FirstBank of Nigeria has said the continual promotion of the cash on delivery method of payment for e-commerce transactions is a major threat to e-payments in Nigeria.
Chuma Ezirim, FirstBank’s head of e-business, said this at the official launch of the bank’s partnership with PayPal.
Jumia Nigeria co-chief executive officer (CEO) Nicola Martin recently told HumanIPO cash on delivery accounts for about 80 per cent of the company’s total sales, and Ezirim said the continual preference for cash on delivery by e-commerce customers means Nigerians still do not have confidence in e-payments.
He however said Nigeria is still recording major successes in e-commerce and e-payments in the midst of numerous challenges.
“Mobile growth in internet is pushing global business to customers. For the past five years, the e-commerce market in Nigeria has been growing at a double digit rate in Nigeria. The rise in the number of online markets in Nigeria positions Nigeria to play in global ecommerce space,” he said.
“Access to data a major challenge in Nigeria. Although investment in communications has exceeded US$25 billion, there are still infrastructural challenges.”
