Global payment systems leader, Mastercard has disclosed plans to become a shareholder in Jumia, a pan-African e-commerce platform, in order to grow e-commerce operations and support the digital transformation in Africa.
In a statement announcing the partnership on Friday, the company revealed that Jumia and Mastercard first partnered in 2016 with the successful launch of Mastercard Payment Gateway Solutions in several markets and launch of JumiaPay, the payment service of the Jumia platform that facilitates transactions for consumers and sellers.
Under the new agreement, the two companies noted that they would look to build on Mastercard’s presence across Africa, bringing its deep knowledge and expertise in payment solutions and technologies to spark new innovations and spur development in new customer segments.
Also, the companies said they had agreed to build on their current efforts to accelerate the adoption of electronic payment platforms among consumers and merchants.
Commenting on the partnership, the co-Chief Executive Officer, Jumia, Sacha Poignonnec, said, “We are delighted to strengthen our existing partnership with Mastercard and consolidate Jumia’s position as the leading e-commerce platform in Africa. This investment highlights the strategic synergies between the two companies, as we both seek to develop the payments ecosystem and drive financial inclusion across Africa.”
On his part, the Executive Vice-President, Market Development, Middle East and Africa at Mastercard, Elcin Yanik, said, “Mastercard has been rapidly expanding its presence and partnerships in Africa, bringing new technologies to the continent that help to enhance the consumer experience and enable greater access and inclusion. This partnership with Jumia underpins Mastercard’s commitment to transforming Africa’s digital payments landscape. In recent years, we have invested heavily in technology, people and local markets, and have seen tremendous growth in online payments in particular. We look forward to working with Jumia to enhance the region’s digital infrastructure and ecosystem.”
This partnership plan is coming a few weeks after Jumia filed for an Initial Public Offering at the New York Stock Exchange.
Reports reveal that the IPO would value Jumia at about $1.5bn and it would trade under JMIA on the NYSE. MTN Group, the largest shareholder in Jumia, is also said to be working on selling its shares in the company to raise about $600m to pay down debt.