PalmPay Expands Savings and Cashback Tools in Nigeria

In Short

• PalmPay is widening its financial services offering in Nigeria, adding more ways for users to pay, save, and earn rewards.
• A key feature is Mega Savings Monday, a short-cycle savings option that can pay up to 25% interest per year, depending on the terms.
• The savings product is provided through a partner microfinance bank, Flexi MFB.

What Happened

PalmPay says it is expanding the set of tools Nigerians can use inside its app as consumers deal with higher living costs. The company is positioning its app as a single place for everyday payments plus savings, bill payments, and cashback.

The new push includes Mega Savings Monday. This is a recurring savings plan that lets users save for eight days and earn interest, then receive the principal plus interest the following Tuesday. Users can withdraw or roll the money back in to keep earning.

PalmPay said Mega Savings Monday is offered via its third-party provider, Flexi MFB. A microfinance bank is a licensed financial institution that can take deposits and offer basic banking services, usually focused on smaller customers and communities.

The company framed the offer as “smarter banking” inside a super app, meaning one app that bundles multiple financial services instead of separate apps for transfers, savings, and bills. PalmPay managing director Chika Nwosu said the goal is to make digital finance more inclusive and to help users get more value from their money.

Why It Matters

Savings products with short lock periods are becoming more common in Nigeria, especially for users who want higher returns but still need quick access to cash. An eight-day cycle lowers the commitment compared to longer fixed deposits.

For PalmPay, bundling savings, transfers, bill payments, and cashback can improve retention. If users manage more of their daily money flows in one place, they are less likely to switch apps.

The “up to 25% per annum” headline rate will matter less than the exact product rules. Users will want clarity on eligibility, how interest is calculated over eight days, and any limits or fees tied to withdrawals or reinvestment.