PalmPay, a prominent Nigerian fintech app, has announced a strategic partnership with Jumia, a leading e-commerce platform, to enable customers to pay for products on Jumia directly from their PalmPay accounts.
The collaboration underscores the growing adoption of digital payment solutions in Nigeria, as fintech companies increasingly build on 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.
Speaking at a press conference on Wednesday, a PalmPay spokesperson highlighted the company’s efforts to expand its payment ecosystem. “We have over a hundred partners that we’re working with for this online payment solution,” the spokesperson said, adding that the initiative is tailored to serve PalmPay’s 35 million users. In 2023, bank transfers represented 45% of online retail payments, reflecting their growing popularity as an efficient payment option.
The partnership marks a significant development in the competitive fintech landscape, coming just months after Jumia appointed Anthony Mbagwu, a former PalmPay employee, to lead its fintech division, JumiaPay, in Nigeria. PalmPay is among JumiaPay’s key competitors, as noted in Jumia’s 2023 financial report.
Sunil Natraj, CEO of Jumia Nigeria, emphasized the benefits of the partnership, stating, “By integrating PalmPay, we are providing more options for customers to access affordable and quality goods with the convenience of cashless transactions.”
For PalmPay, the alliance presents an opportunity to bolster its payment margins. By enabling direct account payments, the fintech eliminates transaction fees charged by card processors, such as Verve. The move also leverages Jumia’s strong market presence, with the e-commerce giant recording 2.6 million orders during its recent month-long Black Friday campaign—a notable 18% increase from 2023.
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PalmPay, which launched in Nigeria in 2019 with $40 million in seed funding from Transsion Holdings, rose to prominence in 2023 amid a nationwide cash crunch. As traditional banks struggled to meet the demand for online transactions, Nigerians increasingly turned to fintech platforms like PalmPay.
“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, highlighting the broader vision behind the partnership.
The collaboration represents a significant step in advancing Nigeria’s cashless economy while enhancing consumer convenience and accessibility in the digital payment space.
