E-commerce giant Jumia has named Anthony Mbagwu as the managing director of its Nigerian fintech arm, JumiaPay.
This strategic move brings in a seasoned professional with a strong background in financial services to steer the company’s payment platform.
Experienced Fintech Professional Takes the Helm
Mbagwu brings over 15 years of experience in the financial services sector to his new role. He joins JumiaPay from a competing fintech company, PalmPay, where he served as a senior business development and partnership manager for ten months.
Prior to PalmPay, Mbagwu held leadership positions at Unified Payments, a leading payment infrastructure provider, and Access Bank.
JumiaPay: A Key Component of the E-commerce Ecosystem
JumiaPay plays a crucial role in the Jumia ecosystem, serving as an integrated payment method on Jumia’s online platforms. In 2023, it processed approximately 39.5% of Jumia’s orders.
Additionally, JumiaPay offers a standalone app that enables users to perform various financial transactions, including bank transfers, bill payments, loans, and merchant payments.
Strategic Appointment Amidst Jumia’s Focus on Profitability
Mbagwu’s appointment aligns with Jumia’s intensified focus on achieving profitability. The company has recently implemented cost-saving measures, such as staff layoffs and the closure of its food delivery arm, to improve its financial performance.
These efforts have resonated with investors, leading to a significant rally in Jumia’s share price, which has nearly quadrupled since the beginning of the year.
Competitive Landscape and Growth Potential
Jumia’s 2023 filing identifies PalmPay as one of JumiaPay’s primary competitors. While JumiaPay processed $192 million in payments for 8.4 million orders in 2023, Palmpay reported a staggering $5 billion in monthly transactions during the same period.
This highlights the substantial growth potential for JumiaPay under Mbagwu’s leadership.
Reporting Structure and Future Outlook
Mbagwu will report directly to Sunil Natraj, the CEO of Jumia Nigeria. This appointment signals Jumia’s commitment to strengthening its fintech operations in Nigeria and capitalizing on the growing demand for digital payment solutions in the region.