Grace Ene
Jumia is creating a feature for buy-now, pay-later with Jumia Pay services for customers in collaboration with other companies. The service has already signed partnerships with 10 banks and fintech companies in Egypt, where it may debut very soon and start working properly.
The company’s partners will be in charge of credit underwriting and loan disbursement in an effort to increase adoption of the JumiaPay app. In addition to trying to introduce JumiaPay on delivery in Ghana, Morocco, and Uganda, Jumia is also working to expand the number of payment methods that are offered on the JumiaPay app.
Although there were 38% fewer JumiaPay transactions, the company reports that JumiaPay was used for 50% of post-paid transactions in Kenya during Q2 2023. Additionally, it is pursuing a strategy in which it will enable payments for third parties by offering them a white-label solution.
In 2022, the business closed some services and terminated some employees as part of its unrelenting cost-cutting efforts. However, the number of orders, active customers, and gross merchandise value have decreased year over year in the last quarter.
“In June 2023, the average inflation rate across our footprint was 14.1%, with Ghana and Egypt recording the highest rates at 42.5% and 35.7%, respectively. In June 2023, Nigeria’s inflation reached a 18-year high of 22.8%, according to the company’s Q2 2023 report.
The Central Bank of Nigeria declared in June 2023 that it would standardize the nation’s exchange rate. The naira fell precipitously as a result. Benchmarking the Kenyan shilling against the US dollar has also resulted in significant value loss, which has lowered Jumia’s GMV.
Additionally, the business (Jumia Pay) is intensifying its efforts to raise the lifetime value of its clients. Products with strong unit economics that encourage repeat purchases, like airtime recharge, have replaced products that previously required extensive promotion.
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