A customer of popular financial technology company, PAYDAY, who prefers to remain anonymous has fallen victim to financial fraud perpetrated by the ap
A customer of popular financial technology company, PAYDAY, who prefers to remain anonymous has fallen victim to financial fraud perpetrated by the app against him.
PAYDAY is a neobank that allows customers to make swift borderless payment services for individuals most especially Africans, thereby connecting its users with vast opportunities around the world in split seconds.
The victim revealed that it has been difficult trying to make withdrawals with.
When the victim tried to withdraw $100, the victim was told that at least the sum of $1 need to be left on the withdrawal card before withdrawals could be made, this is despite having the sum of $1168 on the said card as balance.
When the victim made a complaint to the company using their customer care service platform provided by the application, with the hope of a swift response and solutions the challenge, the victim was assured that the issue would be resolved within the next 24 to 48 hours.
Upon further inquiry after the expiration of the 48 hours, which the bank promised to resolve the issue, the victim was told that card withdrawal, a major means of withdrawal with the bank, was suspended due to technical issues.
Soon, the victim noted that the account used for transaction got emptied despite the bank’s claim of suspending card withdrawals.
This was surprising because the victims said no one had access to either phone or account of the victim, it therefore means that the app was responsible for the unauthorised withdrawal without consent.
In March 2023, Payday which has enjoyed a run of decent publicity in the last few months, making the most of being named one of Starlink’s payment partners for the Nigerian market was looking to raise $1.5 million to grow its product and engineering team, expand its operations and get the required licences for those expansions.
While some admitted that the fintech company may be going through a lot of issues technically, others alleged that it cannot meet up to its promises to its customers.
The company has also been marketing its virtual cards, which allows people to make payments for foreign transactions.
Currently, many Nigerian banks have a $20 monthly limit on foreign transactions for naira cards. Many bank cards also don’t work for simple things like Spotify subscription payments, opening up a market for virtual cards that make these possible. But virtual card operations can be tricky, and risks abound. Fraud and dealing with chargebacks can make it more trouble than its worth, but it remain an easy channel for customer acquisition.
While most of these companies hold their numbers close to their chests, market leaders are emerging and there may be consolidations on the cards for those who don’t become market leaders.
