Opay And Palmpay Beef up Security on Platforms With The Introduction of New Updates

Nigerian fintech startups Opay and Palmpay have intensified security on their platform, with the introduction of new updates.

The startups are reported to have implemented these changes, following reports on fraud alerts, and directives from the Central Bank of Nigeria to strengthen the Know Your Customers (KYC) procedures.

For Opay, the digital payment platform has implemented these changes, after a viral video of customers displaying how users can open an account using other people’s bank account numbers on the platform.

This prompted the startup to implement changes in the identification method of securing bank accounts during the onboarding process. 

The company said the process was included because a BVN backs every account. 

It wrote in a statement, 

“We introduced the bank account verification to help users authenticate BVN more conveniently (for example, where a user forgets their BVN). For biometric validation, our system will verify the face of the user with that on the BVN database, or double-check with the user’s real name. 

“This is combined with an OTP process which then certifies the authenticity of the user. This is more so, consistent with the CBN’s latest guidelines mandating BVN/NIN verification for Tier 1 users.”

Palmpay also announces new upgrades

Similarly, PalmPay launched a new security in-app version that mandates all new users to input their BVN or NIN numbers before a wallet can be created. The company said the product launch is in response to the Central Bank of Nigeria’s recent directive on promoting financial system stability by strengthening the Know Your Customer (KYC) procedure for customers. 

Speaking on the upgrade, the Managing Director of PalmPay, Chika Nwosu said the changes are for existing and new users having BVN or NIN. 

In his words,

“We are committed to ensuring compliance and fostering a secure financial ecosystem. “As a forward-thinking fintech platform, we believe that this measure will enhance the overall security of users’ wallets and the protection of users’ data while providing seamless financial services. 

“Through various in-app activities, we have always encouraged our users to link their wallets with their BVN or NIN. We are fully aligned to drive the new Directive. Operating under the Mobile Money Operator license, PalmPay’s wallet opening process requires new users to provide their NIN or BVN number”.

He therefore encouraged users to update their KYC information on the app to ensure compliance with the Directive.