Jumia’s fintech solution product, JumiaPay has reported recorded a year-on-year increase in Total Payment Volume (TPV) by 50% reaching €48.0 million in the third quarter ended September.
TPV penetration 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.
The platforms transactions 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, 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.
Jeremy Hodara and Sacha Poignonnec, Co-Chief Executive Officers of jumia.com.ng/ commented:
“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.