29 Nov AFRICAN eCOMMERCE AND PAYMENT: NIGERIAN eCOMMERCE IS ALIVE AND WELL AND MOVING RAPIDLY FROM CASH TO ONLINE PAYMENT

eCommerce is alive and well in Nigeria for example, Kaymus an online platform for SME’s already has more than 40,000 SME’s on their platform, educating consumers in the use of eCommerce and paving the way for multinationals to enter the territory.

 

Nigeria is a very connected society with high mobile and internet penetration, so word of mouth is strong.

 

Giants like Jumia and Konga have made significant investments in grabbing market share and educating consumers.

 

Some of these local eCommerce companies are using Nigeria as a springboard to other eCommerce-ready markets like Ghana and Kenya.

 

Kaymu for example is now represented in 17 African countries

 

In the past, logistics was a serious problem and hampering the expansion of eCommerce companies selling physical goods in Kenya and Nigeria, but some of the large eCommerce companies have overcome these teething problems and made it easier for those that follow.

Majority of eCommerce traffic is via mobile and the current consumer behaviour is browsing via mobile and completion of sale on desktop.  

 

A very high percentage of eCommerce payment is COD but according to Carla Adams, MD of African Payment Solutions, there are a number of easier mainstream and alternative payment methods which have widespread adoption and are in use by the Nigerian consumer base like MasterCard Debit Card, Verve Card, and Paga.

 

Kaymu are aiming for a 20% COD and 80% online payment over time.  According to Kaymu a 50/50 cash vs online payment is achievable for them in the next three years and in 5 to 7 years time it could be 30/70.

 

Nigeria has made massive progress with eCommerce adoption over the past 5 years, and consumers have been educated by eCommerce giants Jumia, Kaymu, OLX and Konga.

Contact us now at African Payment Solutions to find out more about how to get paid online by Nigerian consumers using Nigerian payment methods.

 

 

Our thanks to http://ventureburn.com/2015/08/qa-how-kaymu-is-helping-thousands-of-nigerian-smes-move-to-the-cloud/ for their content inspiration