Jumia, one of Nigeria’s leading e-commerce platforms has partnered with Nigerian fintech company Credpal, to offer customers a Buy Now Pay Later (BNPL) feature.
This strategic partnership will enable Jumia customers to conveniently purchase products on the platform and spread their payments over time. Also, the partnership will play a crucial role in driving cashless payments across the Jumia ecosystem.
The BNPL feature, facilitated by Credpal, will be integrated into Jumia’s platform, giving customers the ability to spread the cost of their purchases. This payment solution is designed to cater to the financial needs of Nigerian consumers, making high-priced items more accessible.
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Commenting on Jumia’s partnership with Credpal, Sunil Natraj, Jumia Nigeria CEO said,
“We are excited to partner with Credal to offer our consumers a seamless and convenient “Buy Now, Pay Later” solution. This partnership aligns perfectly with our mission to make e-commerce more accessible and inclusive for all consumers. We remain committed to providing Nigerians with a wider range of payment options and fostering financial inclusion within the e-commerce space. The ‘Buy Now, Pay Later’ option will give our consumers more control over their finances and allow them to purchase the products they want at the exact time they need it”.
Also commenting, Fehintolu Olaogun, CEO, CredPal said,
“This partnership underscores our shared commitment to simplifying shopping experiences for everyone. At CredPal, we leverage innovative tech solutions to empower individuals to manage their finances more effectively. Teaming up with Jumia isn’t just about facilitating seamless purchases; it’s about supporting individuals in reaching their aspirations, step by step”.
Jumia’s integration of a BNPL feature reflects a growing trend in the e-commerce industry, where BNPL services are becoming increasingly popular. Reports revealed that the global e-commerce buy now pay later market was valued at $4.2 billion in 2022 and is projected to reach $57.8 billion by 2032, growing at a CAGR of 30.4% from 2023 to 2032.
Several factors have contributed to the significant rise of the e-commerce BNPL market in recent years. One major factor is the rise in popularity of internet shopping, which has encouraged more individuals to shop at online merchants.
Another factor driving the growth of the E-commerce BNPL market is the convenience it offers to consumers. By allowing customers to spread their payments over an item or items, the feature makes it easier for people to make larger purchases that they are not able to afford upfront.
Therefore, it is not far-fetched to say that the integration of a BNPL feature, will help Jumia to drive sales growth, while also providing customers with more flexibility and convenience.
Overall, the Jumia Nigeria and Credpal partnership represents a significant step towards innovating the online shopping experience in Nigeria, making it more inclusive and adaptable to the financial realities of its customer base.