Jumia And Mastercard Partner To Boost Cashless E-Commerce In Africa
Jumia, one of Africa’s fastest growing e-commerce platforms, has partnered with international credit card company Mastercard to make secure and convenient cashless e-commerce a reality in Africa.
Africa’s e-commerce industry is experiencing a growth spurt in recent years, and online retailers across the continent are looking to find ways to attract new customers.
Nigeria-based Jumia, one of Africa’s most popular online stores, believes that building trust and delivering a better customer experience will accelerate the growth that has been experienced thus far.
Many Jumia customers still pay cash for their purchases upon delivery, but a new partnership between Mastercard and the e-commerce platform aims to make cashless payments more prominent, according to AfricaBusinessCommunities.
Jumia currently boasts 200,000 products that are made available to 16 African countries, as the most popular online retailer in Nigeria, according to their website.
Africa’s e-commerce sector has the potential to become a $50 billion industry in the coming years, but efforts need to be made to address widespread challenges and concerns, according to research from Intracen.
Cashless e-commerce is the way forward
Between 65 and 95 percent of all orders processed via Jumia are paid for using the cash on delivery method, varying between to the countries in which the e-retailer operates, according to Footprint2Africa.
In Africa, mobile banking has seen more growth than traditional banking, enabling previously unbanked consumers to transact via their phones, presenting an opportunity to transact on platforms such as Jumia without the need for cash.
The current reluctance to pay for items online is responsible for the high drop-out rate at the check-out stage, as well as many abandoned online shopping trolleys, revealing the need for secure and trustworthy digital payment methods and cashless e-commerce, according to Telecompaper.
Mastercard is famous for its SecureCode feature, which allows for an added layer of security and protection against unauthorized use of credit card details when shopping online.
“Developing stronger and streamlined online retail platforms and offerings is necessary to unlock the full potential of e-commerce on the continent,” said Jeremy Hodara, co-founder and co-CEO of Jumia, according to a Mastercard statement.
“Optimising the overall customer experience by guaranteeing safer and simpler payments means opening the online retail environment to greater numbers of African citizens,” he added.
Daniel Monehin, division president for sub-Saharan Africa at Mastercard, believes that mobile penetration in Africa provides a unique advantage for the e-commerce industry in the region.
“Studies by GSMA indicate that mobile has taken over as the platform of choice for creating, distributing and consuming innovative digital solutions and services in Africa,” said Monehin in the same statement.
“Mobile is an obvious way to boost the growth of the e-commerce sector and deliver a more user friendly experience,” he explained.
It is interesting to note that seven of the 10 fastest growing internet populations in the world are in Africa, according to Hootsuite, and providing a great opportunity for e-commerce growth.
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