PalmPay, a leading Nigerian fintech app, has entered into a strategic partnership with
e-commerce giant Jumia, enabling its customers to pay directly for Jumia products from their
PalmPay accounts. The collaboration aims to simplify online transactions and boost cashless
payment adoption in Nigeria.
This partnership reflects a growing trend among Nigerian fintechs to leverage the pay-by-bank
feature, which has seen increased adoption. According to the Central Bank of Nigeria, internet
transfers accounted for 51.91% of all e-payment transactions in the first half of 2024, up from
45% in 2023.
“We have over a hundred partners that we’re working with for this online payment solution,” a
PalmPay spokesperson announced during a press conference on Wednesday. With a user base
of 35 million, PalmPay is enhancing its offerings to cater to the rising demand for seamless bank
transfers, which remain an efficient and cost-effective payment option.
The partnership comes shortly after Jumia hired Anthony Mbagwu, a former PalmPay executive,
to lead JumiaPay in Nigeria. Notably, JumiaPay is one of PalmPay’s primary competitors in the
region. “By integrating PalmPay, we are providing more options for customers to access
affordable and quality goods with the convenience of cashless transactions,” stated Sunil Natraj,CEO of Jumia Nigeria.
Jumia’s platform recorded 2.6 million orders during its 2024 Black Friday campaign, marking an
18% increase from the previous year. Partnering with Jumia allows PalmPay to expand its
market reach while reducing transaction costs by bypassing third-party card processing fees.
PalmPay’s rapid growth in Nigeria began in 2019 with a $40 million seed investment from
Transsion Holdings. The company gained significant traction in 2023 when a nationwide cash
crunch prompted many Nigerians to turn to fintech solutions as traditional banks struggled to
handle increased online transaction volumes.
“This strategic alliance aligns perfectly with our shared commitment to delivering a superior user
experience and exceptional value to our customers,” remarked Sofia Zab, PalmPay’s Chief
Marketing Officer.
The partnership represents a significant step forward in the Nigerian fintech and e-commerce
industries, showcasing how innovation and collaboration can enhance customer convenience
and drive economic growth.
