Kuda vs. PalmPay: Which is Better?

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Are you curious to know between Kuda vs. PalmPay: Which is better? Then read this guide till the end.

The rise of financial technology has led to the emergence of various payment platforms in Nigeria.

Kuda and PalmPay are two popular digital banking services that have gained significant popularity among Nigerians over the years.

Both Kuda and PalmPay offer different services that are tailored to meet the varying needs of their customers.

However, when it comes to choosing the best between Kuda vs. PalmPay.

We will discover that in this article.

This article will unravel everything you need to know about Kuda and PalmPay to determine which is better.

Overview of Kuda

Kuda is a mobile-only bank that was founded by Babs Ogundeyi and Musty Mustapha in 2019.

It is a digital-only bank that provides users with banking services solely on a mobile application.

The bank offers a range of services, including savings accounts, loans, and bill payments.

It also offers the service of cash transfers and investment options.

Kuda’s main merit is that it’s entirely digital, clarifying that customers can access all banking functions on their mobile phones.

Overview of PalmPay

PalmPay is a mobile payment platform that was established in 2018.

It was launched in Nigeria in 2019 and has become one of the most used digital finance apps appreciated.

The platform allows customers to make payments, transfer funds, and buy airtime.

PalmPay also offers a range of deals and promotions to its users.

The platform is a product of Transsion Holdings.

They are the parent company of popular smartphone brands like TECNO, Infinix, and itel.

PalmPay users can link their bank accounts to the platform, as well as their debit and credit cards.

This allows them to enjoy easy access to various financial services from the comfort of their smartphones.

Choosing Between Kuda and PalmPay

There is a lot to look at when deciding between Kuda vs. PalmPay: Which is better?

Here are but a few to make you conveniently choose which suits your budget, taste, and satisfaction.

1. Service Offered

Both Kuda and PalmPay offer different services that are designed to meet the needs of their customers.

Kuda provides a range of services, such as savings accounts, loans, and bill payments.

On the other hand, PalmPay focuses on mobile payments, fund transfers, and airtime purchases.

PalmPay also allows you to pay utility bills like TV subscriptions and electricity bills, and you can even enjoy betting with your money.

Furthermore, there is an opportunity for cash-back rewards on transactions where you are given discounts.

For this aspect, PalmPay has more say on the beam balance when we talk about services rendered.

2. Ease of Use

One of the most important factors when choosing a payment service is how easy it is to use.

Kuda’s mobile app is user-friendly and straightforward to navigate.

Customers can easily access all banking functions from their mobile phones, making transactions more accessible. PalmPay’s mobile app is also easy to use and provides a secure platform for making transactions.

This feature on both apps allows you to enjoy convenient digital banking since you don’t have to go to different banks in order to reimburse services and goods rendered to you.

3. Airtime to cash

The PalmPay app gives a rare opportunity feature of airtime to cash on their financial platform.

In the case where you recharge a huge amount of credit airtime, you can just sell it into cash on the PalmPay app.

That way, you don’t have to worry about wastage or loss of your money because you get your money instantly.

This feature is only available on the PalmPay mobile app as Kuda like this feature.

4. Costs

Another critical factor to consider is the cost of using these services.

Kuda does not charge maintenance or account opening fees, and customers can withdraw cash for free up to three times a month.

PalmPay also does not charge account opening or maintenance fees.

However, it charges a 1% fee for transferring funds from a Palmpay wallet to a bank account.

5. Customer Support

Both Kuda and Palmpay offer robust customer support services.

Both platforms offer excellent customer service with quick responses.

Kuda has a dedicated customer support team that can be reached via email or phone number.

Palmpay also offers customer support through phone and email.

6. Security features

Security is a significant concern when it comes to digital banking services.

Both PalmPay and Kuda utilize advanced security measures to protect their users’ financial information.

You can be sure your financial pieces of information are safe and are not accessible by a third party.

PalmPay uses SSL encryption and two-factor authentication to secure user data.

Moreso, Kuda utilizes biometric authentication and PIN verification to ensure transaction security.

The only thing users should be careful of is they should in any way not share their PINs or passwords with anyone.

7. User Experience

In terms of user experience, both Palmpay and Kuda offer their users an intuitive and straightforward interface.

They both have a platform that is simple to navigate.

Palmpay, being a payment platform, puts more emphasis on payment transactions.

On the other hand, Kuda focuses on providing a full range of traditional banking services which can be accessed on mobile.

8. Transaction Limits

Palmpay allows users to transact up to N100,000 per transaction, while Kuda’s transaction limit is up to N500,000 per transaction.

Furthermore, Kuda has a higher daily transaction limit of N1,000,000 compared to Palmpay’s N300,000 daily transaction limit.

So when discussing the transaction limits in both platforms, kuda takes the lead in the beam balance.

9. Locations of Operations

Kuda functions and has two places of operation which are Nigeria and the UK.

Although Kuda functions in the UK, it only operates in Naira.

To receive money from abroad, you would need to open a US dollar bank account, also known as a domiciliary account.

This account will be opened with a traditional Nigerian bank, and then you will get access to receiving money in dollars.

10. Physical Debit Card

Kuda gives the opportunity of a debit card to users to withdraw cash from the ATM of every bank.

The card can be requested on the mobile app, and it will be delivered to your doorstep at zero fee.

However, PalmPay doesn’t have a debit card.

For this feature, Kuda takes the lead on the beam balance.

11. USSD

PalmPay and Kuda Digital Bank do not have their own dedicated USSD code.

However, both have access to other banking systems which allow you to transact and save money in their account from other banks.

Similarities Between Kuda and PalmPay

There are a few similarities between Kuda and PalmPay, which comprises:

Both PalmPay and Kuda Bank provide free virtual naira cards for financial funding.
Both platforms allow you to purchase airtime and data for your phone with ease.
Both platforms provide a safe Banking experience for users.
You get access to receive free SMS alerts for debit and credit in your accounts.
All transactions can be conducted online with the aid of stable internet access without the need to visit a bank.

Why You Should Choose Kuda over PalmPay

You get 15 percent in interest for using their annual savings program, which is a reliable investment platform.

On the other hand, there is no room for investment in PalmPay

You get to Enjoy 0% transaction fees on all internal and external bank transfers, unlike PalmPay, which has High fees attached to some transactions.
Access to a free debit card for easy withdrawal from an ATM while such doesn’t exist for PalmPay.

Why You Should Choose PalmPay over Kuda

You can borrow loans from PalmPay at any time you wish.

But for Kuda, you have to use their service for a period of time to have access to loans.

You get three free transfers on PalmPay every day which makes 90 Free transfers per month.

On the other hand, Kuda provides a total of just 25 free transfers per month.

You get an Issuance of a POS service if you wish to partner with the industry however Kuda doesn’t have a POS service feature.
You have an option to convert unused airtime into cash in the PalmPay app but you can’t do this in Kuda.
Bills can be split with other Palmpay users allowing room for third-party partnerships.

However, Kuda is a one-man’s digital account where you can’t share your bills with others.

There is a feature for cashback, bonus options, and discounts available on PalmPay but Kuda doesn’t.
There is no room for physical cash deposit options on Kuda, you only have the opportunity of doing transfers from your bank account.

Regardless, you can deposit money directly into your PalmPay account with the aid of a POS agent and also transfer.

The PalmPay platform has 3 physical branch locations where users can visit in person and access services, unlike Kuda which has no such thing as a headquarter.

Final Note on Kuda vs. PalmPay: Which is better?

It’s no surprise that Kuda and PalmPay are the most used digital platforms in Nigeria.

Hence the need to differentiate between Kuda vs. PalmPay: Which is better?.

Determining which is best between both platforms depends strictly on an individual’s preference and usage.

Kuda is an economical option with an easy account opening process looking more like a real bank.

PalmPay on the other hand being a digital banking system offers a wide selection of bill payment options and rewards.

Finally, haven’t realized that the best app for you will depend on your personal financial needs and preferences, this article on Kuda vs. PalmPay: Which is better? is the best guide for your decision-making processes.

Frequently Asked Questions on Kuda vs. PalmPay: Which is better?

Is Kuda or PalmPay available in other countries apart from Nigeria?

Presently, Kuda and PalmPay are only available for users in Nigeria.

However, the companies are planning on extending their services to other African countries in the future.

Is there an app much better than Kuda and PalmPay?

It is difficult to determine which app is better than Kuda and Palmpay.

This is because making a decision depends on the financial needs and preferences of each user.

While Palmpay provides services, such as cashback rewards and a variety of multi-bill-paying options, there are other mobile banking apps that better meet the needs of some users.

Some popular mobile banking applications in Nigeria include OPay, RenMoney, Nexi Payments, PayPay, and BKash.

Can I save money on either Kuda or PalmPay?

You can save money on PalmPay and Kuda so far you have a legitimate accounting platform.

How much is the cost of a Kuda ATM card?

No, you won’t be charged any fee for the Kuda ATM debit card.

All you have to do is request your card through your account and you will receive it at your doorstep.

However, there is a rule which is, you must have a minimum balance of 1,000 naira in your account before you can inquire for a card.

Consider your money safe as it won’t be withdrawn.

Can I send and receive money from other banks using Kuda or PalmPay?

Yes, you can send and receive money from other banks using either Kuda or PalmPay.

Which platform offers more services between PalmPay and Kuda?

Both platforms offer almost the same services with little differences.

However, PalmPay has more features than Kuda in the aspect of physical service, cashback, rewards, and payment of other utility bills.