Kuda Vs Palmpay: Which Is Better?

Brief Info About Kuda And Palmpay

Kuda and Palmpay are both digital-only banks in Nigeria that offer various financial services through their mobile applications. While they have some similarities, there are also notable differences between the two platforms.

Here is a comparison:

Kuda

Kuda Bank is an online banking company that focuses more on traditional banking services such as savings and lending.

They offer features like investment and savings options, debit cards, free transfers, and cross-border payments.

Kuda also provides an Overdraft facility, allowing users to access additional funds when needed.

Palmpay

Palmpay, on the other hand, is an easy regular savings and fixed savings app with great functionalities and features.

As a Palmpay user, I save, exchange airtime for cash and often earn cashback rewards and other incentives offered by the app to attract customers.

Also, it is a licensed institution making it a reliable source.

Kuda vs palmpay: statistics

Kuda and Palmpay are both digital platforms that offer financial services in Nigeria and here is their statistics so far:

Kuda

Kuda Bank focuses on traditional banking services such as savings and lending.

They offer features like investment and savings options, debit cards, free transfers, and cross-border payments.

Kuda also provides an Overdraft facility, allowing users to access additional funds when needed.

According to businessday.ng, In November 2020, Kuda raised $10 million from institutional investors in a seed round led by Target Global, while in February 2021, it processed over $2bn transactions per month and passed one million android downloads.

Also, in March 2021, Kuda piloted overdrafts with plans to extend the credit service to all its active customers, announcing “a $25 million Series A funding round led by Valar Ventures.

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It spiked up in August 2021 as Kuda raised $55 million for global expansion in a Series B round co-led by Valar Ventures and Target Global.

The same year in November 2021, Kuda launched Visa cards in Nigeria; passed the two millionth customer milestone in December 2021, and in February 2021, Kuda passed 1.5 million iOS downloads.

In the month of March 2022, Kuda passed the three-million-customer milestone; ramped up to four millionth customer base in July 2022, and further in November 2022, Kuda launched in the UK, while capping with the six-million-customer milestone in June 2023.

Palmpay

According to the prnewswire.com, PalmPay offers money transfers, bill payments, credit services and savings on its app and via its network of 500,000 mobile money agents.

Since launching in Nigeria in 2019 under a Mobile Money Operator license, the platform has grown to 25 million users. Over 300,000 merchants are part of its cashless payment ecosystem.

The company has raised nothing less than $140m USD.

Kuda Vs Palmpay: features and functionalities

Kuda and Palmpay are two digital banking platforms in Nigeria that offer a variety of features and functionalities. Below is a comparison between the Kuda and Palmpay features:

Kuda:

Free Banking: Kuda offers zero maintenance fees, transfer fees, making it a cost-effective option for users.

However, while the Kuda card is usually free, there have been certain changes and getting a kuda bank card will cost N1,500 only.

Spending Insights: Kuda provides spending insights and personalized budgeting features to help users track their expenses and manage their finances effectively.

Automatic Savings: Kuda’s “AutoSave” feature allows users to set up automatic savings, helping them save money effortlessly.

Overdraft Facility: Kuda offers an overdraft facility that allows you to access extra funds when you have insufficient balance in your account.

Bill Payments: Kuda allows users to pay bills directly from their account, making it convenient to manage utility payments.

Palmpay

Digital Wallet: Palmpay is a comprehensive digital wallet that enables users to send money, make payments, and store funds securely.

Cashback Rewards: Palmpay offers cashback rewards to users for transactions made through the platform, providing additional benefits for their spending.

Investment Opportunities: Palmpay provides investment options, allowing users to explore investment opportunities and potentially grow their wealth.

Point of Sale (POS) Integration: Palmpay integrates with point of sale systems, allowing businesses to accept digital payments seamlessly.

Kuda Vs Palmpay: Loan

Both Kuda and Palmpay are digital banking platforms that offer loan services to their users. However, I’ve made a comparison between the loan offered by the two companies:

Kuda:

Personal Loans: Kuda provides personal loans to its users.

The loan amount can range from N1,000 to N200,000, depending on the user’s eligibility and creditworthiness

Instant Approval: Another thing is instant approval. Kuda offers instant loan approvals within minutes.

You can apply for a loan through the Kuda app and receive the funds directly into your Kuda account straightaway.

Flexible Repayment: Kuda allows users to repay their loans in installments over a period of up to 12 months.

The app provides a repayment schedule, and users can make repayments through the app as well.

Competitive Interest Rates: Similarly to other financial apps, Kuda also offers competitive interest rates on its loans, making them affordable for users.

Palmpay:

Palmpay Credit: Palmpay offers a credit feature that allows users to access instant loans directly from the Palmpay app. Users can apply for loans ranging from N2,000 to N150,000.

Quick Disbursement: Once approved, the loan amount is disbursed directly into the user’s Palmpay wallet within minutes.

Flexible Repayment: Palmpay provides flexible repayment options, allowing users to repay their loans in installments over a period of up to 90 days depending on the amount borrowed.

Credit Score Building: Palmpay considers the user’s credit history and repayment behavior to build their credit score, which can lead to increased loan limits and better loan terms in the future.

Also, another thing you must consider is that before you can access Palmpay credit, you must have been actively using the app.

If not, your loan request will be turned down oftentimes.

Kuda Vs Palmpay: Fees And Charges

Both Kuda and palmpay charge certain fee on transsctions, below is a guide:

Kuda:

Trading Fee: There is a 2% commission on all trades made on the Kuda app.

ATM Withdrawal Fee: For the first three withdrawals in a month, there are no charges.

After that, ATMs will charge you 35 naira per withdrawal for the rest of that month.

Transfer to Other Banks: Kuda customers get 25 free transfers to other banks every month.

Extra transfers to other banks cost N10 each.

Deposit Fee: Kuda account holders can deposit money for free.

Palmpay:

POS Transaction Fee: There is a 0.5% withdrawal fee for Android and conventional Palmpay point-of-sale devices.

This means you will be charged N5 on every N100 withdrawal.

PalmPay POS Caution Fee: The caution fee for both types of Palmpay POS ranges from 20,000 naira to N60,000.

Remember Palmpay provides traditional and Android POS.

Kuda Vs Palmpay: Investment

Both Kuda and Palmpay offer users an investment options, below are brief details about the investment:

Kuda:

With Kuda, you can invest in US stocks in Nigeria.

It’s easy to add USD to your account and buy fractional shares to invest in your future.

Kuda offers a range of investment options, including investing in US stocks. More investment options may be available in the future.

Palmpay:

Palmpay on the other hand empowers individuals and businesses with payment solutions, high-yield investment opportunities, and easy-to-use tools for financial management.

Palmpay offers a savings feature with up to 20% annual percentage rate (APR) however this interest percentage is for individuals who choose a fixed-term savings plan.

This product encourages wise financial decisions and helps individuals make their money work for them.

Kuda Vs Palmpay: Security

Kuda:

Kuda app claims to protect your identity, account, and money using biometrics, secure PINs, 3DS card payments, transaction alerts, and more.

They have an Information Security Policy in place to ensure the availability, integrity, and confidentiality of information, which is essential in building and maintaining their competitive edge, cash flow, profitability, and legal compliance.

It uses encrypted accounts, fraud prevention measures, strong passwords, PINs, and biometrics (such as fingerprint and Face ID) for added security.

They also offer a Private Mode feature and insurance to further protect your money.

Palmpay:

Palmpay offers a range of security features, including biometric authentication, to ensure that users’ transactions are safe and secure.

They maintain appropriate administrative, technical, and physical safeguards such as firewalls, data encryption, and competent security guards.

Palmpay intensifies security efforts with workshops, device management, and facial recognition to enhance digital payment security amidst rising fraud cases in Nigeria.

They have anti-fraud and KYC systems in place to protect users from fraud and unauthorized use.

Kuda Vs Palmpay: Users feedbacks and complaints

Kuda:

Based on the many user reviews on the Google Play store, Apple app store and other platforms like trustpilot, users have praised Kuda for its focus on traditional banking services like saving and lending.

I also see cases where users mentioned that Kuda offers convenience and affordability with its cash back feature.

Kuda has been rated as the best all-around digital bank in Nigeria by experts at Monito, with an unrivaled fee schedule of zero hidden fees.

Palmpay:

With Palmpay, I’ve also seen many users’ comments and reviews regarding how Palmpay is very easy and fast to use, with no charges on transfers.

Palmpay offers high-yield investment opportunities and easy-to-use tools for financial management.

As a Palmpay user, one of the advantages I’ve seen and benefited from is its savings feature, where users enjoy offers up to 20% annual percentage rate (APR).

Kuda Vs Palmpay: Reasons to choose kuda or palmpay

Reasons to choose Kuda:

Kuda, the money app for Africans, offers zero maintenance fees, free transfers, and automatic savings & investments.
Kuda’s signup process is seamless and easy, providing users with a hassle-free experience.
Your money is safe with Kuda, as they secure all accounts with high-security encryption used by regular banks.
Kuda offers a range of features, including account maintenance and card maintenance fee waivers, which can save you money in the long run.

Reasons to choose Palmpay:

Palmpay POS terminal may be a great choice for your business, offering factors such as pricing, transaction fees, and hardware quality.
Palmpay is easy to use, making it convenient for individuals and businesses alike.
Palmpay enables seamless money transfers, bill payments, and offers a secure space for savings.
Palmpay offers a high-yield investment opportunity and easy-to-use tools for financial management.

Kuda pros and cons vs Palmpay pros and cons

Kuda Pros (Advantages):

Kuda bank is safe, regulated, and licensed by the CBN as a microfinance fintech.

Kuda offers innovative features like an innovative cheque feature, savings feature, and competitively low banking fees.

Users have praised Kuda for its focus on traditional banking services like saving and lending.

As mentioned earlier, Kuda has been rated as the best all-around digital bank in Nigeria by experts at Monito, with an unrivaled fee schedule of zero hidden fees.

Kuda Cons:

One of the striking disadvantages of Kuda bank is the account balance not showing.

Another disadvantage is failed transactions.

Additionally, Kuda bank users often experience account numbers not showing.

Some users have mentioned that some of Kuda’s services can be improved.

Palmpay Pros (Advantages):

Palmpay is easy to use, making it convenient for individuals and businesses alike.

Palmpay offers high-yield investment opportunities and easy-to-use tools for financial management when compared to Kuda bank.

I’ve also seen instances where users mentioned that Palmpay is very easy and fast to use, with no charges on the first 3 transfers everyday.

Palmpay offers a secure space for savings and has a savings feature that offers up to 20% annual percentage rate (APR) for individuals who choose a fixed-term savings plan.

Palmpay Cons:

Some users have mentioned concerns about scams and fraudulent activities associated with Palmpay.

Palmpay invitation bonus not paid as expected which many users have expressed their dissatisfaction with.

Kuda Vs Palmpay: Which is better?

Now when it comes to the question “Kuda vs Palmpay which is better, I hope you don’t expect me to state specifically which one is the best. No, it’s not done.

Determining which is better between Kuda and Palmpay will depend on what you prefer, what you need etc.

If you’re yet to determine which one to choose, I’ll encourage you to read again.

This time, you need to carefully go through the article before finally coming up with a decision on which one to choose.

That said, It may be helpful to try out both platforms by signing up for their services, exploring their features, and assessing their usability before making a decision.

FAQs On Kuda Vs Palmpay: Which Is Better?

Here are some helpful frequently asked questions with answers:

Is PalmPay better than Kuda bank?

Determining whether PalmPay is better than Kuda bank depends on individual preferences and needs.

Both platforms offer different features and services, so it’s important to assess which aligns better with your financial requirements.

Consider factors such as the specific features, ease of use, fees, security measures, and user feedback to make an informed decision.

What banks are better than Kuda?

Determining which banks are better than Kuda depends on individual preferences and requirements.

There are several traditional banks and digital banking platforms available, each with its own strengths and weaknesses.

It’s important for you to consider factors such as the range of services offered, fees, customer support, branch accessibility, digital banking features, and user feedback when comparing different banks.

Researching and comparing multiple banks can help you find one that aligns with your specific needs and preferences.