Rocket Internet’s SafePay is poised to empower Nigerians through e-commerce says Kaymu Managing Director, Lukas Zels. According to him, SafePay will make transactions across Nigeria safe for buyers and sellers by providing a great environment for trade for small and specialized sellers.
SafePay is an escrow service by Rocket Internet’s Nigerian eBay clone, Kaymu.com.ng that releases payments to sellers on directive from buyers after the delivery of a good. According to Zels, “if goods bought are not delivered to the buyer or doesn’t meet the expected conditions as displayed online, Kaymu refunds the money paid to the buyer and the seller gets their goods back from the buyer.”
How SafePay with Kaymu works: An Infographic
SafePay could be a game changer in Nigeria’s low trust e-commerce market. The “online payment leg” of the country’s e-commerce boom continues to lag the sector’s long term potential causing many e-tailers to adopt cash on delivery payment models. The hope is that technologies such as SafePay help improve the level of trust that consumers have for online retail in general in the country and that it increases awareness of online commerce.
Research by emerging markets research firm, Jana reveals that Nigerians consider lack of security as the third predominant deterrent to shopping online. 23.55% of respondents cited lack of security as the predominant deterrent towards buying goods online compared to 10.45% for cost and 6.3% for lack of adequate options respectively. The lack of the ability to make secure payments continues to remain a main concern for online shoppers in the country. View the full statistics here.
E-commerce in Nigeria is poised to witness significant growth as more and more Nigerians trust the web as a legitimate place to engage in commercial activities. More notably, the prospects for mobile commerce remain significant as technology firms jostle for mobile payments dominance in the continent’s largest mobile subscriber market.