About three year ago, Nigerian shopping giant, Jumia, announced the launch of its third-party payment solution which provides a ‘more convenient’ payment method to its users.
Before then, Jumia‘s cash-on-delivery payment method constitutes between 70-90% of its payment methods.
So, the JumiaPay initiative was aimed at facilitating online payments across the 23 countries the company operates in.
JumiaPay is an online payment service that enables you to make payments online securely, instantly, and cost-effectively and also committed.
But one question that has been on the lip of some users is: will JumiaPay become a full time FinTech business model?
Well, the answer we have got suggests that the e-Commerce giant is thinking along that line.
Most importantly, the recent €50 million investment by Mastercard into Jumia, in a concurrent private placement with its Initial Public Offering, marked another milestone in the development of JumiaPay and validation of its potential to become a full-fledge fintech product.
Jumia is partnering with Mastercard on a number of initiatives, including the development and marketing of co-branded products (i.e., cards, virtual cards and quick response codes).
The Co-CEO of Jumia, Sacha Poignonnec, said: “We are delighted to strengthen our existing partnership with Mastercard, and consolidate Jumia’s position as the leading e-commerce platform in Africa. This investment highlights the strategic synergies between the two companies, as we both seek to develop the payments ecosystem and drive financial inclusion across Africa.”
The Executive Vice President, Market Development, Middle East and Africa at Mastercard, Elcin Yanik, also said: “Mastercard has been rapidly expanding its presence and partnerships in Africa, bringing new technologies to the continent that help to enhance the consumer experience and enable greater access and inclusion.
“This partnership with Jumia underpins Mastercard’s commitment to transforming Africa’s digital payments landscape. In recent years, we have invested heavily in technology, people and local markets, and have seen tremendous growth in online payments in particular. We look forward to working with Jumia to enhance the region’s digital infrastructure and ecosystem.”