E-commerce leader Jumia has appointed Anthony Mbagwu as the managing director of its Nigerian fintech subsidiary, JumiaPay. Mbagwu, who previously held a senior role at PalmPay, brings over 15 years of experience to the position, having served as the head of business support at Unified Payments and in key roles at Access Bank.
This strategic move by Jumia highlights the company’s intensified focus on profitability and competitive positioning. JumiaPay, which processed 39.5% of Jumia’s orders in 2023, is a key player in the company’s broader strategy. Despite its success, processing $192 million for 8.4 million orders last year, it still lags behind PalmPay’s impressive $5 billion monthly transaction volume.
The appointment of Mbagwu comes as Jumia seeks to streamline operations and enhance revenue. The company has already undertaken significant measures, including staff layoffs and the closure of its food delivery service, to cut costs and boost profitability. These efforts have positively impacted investor sentiment, with Jumia’s share price rising nearly fourfold to $12.16.
JumiaPay, integrated into the checkout process of Jumia’s online platforms and available as a standalone app, allows users to perform a variety of financial transactions including bank transfers, bill payments, and loans. It is reported that JumiaPay’s primary customer is its parent company, reflecting its integral role within Jumia’s ecosystem.
Mbagwu will be directly reporting to Sunil Natraj, the CEO of Jumia Nigeria. His appointment is seen as a strategic step to further consolidate JumiaPay’s position in the competitive fintech landscape, especially against rivals like PalmPay.
