Mastercard has agreed to become an investor in Jumia tin a strategic partnership to grow e-commerce operations and support digital transformation in Africa.
Currently, e-commerce is emerging in Africa and accounts for less than 1% of total retail volumes. However, there are over 400 million internet users across the continent which highlights the vast potential for growth.
Jumia and Mastercard first partnered in 2016 with the successful launch of Mastercard Payment Gateway Solutions in several markets. That same year, Mastercard supported Jumia in the launch of JumiaPay, the payment service of the Jumia platform that facilitates transactions for consumers and sellers.
Under this new agreement, the two companies will build on Mastercard’s presence across Africa, bring its deep knowledge and expertise in payment solutions and technologies to spark new innovations and spur development in new customer segments. As part of the deal, the companies have also agreed to build on their current efforts to accelerate the adoption of electronic payment platforms among consumers and merchants.
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“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,” said Sacha Poignonnec, co-CEO of Jumia.
Sami Louali, Executive Vice President for Corporate Development and Financial Services, Jumia said that, “As a global expert in digital payments with 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.”
“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. This partnership with Jumia underpins Mastercard’s commitment to transforming Africa’s digital payments landscape.” – Elcin Yanik, Executive Vice President, Market Development Middle East, and Africa at Mastercard.
“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,” he said.
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