PalmPay, a leading Nigerian fintech app, has announced a strategic partnership with Jumia, one of Africa’s largest e-commerce platforms. This collaboration will enable PalmPay customers to pay for products on Jumia directly from their PalmPay accounts, streamlining the payment process and enhancing user convenience.
This partnership comes at a time when Nigerian fintech companies are increasingly focusing on developing payment methods that leverage the pay-by-bank feature. According to data from the Central Bank of Nigeria, internet transfers accounted for 51.91% of total e-payment transactions in the first half of 2024, highlighting the growing preference for digital payment solutions.
At a press conference on Wednesday, a PalmPay spokesperson stated, “We have over a hundred partners that we’re working with for this online payment solution.” PalmPay is committed to building these payment methods for its 35 million customers, as bank transfers continue to be a popular and straightforward payment option. In 2023, transfers accounted for 45% of online retail payments.
The partnership with Jumia comes five months after the e-commerce giant hired Anthony Mbagwu, a former PalmPay employee, to lead the Nigerian arm of its fintech division, JumiaPay. According to Jumia’s 2023 filing, PalmPay is one of JumiaPay’s biggest competitors. Sunil Natraj, the CEO of Jumia Nigeria, commented, “By integrating PalmPay, we are providing more options for customers to access affordable and quality goods with the convenience of cashless transactions.”
Jumia, which recorded 2.6 million orders during its month-long Black Friday campaign—an 18% increase from 2023—offers PalmPay a significant opportunity to boost its payment margins. By enabling customers to pay directly from their accounts, PalmPay can eliminate the fees charged by card processors like Verve for each transaction.
PalmPay entered the Nigerian market in 2019, backed by a $40 million seed round from Transsion Holdings. The fintech rose to prominence in 2023 when a cash crunch led Nigerians to turn to fintech solutions as traditional banks struggled to handle the surge in online transactions.
This strategic alliance aligns perfectly with our shared commitment to delivering a superior user experience and exceptional value to our customers.
Sofia Zab, PalmPay’s Chief Marketing Officer
