Jumia Strengthens Fintech Arm with Anthony Mbagwu’s Appointment as Managing Director of JumiaPay in Nigeria |
| Jumia Appoints Anthony Mbagwu as Managing Director of JumiaPay in Nigeria: Strengthening its Fintech Arm Image credit: Behance |
JumiaPay Overview and Functionality
JumiaPay, legally established as HELLOPAY AFRICA INTEGRATED SERVICES LTD., is a comprehensive payment platform created to leverage extensive knowledge and experience in global payment systems. It supports both personal and commercial transactions, offering flexible payment options to customers and integrating various local Nigerian payment channels, including credit/debit cards and Direct Debit for Internet Bank users. Available on both mobile and online devices, JumiaPay aims to provide businesses with a seamless checkout experience.
Leadership and Experience
Anthony Mbagwu has been appointed as the managing director of JumiaPay, the Nigerian fintech arm of e-commerce giant Jumia. Mbagwu brings over 15 years of experience in the financial services sector, having previously served as head of business support at Unified Payments and head of service operations at Access Bank. Before joining JumiaPay, he was a senior business development and partnership manager at PalmPay for ten months.
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| Anthony Mbagwu Image credit: LinkedIn |
Competitive Landscape and Market Presence
According to Jumia’s 2023 filing, PalmPay is one of JumiaPay’s biggest competitors. In 2023, JumiaPay processed $192 million in payments for 8.4 million orders, a figure that is significantly lower compared to PalmPay’s $5 billion monthly transactions. JumiaPay is integrated as a payment method at the checkout of online platforms like Jumia, processing about 39.5% of Jumia orders in 2023. It also has a standalone app that allows users to make bank transfers, bill payments, loans, and merchant payments. An insider noted that JumiaPay’s biggest customer is its parent company, Jumia.
Strategic Appointments and Company Focus
Mbagwu’s appointment comes as Jumia intensifies its focus on profitability. The company has implemented cost-saving measures, including staff layoffs and shutting down its food delivery arm. These efforts aim to increase revenue, which stood at $186.4 million at the end of 2023, per its SEC filings. Some of these strategic moves have resonated with investors, as reflected in Jumia's share price rallying to $12.16, nearly four times its value at the beginning of the year.
Jumia’s Response and Market Reaction
Jumia did not immediately respond to requests for comments regarding the new appointment. Mbagwu will report to Sunil Natraj, the CEO of Jumia Nigeria.
As claimed by Jumia, "JumiaPay is a payment platform, created by a team that has brought together their extensive knowledge and experience in global payment systems, for both personal and commercial use."
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