PalmPay, a digital banking platform in Africa, has announced new strategic partnerships with top-tier insurance providers in a move aimed at addressing Nigeria’s persistently low insurance coverage.

The initiative introduces a range of affordable insurance products directly within the PalmPay app, targeting the everyday Nigerian user.

This rollout is part of the company’s broader commitment to deepening financial inclusion and improving access to essential financial services, the fintech said in a statement on Tuesday.

According to recent estimates, only about 8.9 per cent of Nigerians are covered by any form of health insurance, making the country one of the least insured populations in Africa. Barriers such as affordability, lack of awareness, and low trust in the insurance system have limited uptake, particularly among low-income and underserved communities.

Head of Wealth Product at PalmPay, Habib Kowontan, said the new insurance offering was designed to overcome these challenges by simplifying the process of buying and managing insurance policies.

“Insurance is often perceived as complex or inaccessible, especially among underserved communities,” Kowontan said.

“Through these partnerships, we aim to break down those barriers by offering simple, reliable and affordable insurance options that are easily accessible within the PalmPay app.”

The new feature allows users to purchase a range of coverage types, from health and device protection to life insurance, directly from their mobile devices, without the need for intermediaries or complex paperwork.

With over 35 million users across Nigeria, PalmPay is positioning itself as more than just a payments platform. The integration of insurance expands its growing suite of services, which includes transfers, bill payments, high-interest savings, and debit card issuance.

Managing Director of PalmPay, Chika Nwosu, said the insurance feature underscores the company’s mission to become a trusted digital financial partner.

“Our goal at PalmPay is to remove barriers and make essential services easily accessible to everyone,” Nwosu said.

“Through these strategic partnerships, we’re expanding our services to be more inclusive and empowering our users with products that will positively impact their lives and finances.”

PalmPay said the addition of insurance products represents a key milestone in its evolution as a digital bank, especially in a country where informal workers, small business owners, and rural dwellers are often excluded from traditional insurance frameworks.

By embedding insurance services within its app, PalmPay aims to drive adoption through convenience, affordability, and trust, reinforcing its role as a platform that supports both financial empowerment and everyday well-being.