Jumia has announced that leading global company in payment solutions MasterCard, has agreed to become an investor and form a strategic partnership to grow e-commerce operations and support the digital transformation of the continent, provided certain conditions are met.
While E-commerce accounts for less than 1% of total retail volumes, it is however laced with signs of potential, as there are over 400 million internet users across the continent of Africa, putting it among the largest in the world. This further illuminates the vast potential for growth.
With the new agreement, the two companies will be aiming to build on MasterCard’s presence across Africa, bringing its deep knowledge and expertise in payment solutions and technologies to the forefront, in order to spark new innovations and spur development in new customer segments.
As part of the deal, both companies have also agreed to build on their current efforts to accelerate the adoption of electronic payment platforms between consumers and merchants.
The Co-CEO of Jumia Sacha Poignonnec, said: “We are delighted to strengthen our existing partnership with MasterCard, and consolidate Jumia’s position as the leading e-commerce platform in Africa. This investment highlights the strategic synergies between the two companies, as we both seek to develop the payments ecosystem and drive financial inclusion across Africa.”
Jumia and MasterCard first partnered in 2016 with the successful launch of MasterCard Payment Gateway Solutions in several markets.
In the same year, MasterCard supported Jumia in the launch of its payment service; JumiaPay, which facilitates transactions for consumers and sellers on the Jumia platform.
While physical stores still dominate the commerce industry of Africa, e-commerce is still on the rise and rapidly too. As a global expert in digital payments coupled with its local expertise, MasterCard will provide its unparalleled capabilities to help create further awareness about Africa’s booming e-commerce sector, and allow us to make our services more secure, seamless and reliable for our customers. This is according to Sami Louali, the executive Vice President for Corporate Development and Financial Services of Jumia.
Elcin Yanik Executive Vice President of Market Development, Middle East and Africa at MasterCard, on his part said: “MasterCard has been rapidly expanding its presence and partnerships in Africa, bringing new technologies to the continent, that help to enhance the consumer experience and enable greater access and inclusion.”
He further added that ‘This partnership with Jumia underpins MasterCard’s commitment to transforming Africa’s digital payments landscape. In recent years, we have invested heavily in technology, people and local markets, and have seen tremendous growth in online payments in particular. We look forward to working with Jumia to enhance the region’s digital infrastructure and ecosystem.”
