EGYPT – Jumia, a Pan-African eCommerce platform, has partnered with the biggest state-owned bank in Egypt, the National Bank of Egypt (NBE), to offer some financial services via its payment channel and business line, JumiaPay.
This partnership comes after the NBE obtained an approval-in-principle from The Central Bank of Egypt (CBE) to engage JumiaPay in processing off-the-platform payments for third-party merchants on the Jumia eCommerce marketplace in Egypt.
As a result of the partnership, some services are now licenced on the JumiaPay business line for Egyptians, and they are, Payment Service Provider (PSP), Payment Facilitator (PayFac) and Payment Aggregator (PA).
These licences will allow for ease of online banking, a medium for merchants to integrate several payment modes, and enable the onboarding process of customers for electronic payments on the platform.
Initially launched as JumiaOne in September 2017, JumiaPay is the fintech vertical of the Jumia eCommerce platform, established as a third-party payment solution to provide a secure and rapid payment system for merchants and service providers.
Jumia, which became the first Africa-focused tech startup on the New York Stock Exchange when it listed there in 2019, reported the fastest growth in order volumes in five straight quarters in the period to end-June.
News of this partnership was revealed in Jumia Reports Second Quarter 2021 Results (PDF) which was released on August 10, 2021.
It said total orders jumped 13% to 7.6 million from the same quarter a year earlier, while annual active platform users edged up 3% to 7 million.
Jumia’s adjusted loss before interest, tax, depreciation and amortization rose 5% year-on-year, while the value of total merchandise slid 11%, it said.
Increased investments in advertising and sales will help recruit new users who it wants to buy more everyday products from its platform like beauty and cleaning products, it added.
During the quarter, advertising and sales expenditure more than doubled to US$17.1 million from the same period in 2020.