Palmpay has collaborated with Jumia to enable its customers to pay for products on Jumia directly from their accounts.
This partnership aligns with the trend among Nigerian fintech companies adopting the pay-by-bank feature for online payments. Recently, Paystack integrates with Opay in a bit to tap its 40 million customers.
“We have over a hundred partners working with us on this online payment solution,” Palmpay stated. The company is developing payment options for its 35 million customers, with bank transfers continuing to gain traction as a payment method. In 2023, transfers made up 45 percent of online retail payments.
The partnership follows Anthony Mbagwu’s appointment, a former Palmpay employee, to lead its Nigerian fintech arm, JumiaPay.
According to Jumia’s 2023 report, PalmPay is a significant competitor to JumiaPay. “By integrating PalmPay, we are offering more options for customers to access goods with the convenience of cashless payments,” said Sunil Natraj, CEO of Jumia Nigeria.
Allowing customers to pay directly from their accounts removes the fees charged by card processors like Verve. This presents Palmpay with an avenue to increase its profit as Jumia’s performance during its month-long Black Friday campaign, saw 2.6 million orders.
“This partnership reflects our joint focus on improving user experience and delivering value to customers,” said Sofia Zab, Palmpay’s chief
marketing officer.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
