Eighty-nine per cent of Nigerian internet users shop online or expect to do so in the future, according to a study conducted by Ipsos on behalf of PayPal, providing a boost to the country’s e-commerce sector.
Nigeria’s e-commerce space is busy, including the likes of Jumia, Konga and Gloo, and the report found that out of the approximately 50 million internet users in the country, 65 per cent already shop online and another 24 per cent expect to do so in the future.
“Nigeria is without a doubt a significant e-commerce nation leading in the amount of potential and existing online shoppers, compared to South Africa (70 per cent) and Kenya (60 per cent),” the report said.
Several key drivers would encourage even more e-commerce in Nigeria, with 53 per cent of Nigerians who have shopped online in the past saying faster delivery of goods would encourage them to do it more often. Meanwhile, 40 per cent said safer ways to pay were key, while 31 per cent wanted lower product costs.
Fear over security of online payments means cash on delivery is still the preferred payment method when shopping online, with 39 per cent of online shoppers using cash and 32 per cent indicating it is a preferred payment method for online purchases.
“Online security matters. This is why PayPal provides a simpler, easier and more secure way to shop and pay on millions of websites around the world,” said Efi Dahan, regional director for Africa and Israel at PayPal. “The fact that PayPal does not share financial information with the seller when authorizing a transaction keeps the consumers’ financial details more secure.”