In a bid to revolutionize the consumer experience, Jumia is on the brink of introducing an innovative buy now, pay later solution. This venture comes as part of the company’s strategic collaboration with third-party partners. As the development gains momentum, Egypt is poised to become the launchpad for this groundbreaking initiative.

The Q2 2023 report unveiled by Jumia reveals that the company has successfully established partnerships with ten prominent banks and fintech companies in Egypt. These partnerships are a testament to Jumia’s commitment to redefining payment methods in North Africa. With a primary focus on enhancing the utility of the JumiaPay app, the company’s partners will play a pivotal role in credit underwriting and loan disbursement.

Amidst this ambitious endeavor, Jumia is dedicated to expanding the array of payment options accessible through the JumiaPay app. This multifaceted approach aligns with the company’s vision to extend the convenience of JumiaPay on delivery to countries such as Ghana, Morocco, and Uganda.

Despite a 38% decrease in the volume of JumiaPay transactions, the company highlights an encouraging trend in Kenya. A staggering half of the post-paid transactions in Kenya during Q2 2023 were seamlessly processed using the JumiaPay platform. This statistic underscores the growing popularity and trust in the platform’s capabilities.

Jumia’s strategic roadmap also encompasses a pioneering mission to facilitate payments for third-party entities. The company is crafting a white-label solution that will empower these partners to harness the potential of Jumia’s payment expertise. This visionary approach aligns with Jumia’s commitment to being a transformative force in the payments landscape.

In tandem with its aspirations, Jumia has not been immune to challenges. The company undertook cost-cutting measures in 2022, including staff layoffs and discontinuation of certain services. Despite these efforts, Q2 2023 reports indicate a year-on-year decline in key metrics, including quarterly active consumers, order volumes, and gross merchandise value.

“The escalating inflation rates have had a significant impact on our operational landscape. In June 2023, our footprint witnessed an average inflation level of 14.1%, with Ghana and Egypt experiencing peaks of 42.5% and 35.7%, respectively. Notably, Nigeria faced an 18-year high with inflation surging to 22.8%,” revealed the company’s Q2 2023 report.

The economic landscape further shifted in June 2023 when the Central Bank of Nigeria took the monumental step of unifying the country’s exchange rate. This decision had swift repercussions, triggering a decline in the value of the naira. Similarly, the Kenyan shilling experienced depreciation against the US dollar, contributing to the overall decline in Jumia’s gross merchandise value.

Undeterred by challenges, Jumia remains resolute in elevating the lifetime value of its customers. The company’s strategic realignment has led to the discontinuation of products like airtime recharge, which required intensive promotion. Instead, Jumia is focusing on products with robust unit economics that stimulate repeat purchases, ensuring a sustainable and prosperous future.