In a strategic move aimed at transforming Nigeria’s digital payment landscape, PalmPay, a leading Africa-focused fintech, has partnered with Jumia, a prominent e-commerce platform. This collaboration enables PalmPay customers to make payments directly from their wallets when shopping on Jumia, offering a seamless and cashless transaction experience.
The partnership highlights the growing adoption of pay-by-bank features among Nigerian fintech companies. According to the Central Bank of Nigeria, internet transfers accounted for 51.91% of all electronic payment transactions in the first half of 2024, demonstrating the increasing shift towards direct, bank-linked payment solutions.
“We now have over 100 partners utilising our online payment platform,” a PalmPay spokesperson announced during a press briefing. With its 35 million users, PalmPay is committed to expanding payment options, particularly as bank transfers remain a preferred method for online retail transactions. In 2023 alone, transfers accounted for 45% of payments made in this category.
The partnership comes five months after Jumia recruited Anthony Mbagwu, a former PalmPay executive, to head JumiaPay’s Nigerian operations. JumiaPay, identified as one of PalmPay’s main competitors in Jumia’s 2023 financial report, now benefits from this strategic integration.
“By integrating PalmPay, we are enhancing customer convenience while driving the adoption of cashless payments,” said Sunil Natraj, CEO of Jumia Nigeria. The collaboration not only reduces transaction fees by bypassing card processors like Verve but also creates a direct channel for payments, improving profitability for both partners.
Jumia, which achieved a record 2.6 million orders during its Black Friday campaign, a year-on-year increase of 18% stands to gain from the efficiency and simplicity PalmPay’s wallet integration provides.
To celebrate the collaboration, PalmPay and Jumia are launching a special Christmas campaign from December 11 to December 30. Shoppers who use PalmPay as their payment method during this period will have the chance to win cash rewards, further incentivizing the use of digital payments.
“This partnership exemplifies our shared commitment to enhancing the shopping experience and driving innovation in financial services,” said Sofia Zab, Chief Marketing Officer of PalmPay. She emphasized that the integration aligns with PalmPay’s mission to create user-friendly and inclusive financial services that drive economic growth.
Both companies see this partnership as a step toward promoting a cashless economy in Nigeria, a goal that has gained urgency in light of the country’s increasing reliance on digital payments. PalmPay’s rapid growth, especially during the cash crunch of 2023 when traditional banks struggled with transaction volumes, positions it as a key player in this shift.
Jumia CEO Sunil Natraj affirmed the collaboration’s potential for long-term impact. “This is just the beginning of a deeper partnership aimed at fostering digital payment adoption across Africa,” he said.
The PalmPay-Jumia partnership represents a significant milestone in Nigeria’s fintech evolution, demonstrating how collaboration between fintech and e-commerce can drive mutual growth. By offering more convenient, cost-effective payment options, the alliance is poised to attract new customers while solidifying the loyalty of existing users.
As digital payments become increasingly integral to Nigeria’s economy, partnerships like this will continue to shape the future of commerce and financial technology across the region.
