JumiaPay— a product by Jumia’s fintech solution product, JumiaPay has marked a year-on-year increase in Total Payment Volume (TPV) by 50% standing at €48.0 million in the third quarter ended September.
Brandnewsday gathers that the JumiaPay’s TPV doubled from 12.2% of the Gross Merchandise Value (GMV) in the third quarter of 2019 to 25.6% of GMV in the third quarter of 2020, a clear sign its ability to drive prepayment adoption on our platform efficiently.
Jumia’s platforms sales increased by 6% from 2.1 million in the third quarter of 2019 to 2.3 million in the third quarter of 2020.
Overall, 34.1% of Orders placed on the Jumia platform in the third quarter of 2020 were paid for using JumiaPay, compared to 30.6% in the third quarter of 2019.
- As part of offering an increasing range of financial services to consumers, Jumia is currently piloting in Egypt a pre-paid physical and virtual card, in partnership with Mastercard and ADIB, a leading bank in the Middle East & North Africa region.
- Jumia launched the pilot of Jumia Games on our JumiaPay app across five countries, in partnership with Mondia, a marketing and digital content distribution company. Jumia Games is a subscription-based service offering unlimited access to over 500 games, including in-app purchases. This initiative aims at providing consumers with a varied range of digital services and engaging experiences while creating more payment use cases for JumiaPay.
Jumia: Gross profit increased by 22% to €23.2 Million in Q3 2020
Jumia, the e-commerce company, recorded a drop in its Sales & Advertising expense by 55% from €13.8 million in the third quarter of 2019 to €6.2 million in the third quarter of 2020, its lowest level in more than 3 years.
Jumia’s gross profit increased by 22% to €23.2 million in the third quarter of 2020 from €19.0 million in the third quarter of 2019 as a result of the increase in Marketplace revenue.
Reacting to the development, Jeremy Hodara and Sacha Poignonnec, Co-Chief Executive Officers of jumia.com.ng, in their words said: “We are making significant progress on our path to profitability with Adjusted EBITDA loss in the third quarter of 2020 decreasing by 50% year-over-year”, Having established Jumia as the leading pan-African e-commerce platform, we have focused over the past 12 months on firmly advancing towards breakeven. The significant progress achieved was mostly attributable to the thorough work we have done on the fundamentals of our business, with limited support from external factors such as COVID-19.
The business mix rebalancing initiated late last year has increased our exposure to everyday product categories and, combined with enhanced promotional discipline, supported unit economics. In addition, we made multiple enhancements across our logistics and marketing operations that led to a decrease in fulfilment and marketing expenses for the third quarter of 2020 by 20% and 55% respectively, on a year-over-year basis.
The portfolio optimization completed last year, along with overhead rationalization, contributed to a decrease in G&A costs excluding share-based compensation of 24% year-over-year in the third quarter of 2020.
Lastly, we continued to TPV to over 25% of GMV in the third quarter of 2020, a clear sign of our ability to drive pre-payment adoption on our platform efficiently. We believe the fundamentals of our business have never been stronger, setting a robust foundation for the long term, profitable growth of Jumia.” drive robust growth of JumiaPay by more than doubling the penetration of JumiaPay.