Rocket Internet’s Jumia Egypt said it is looking at cutting down the use of cash in its pay on delivery options.
Despite major problems facing eCommerce companies, cash-handling was added to the list due to the adoption of pay on delivery from the get-go.
Jumia Egypt said it will partner banks to issue special recharge cards that can be bought by intending customers which can then be used to pay for items when goods are eventually delivered.
According to Dailynewsegypt.com, Hisham Safwat, CEO of Jumia Electronic Trading Company, said that the company is in the process of providing a service to pay the value of purchases through Fawry machines, expecting to launch the new service by the end of this year.
He noted that the company has agreed with a number of banks to provide new products specifically for e-commerce customers, allowing the customer to pay the value of purchases made through the site through ATM machines or by rechargeable cards designated to buying from Jumia that can be obtained from banks.
In recent years, e-commerce has seen significant growth both in terms of volume of sales and the number of dealers in this field. AT Kearney Global Consulting predicted the growth of e-commerce activity in the Middle East to more than $20bn by 2020, with the presence of 200 million youth using digital technologies.
It is not clear whether Rocket Internet will be implementing this approach across all markets where Jumia is operating. This market includes Nigeria, it’s the biggest market where Jumia had witnessed its roughest and most trying operations till date.
Many analysts and stakeholders in the eCommerce business have argued that while PoD had increased interest in local eCommerce purchase, it has further depleted the resources of companies through its unintended consequences such as an increase in cancelled orders, impulse and ‘prank buying’.