Palmpay, one of Nigeria’s leading fintech apps, has announced a strategic partnership with Jumia, the e-commerce giant. This collaboration allows Palmpay’s 35 million customers to pay for products on Jumia directly from their accounts, simplifying online transactions and reducing reliance on traditional card processors.
The partnership reflects a growing trend among Nigerian fintechs to adopt pay-by-bank solutions. According to the Central Bank of Nigeria, internet transfers accounted for 51.91% of total e-payment transactions in the first half of 2024, showing an increasing preference for bank transfers. “We have over a hundred partners that we’re working with for this online payment solution,” a Palmpay spokesperson shared during a press conference.
For Jumia, the integration offers an edge in enhancing customer payment experiences. “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 partnership comes five months after Jumia recruited Anthony Mbagwu, a former Palmpay executive, to lead its fintech arm, JumiaPay. Palmpay and JumiaPay are recognized as strong competitors in Nigeria’s growing digital payments space.
Jumia’s recent Black Friday campaign, which recorded 2.6 million orders—a significant 18% increase from 2023—makes the avenue for this collaboration much worthwhile. With customers now able to pay directly via Palmpay accounts, the fintech can bypass card processor fees, improving its payment margins.
Since entering Nigeria in 2019 with a $40 million seed round from Transsion Holdings, Palmpay has rapidly scaled its operations. Its services gained significant traction in 2023 during a national cash crunch, when traditional banks struggled to keep up with surging online transactions.
“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.
Partnerships like this pinpoint how fintechs and online retailers are working together to build a more efficient, cashless economy.
