A recent collaboration between Palmpay, a Nigerian fintech app, and Jumia now allows Palmpay customers to make direct payments for products on Jumia from their accounts.
This partnership reflects the trend in Nigerian fintechs creating payment solutions with a focus on bank transfers. Data from the Central Bank of Nigeria shows that internet transfers made up over 50% of total e-payment transactions in the first half of 2024.
Palmpay revealed at a press conference that they are working with numerous partners to provide online payment solutions for their 35 million customers. Bank transfers remain a popular choice for users, constituting 45% of online retail payments in 2023.
The strategic partnership follows Jumia’s hiring of Anthony Mbagwu, a former Palmpay employee, to head the Nigerian division of its fintech service, JumiaPay. According to Jumia’s 2023 report, Palmpay is considered one of JumiaPay’s main competitors.
Jumia, known for its successful Black Friday campaign that generated 2.6 million orders in 2024, aims to enhance its payment margins by teaming up with Palmpay. Direct payments from customer accounts eliminate transaction fees charged by card processors like Verve.
Palmpay, introduced to Nigeria in 2019 with backing from Transsion Holdings, saw increased popularity in 2023 as Nigerians turned to fintechs during a cash crunch that traditional banks faced due to the surge in online transactions.
Palmpay’s Chief Marketing Officer, Sofia Zab, expressed enthusiasm about the partnership, emphasizing a shared commitment to providing superior user experiences and exceptional value to customers.