Kuda vs PalmPay: Which is Better?

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Kuda vs PalmPay

The uprising of digital banking which has continued to increase in number has eased the lives of most Nigerians.

Two such banks are Kuda and PalmPay. Hence Kuda vs PalmPay: which is better?

These two fintech companies are one of the widely used digital banks by Nigerians. However, you all know we want the best.

Since Kuda and PalmPay are well-known digital fintech industries that have gained the attention of most people in the financial market. Hence, the need to compare and contrast these two banks is very important.

Both of them offer a wide range of services to ease and improve your financial experiences. Thus, in answering your question, I will look into the features, advantages, and possible limitations of both Kuda and PalmPay.

Doing this will ultimately help you to make an informed decision about which platform is better for your needs and preferences.

About Kuda Bank

Kuda also known as the money app of Africa is a fintech company operating in Nigeria and the UK. The bank was founded by Babs Ogundeyi and Musty Mustapha in 2019. The main aim of the bank is to get rid of all the excessive fees the conventional banks charge you.

With a Kuda account, you can make free transfers, enjoy cashless payment options and earn fat interest on your savings.

The good news is that your fund is safe with Kuda Bank because it is fully licensed by the Central Bank of Nigeria. Also, their deposit is insured by the NDIC.

Furthermore, Kuda is known to include tools for tracking your spending habits, which helps you to be conscious of your spending. Hence, enhancing you to save more.

Similarly, Kuda is valued at $500 million and has raised over $90 million from investors. Some of which are Target Global and Valar Ventures.

Kuda Bank ensures their customers get 25 free transfers to other banks every month. However, extra transfers to other banks cost a token of ₦10 each.

Ultimately, Kuda account holders can deposit money in over 10,000 branches across Nigeria for free.

About PalmPay

PalmPay is a digital financial platform launched in Nigeria and Ghana in 2019. The platform is legit because they are licensed to operate as MMO by the central bank of Nigeria. Likewise, their deposit is insured by NDIC. Thus, you do not have to be afraid.

They aim to redefine the payments experience for you and your business in Africa. PalmPay makes financial services more accessible and affordable to all its customers.

With just your smartphone you can perform all your transactions on your palm. Furthermore, to ease your banking activities an online and offline payments ecosystem has been built.

Over the years it has brought together the best digital products from across the marketplace.

Ultimately, PalmPay empowers consumers with a bank in their pocket.

Unique Features of Kuda vs PalmPay

  • Available Currencies and Cross-Border Transactions Kuda vs PalmPay

Both Kuda and PalmPay have outstanding features that support a variety of currencies from the US dollar to the naira. Hence, this makes them a great choice to consider if you need to make international payments.

However, if cross-border payments are the priority for you and your business, then you should consider Kuda.

Kuda offers more currencies than Palmpay and also has more options for cross-border payments.

With a Kuda account, you can make affordable one-off payments. Besides, you can schedule your transfers on the app.

Similarly, you can make automated payments which will help you save up to 90% on currency exchange fees.

PalmPay also offers this service at a lower transfer fee.

  • Customer Service Kuda vs PalmPay

As you know, customer service is an important aspect of any business, especially online business platforms.

Fortunately, both Kuda and PalmPay offer great customer service to their respective customers.

Both digital platforms have a customer service unit available 24/7.

You can reach either of them through email, phone, social media handles, and app chats.

Likewise, both banks provide a library of resources so you can troubleshoot problems on your own. However, Kuda Bank offers free call center support. With this, you can chat with a real person whenever you need help. PalmPay on the other hand does not offer call center support.

  • PoS Agents: Kuda vs PalmPay

In Nigeria, hardly will you enter a street without sighting 2 to 3 PoS terminals. This terminal has helped us over the years to reduce the stress we went through in the banking hall.

Thanks to PalmPay for this great action of having PoS agents. Since PalmPay is committed to bringing your fund close to you it has a successful agent payment network. These PoS agents are middlemen between you and the company. Hence, making payments easy for customers in their locality.

However, Kuda Bank does not have any PoS terminals or agents.

  • Debit Card Kuda vs PalmPay

A debit card is a bank card that can be used for payment. You can also use it to withdraw or deposit funds.

Kuda Bank always issues debit cards to its customers. The main motive behind this is to make life easy for them. You can use the card at any ATM or any PoS terminal.

However, you have to request the card on the Kuda mobile app and it will be delivered to your doorstep free of charge. PalmPay on the other hand does not have a debit card.

  • Savings and Investment: Kuda vs PalmPay

Kuda Bank enables you to save as you spend. The save feature can either allows you to;

  • Save as you want: here you can decide to save wherever you feel like. Also, you can withdraw your savings anytime.
  • Save frequently, you can choose to save daily, weekly, or monthly towards a particular goal. Here you will acquire interest as you save.
  • Spend and save: just activate the spend and save option and set a percentage you will like to save anytime you spend. Then Kuda will help you save the preset percentage of any money you spend directly from your account. That is, a certain specified amount of money will be saved for you once you spend a certain amount.
  • Save a fixed amount: all you need to do here is to save a specific amount for a fixed time. Then Kuda will help you lock that pocket till the time you intend to collect your money. This feature enables you to acquire 7.5% interest on your savings. Note, that you can also decide to collect your money anytime you feel like it. 

Ultimately, you will love this feature as it can help you in cultivating the art of saving.

PalmPay on the other hand does not have a savings feature.

  • Free Transfer: Kuda vs PalmPay

One of the features the fintech industry uses in attracting customers is the free transfer feature. You know what we all pass through in the hands of those conventional banks.

Kuda and PalmPay are also not left out. Both of them offer free transfers for customers to make use of their platforms. They do this in order to attract customers.

Kuda Bank offers you 25 free transfers to other banks in a month. But, PalmPay offers you 3 transfers in a day. 

Ultimately, both banks will then charge you a token of #10 per transfer once you have exhausted your free transfers.

  • Cashbacks and Discounts: Kuda vs PalmPay

PalmPay offers you cash back anytime you buy airtime or data on the app.

Also, they have a palm coin feature that rewards you with coins when you perform different tasks on the application. Some of these tasks are referring someone, adding a bank card to your account, and so on.

However, Kuda Bank does not offer any form of cashback.

  • Recharge2Cash

Do you know that feeling when you mistakenly recharge your line while you are trying to make a transfer of funds? Do not panic, with the PalmPay recharge2cash, you can convert airtime on your MTN line back to cash.

Kuda Bank does not have such features.

  • Referral Cashback Kuda vs PalmPay

PalmPay offers you cashback on every referral you make to the platform. You will be rewarded a sum of ₦500 cashback on every customer you introduced. Aside from this, there is a PalmForce feature that allows you to earn real money on all your referrals.

Kuda Bank, regardless, does not offer cashback on referring customers to its platform.

Final Thought on Kuda vs PalmPay: which is better?

From this blog post, you can conclude that both Kuda and PalmPay are reliable digital payment platforms. They both help you have access to your money without stress. Regardless, Kuda Bank has an edge over PalmPay in terms of investment and savings, debit cards, free transfers, cross-border payments, and so on. 

Similarly, PalmPay is your sure plug if you want to; become a PoS merchant, convert your recharge card back to cash, and get bonuses and cashback among others.

Ultimately, your choice will depend on the features you need in a bank.

Frequently Asked Questions On Kuda Vs PalmPay: Which is Better?

Below are some frequently asked questions on Kuda vs PalmPay.

Is it safe to use Kuda or PalmPay for Transactions?

Yes, you can use both Kuda and PalmPay with your eyes closed because they are safe to use. Both Kuda and PalmPay utilize encrypted data for all transactions.

Besides, both banks are licensed to operate by the central bank of Nigeria (CBN). Also, their deposits are insured by the Nigeria Deposit Insurance Corporation (NDIC).

Will I be charged if I use Kuda or PalmPay?

Kuda does charge service fees for using its platform after your monthly 25 free transfer. But for PalmPay you will be charged a token of #10 after the first three transactions you perform in a day.

Are there any limits on how much I can transfer in a day on Kuda and PalmPay?

Yes, there are limits to how much you can transfer per day. However, you can increase your limits if you upgrade your account. All you need to do is to provide the bank with your BVN and a valid ID card. Then all restrictions will be removed.

Kuda vs PalmPay: which is better?

Kuda and PalmPay are both digital platforms that help you access your money without stress. However, Kuda Bank has an edge over PalmPay in terms of investment and savings, debit cards, free transfers, cross-border payments, and so on. Also, PalmPay is your sure plug if you want to; become a PoS merchant, convert your recharge card back to cash, and collect bonuses and cashback among others.

Can I use Kuda or PalmPay Abroad?

No, you can’t. Kuda and Palmpay do not allow international transactions or transfers. However, you can use Kuda in the UK alone.

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