Jumia, the number one e-commerce website in Egypt, announced today a partnership with the Arab African International Bank (AAIB) that will allow AAIB credit card holders to redeem their points through gift vouchers from Jumia Egypt for a unique online shopping experience.
This agreement comes as part of Jumia’s ongoing commitment to driving the growth of e-commerce in Egypt and encouraging online transactions, seeing as 80 percent of e-commerce in Egypt today still relies on cash on delivery.
“Financial institutions are a key player in the growth of e-commerce in Egypt, and that is why we feel that this partnership with AAIB is a great step forward,” said Hesham Safwat CEO Jumia Egypt. “One of the biggest challenges ahead of e-commerce in Egypt and the region is the low credit card penetration. This partnership will encourage both AAIB’s credit card holders and JUMIA customers to select the online payment option by offering them a rewarding system from AAIB.”
The still high number of unbanked consumers in Egypt provides a huge opportunity for further growth in the industry.
In addition, internet retailing is growing in Egypt and consumers are beginning to place more trust in online purchases, and also the rising number of credit cards. According to Central bank of Egypt, 2.5 million credit cards grew by 40% since 2010 and it is expecting to grow more in the coming year. “According to the latest insights, the credit card issuance is growing annually, which indicates that cash dependency may decrease which will allow more online payments usage in the e-commerce industry in Egypt” added Safwat.
The partnership is active now for AAIB and Jumia customers. Vouchers will be identified depending on the customer credit card points.