfortunately without a BVN you cannot use PalmPay right now. To start, you’ll first need to obtain a BVN from your bank branch by providing your documents and biometrics.
Q. Why does PalmPay require BVN when other fintechs don’t?
A. As a licensed mobile money operator, PalmPay has to be compliant with CBN identity verification guidelines. Collecting BVN is important to prevent frauds and enhance security of transactions.