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Will JumiaPay emerge as a game-changer?

Africa , 29 Aug 2016

Will JumiaPay emerge as a game-changer?

Ecommerce giant Jumia has expressed its active interest in Africa's fast-growing payment space with the recent launch of JumiaPay.

JumiaPay is a third party online payment solution the company says will provide a safer, faster and more convenient online payment experience for users across Jumia's market incorporating 23 countries in Africa.

co-CEO of Jumia, Jeremy Hodara revealed that JumiaPay will not just serve as a payment option for ecommerce, it could also be used to pay utility bills and airtime top-ups. "Jumia Pay has a very simple yet crucial objective: go even further in providing a safe, a secure and a convenient shopping experience to our customers, building trust along the way between us, our thousands of sellers and our millions of customers. We are very proud to be able to offer this new service to our customers and participate in building financial inclusion in Africa to unbanked or underbanked populations."

Hodara also announced that Nigeria will be the first country where JumiaPay will become available while the service will also become available in other Jumia's market across Africa later this year.

The reaction in Nigeria following the official announcement of JumiaPay was an affirmation of the competition between Jumia and rival ecommerce giant Konga which had earlier launched its own standalone payment service dubbed KongaPay.

Many believe Jumia may emerge as the bigger winner if its solution is rolled out quickly and it is able to leverage the coverage and reach of partners MTN and Tigo.

However, there are concerns over the silence of Jumia executives as to whether the company had been able to secure a mobile money operating license from the Central Bank of Nigeria (CBN) as required by law.

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