Kuda vs Palmpay: Which is Better?

Having contributed to the liquidity of funds in the country, both Kuda and Palmpay are interesting Fintech platforms. During the cash crunch observed in the period, many worried as to what alternative is the best to keep their funds. Not just keeping their funds, but both being able to withdraw them and use them as at when needed. Even with the good work both Kuda and Palmpay have contributed to the Nigerian economy, they still have some work in their hands to do to move to the next level. In the meantime, however, between Kuda vs Palmpay: Which is the best? I’ll leave that answer to you. Our article today dissects the question above.

Kuda vs Palmpay: Merchant POS

When looking at both companies, you’ll observe one of them does have POS agents nearly everywhere in Nigeria and the other does not. For Palmpay, you’ll come across their POS terminals nearly in every state. Of course, this may not be a clear indication that they have an overall benefit than the other Microfinance banks in Nigeria.

Kuda Microfinance Bank doesn’t have a large network of POS agents in the country. They do not offer POS terminals machine to agents. Instead, with their app you can perform nearly all the transactions you can do on a POS machine. However, if you prefer doing your service on a Point of Sale Terminal, Palmpay may be great for you.

Kuda vs Palmpay: Transfer fees.

One of the major factors in choosing what Microfinance Bank to finance with balls down to the transfer charges. The transfer fees must not be too much so it doesn’t chase customers away. Both Microfinance companies, they’re performing a great job in this regard. Both allow users to transfer money to other customers without getting charged.

For Kuda Microfinance Bank, it allows customers to perform transactional transfers at least 25 times in a month before getting charged any fee. Of course, one would wonder: After the 25 free transfers, would one still be charged if it has been exhausted? Yes! After you have exhausted the 25 free transfers, you’ll be charged a token. However, monthly you are allowed to perform the free transfer fees.

While for Palmpay, Palmpay of course offers transfer-free charges. However, it is limited to the number of times each day. Each day you are allotted 3 free times to transfer for free. After transferring for free, you’ll be charged 10 naira for every transfer to a Bank. In this regard, both allow for that.

Kuda vs Palmpay: Incentives

Incentives are what make customers attracted to a platform. Incentives include referral cashback, daily cashback, and the like.

Speaking of referral cashback, Palmpay hands aren’t short in this regard. For Palmpay for every person that joins the platform with your referral link, you get a whopping sum of 500 naira. This money can be withdrawn if you’re broke or without funds in your account. this referral cashback is what customers do to make their account liquid. Also, you get cashback every day for every transaction that has been completed with the app.

Palmpay has a palm coins feature that allows you to get rewards for performing different activities on the platform. For instance, the tasks include: Adding a bank card to your account, referring people, and so on.

Kuda unfortunately do not give incentives to their customers. They do not give daily or referral cashback.

READ THIS: How To Create Kuda Bank Account And Make Money In Nigeria

Kuda vs Palmpay: Banking Channels

In terms of the banking channels, we would be strictly looking at the methods by which one can transact deals with other people. For example, almost all banks issue ATM cards (debit cards) and USSD.

Kuda Microfinance Bank is a bank that makes sure its customers are served right. Yes, whenever you want to make transactions seamless you can simply order for their debit card. With their debit card, you can withdraw from any ATM or even POS terminal. That would save you the stress of transferring to other Banks to withdraw. Also, they possess a USSD code for transferring funds into another account.

The case is also the same with Palmpay. Palmpay has made things easier for its clients in recent years. They have made it possible for customers to receive debit cards. Also, just like Kuda Bank, Palmpay has a USSD code for transactions. You can easily make transfers to other banks free of charge!

Kuda vs Palmpay: Savings

In terms of savings, Kuda is reputable for this. They assist their customers with their consent to save a percentage of their money for a particular period. This would assist the customer meet financial obligations or emergencies when due.

As for Palmpay, this feature isn’t in their services. Palmpay allows customers to receive money for their airtime. For example, if you over-recharge your line with 1000 naira, with Palmpay you can easily convert that airtime to cash.


What is the highest amount Palmpay can receive?

You can receive a transfer of 200,000 naira at a go. But the total deposit on Palmpay should not be more than 500,000 naira.

What is the disadvantage of Palmpay?

According to a customer, Palmpay has one of the worst customer services. “If money is debited from the account, you should forget about it” declares a customer.

Is Palmpay approved by the government?

Palmpay is fully licensed by the CBN. It is approved under the Mobile Money Operator category of the app.

Can I trust Kuda?

It is founded in Lagos. It was under the rule of the NDIC. Outstanding amounts in your wallet of up to 200,000 naira would be protected in case of bankruptcy or liquidation.

Can I have two Palmpay accounts?

If you own a Palmpay account, play fair. If Palmpay detects that you own multiple accounts, all the accounts would be frozen.


Observing the continuous support Nigerians have given both platforms, many consider it not reasonable to argue on the topic Kuda vs Palmpay: Which is the best? Contrary to that opinion, a good number of people also find it fun to find fault in these two organizations. The ball is left in your court. This article has discussed several similarities and disparities between these two microfinance banks. What’s your take? We’re eager to hear from you!

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