PalmPay users in Nigeria will now notice a ₦50 stamp duty deduction on transfers of ₦10,000 and above sent to other beneficiaries on the platform. The charge follows a federal tax directive and applies across all eligible electronic transfers made through PalmPay.
The fintech company explained that the deduction is not a new service fee but a statutory charge required under Nigeria’s current tax framework. It applies only when a user sends ₦10,000 or more to another person and is deducted from the sender’s account, not the recipient’s.
According to PalmPay, the stamp duty is charged per qualifying transfer and does not apply to movements between accounts owned by the same user, as long as the account names and BVN or NIN details match. This means users transferring funds between their own PalmPay wallets will not be affected.
PalmPay also clarified that it does not benefit financially from the ₦50 deduction. The amount is remitted directly to the Federal Government through the Federal Inland Revenue Service, in line with regulatory requirements. The company stated that the stamp duty replaces the former Electronic Money Transfer Levy and is now the applicable charge for qualifying digital transfers.
Despite the introduction of the stamp duty, PalmPay said it will continue to offer free transfers to bank accounts, maintaining its focus on affordable digital financial services for everyday users, small business owners, and mobile money customers across Nigeria.
Users are advised to be mindful of the ₦10,000 threshold when initiating transfers, as the charge is automatically applied once the amount meets or exceeds the limit.
NgEmpower.com will continue to provide verified updates on digital banking policies, fintech charges, and financial regulations affecting users in Nigeria.
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