PalmPay Partners With Jumia to Enhance Cashless Payments in Nigeria
PalmPay, a leading Nigerian fintech app, has formed a strategic partnership with Jumia, enabling PalmPay customers to pay for products on Jumia directly from their accounts. This collaboration marks a significant step in enhancing cashless payment options as Nigerian fintechs increasingly adopt pay-by-bank features.
According to the Central Bank of Nigeria, internet transfers accounted for 51.91% of all e-payment transactions in the first half of 2024, showcasing the growing preference for this payment method. “We have over a hundred partners that we’re working with for this online payment solution,” a PalmPay spokesperson announced during a Wednesday press conference. With a customer base of 35 million, PalmPay continues to expand its payment options as bank transfers become a popular and seamless choice for users. Notably, in 2023, transfers constituted 45% of online retail payments.
Speaking on the partnership, Sunil Natraj, CEO, Jumia Nigeria added: “At Jumia, we are dedicated to creating value for our customers by ensuring a convenient, reliable, and secure shopping experience. This partnership with PalmPay strengthens our commitment to enhancing the digital payments within our platform. By integrating PalmPay, we are providing more options for customers to access affordable and quality goods with the convenience of cashless transactions.”
The partnership comes on the heels of a notable hire by Jumia. Five months ago, the e-commerce giant appointed Anthony Mbagwu, a former PalmPay executive, to lead its fintech arm, JumiaPay. In its 2023 filing, Jumia identified PalmPay as one of its primary competitors. “By integrating PalmPay, we are providing more options for customers to access affordable and quality goods with the convenience of cashless transactions,” said Sunil Natraj, CEO of Jumia Nigeria.
The collaboration offers significant benefits to both companies. For PalmPay, it presents an opportunity to increase its payment margins by eliminating fees typically charged by card processors like Verve. Jumia, which recorded 2.6 million orders during its 2024 Black Friday campaign—a year-over-year increase of 18%—aims to strengthen its position in Nigeria’s competitive e-commerce market.
Since its entry into Nigeria in 2019, backed by a $40 million seed round from Transsion Holdings, PalmPay has grown rapidly. Its prominence surged in 2023 during a cash crunch that drove Nigerians to fintech platforms as traditional banks struggled to handle the demand for online transactions.
