Jumia, the e-commerce giant, has appointed Anthony Mbagwu as the managing director of its Nigerian fintech subsidiary, JumiaPay. Mbagwu transitions to this role from a rival fintech company, PalmPay, where he served as senior business development and partnership manager for ten months. He brings over 15 years of experience in the financial services industry, including leadership positions at Unified Payments and Access Bank.
This move comes amid increasing competition between JumiaPay and PalmPay, which Jumia previously identified as a key competitor in its 2023 filings. JumiaPay plays a pivotal role in Jumia’s ecosystem, processing 39.5% of the platform’s orders in 2023. Additionally, it offers a standalone app for services like bank transfers, bill payments, loans, and merchant transactions, though its largest customer remains its parent company.
In 2023, JumiaPay processed $192 million in payments for 8.4 million orders. While this is a notable figure, it lags behind PalmPay’s reported $5 billion in monthly transactions during the same year. Mbagwu’s leadership is expected to drive strategic improvements to bolster JumiaPay’s position in the fintech landscape. He will report directly to Sunil Natraj, CEO of Jumia Nigeria.
Jumia’s intensified focus on profitability contextualizes Mbagwu’s appointment. The company has implemented cost-cutting measures, including staff layoffs and the closure of its food delivery service, as part of its broader strategy to enhance revenue. These efforts have resonated with investors, with Jumia’s share price rising to $12.16, nearly quadrupling since the start of the year.
