PalmPay, a leading Nigerian fintech, has announced a strategic partnership with Jumia, the e-commerce giant. The collaboration allows PalmPay users to pay for Jumia products directly from their accounts, eliminating reliance on card processors. This move highlights the growing trend of pay-by-bank solutions within Nigeria’s fintech ecosystem.
According to the Central Bank of Nigeria, internet transfers accounted for 51.91% of all e-payment transactions in the first half of 2024, a notable increase from previous years. Speaking at a press conference, a PalmPay representative stated, “We have over a hundred partners that we’re working with for this online payment solution.” With 35 million customers, PalmPay is enhancing payment methods to meet the rising demand for seamless, cashless transactions.
This partnership follows Jumia’s recent strategic hires, including Anthony Mbagwu, a former PalmPay employee, now leading JumiaPay in Nigeria. JumiaPay competes directly with PalmPay, making this collaboration both surprising and strategic. Jumia CEO Sunil Natraj remarked, “By integrating PalmPay, we are providing more options for customers to access affordable and quality goods with the convenience of cashless transactions.”
The timing of this alliance coincides with Jumia’s Black Friday campaign, which recorded 2.6 million orders—an 18% increase from 2023. By leveraging PalmPay’s capabilities, Jumia aims to boost its customer payment options, potentially increasing order volumes.
PalmPay, launched in Nigeria in 2019 with a $40 million seed round from Transsion Holdings, gained significant traction during the 2023 cash crunch when traditional banks struggled to meet surging online transaction demands. “This strategic alliance aligns perfectly with our shared commitment to delivering a superior user experience and exceptional value to our customers,” said Sofia Zab, PalmPay’s Chief Marketing Officer.
This partnership not only solidifies PalmPay’s position in Nigeria’s fintech market but also enhances Jumia’s payment infrastructure, creating a win-win situation for both companies and their customers.
I love to write about the things I love to read about. That includes sports, tech, DIYs, literature, music and entertainment. When I'm not writing, I'm either sleeping, reading, watching a funny Netflix series or eating a bowl of abula.
2 replies on “Jumia and PalmPay Unite to Simplify Online Payments”
[…] PalmPay, one of Nigeria’s leading fintech platforms, has launched its first-ever Verve debit card, marking a significant step in its transition from a mobile wallet to a full-service financial platform. This move aligns with a growing trend among Nigerian fintechs, which are shifting to local card providers like Verve and AfriGo, as rising costs and reduced international spending make global providers like Visa and Mastercard less attractive. […]
[…] latest move signals its ambition to redefine digital banking in emerging markets. From zero-fee transfers and high-yield savings to instant credit, insurance, […]