Gtbank, Flutterwave, now Paystack. Why are payment companies dying to play in e-commerce?

Gtbank has been trying to own an e-commerce platform since 2014. They started with Smemarkethub in 2014, and it flunked. And they are now wasting money on Habari. Flutterwave also launched an e-commerce platform not long ago and Paystack just announce another commerce platform today.
Is there something hidden within e-commerce that the payment companies believe that it’s their call to find/solve or is it just a growth strategy?

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It’s a growth strategy but I wouldn’t add the ‘just’ there. Jumia is struggling and Konga essentially failed so if they are making this play then they are being intentional.

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To answer the question why payment companies play in ecommerce?, it is because commerce and payment are two parts of the same coin. What is payments without commerce, and what is commerce without payments?

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Business reasons best known to them, but this paystack merchant store, all I see is die hard work and a well detailed road map. They support customers with the best service as regards products use and tutorials, one thing that would make the site gbam is integrating calendly or google calendars for consultation based services. The best is that you have a store and you can manage it on their site and it’s free😁.

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This paystack platform is packed with value added functionalities. I am impressed

No mind them …just as GTB has struggled …my prediction is that flutterwave and paystack will struggle …it will fizzle out in time …na me talk am

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Also add Logistics. Apparently, the coin is three-faced.

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It will not. Your prediction is wrong. Jumia and Paystack are operating on different layers of the eCommerce value chain. The eCommerce market since 2015 has become fragmented with many small players preferring to operate independently instead of leveraging on brand marketplaces like jumia and konga. Have you noticed the exponential growth of Jiji? That should tell you where the eCommerce market in Nigeria is heading. All Paystack is doing is improving their chances of taking more commission out of the eCommerce pie that is increasingly becoming fragmented. If I was a small eCommerce player importing from China and selling on social media, I wouldn’t even think twice to use Paystack commerce. :slightly_smiling_face:

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This is apt and accurate :ok_hand:

Maybe i would need to take a second look at the business model paystack and flutterwave is applying …if i may ask , who handles logistics/delivery? @Solze

The merchant themselves. I am quite interested in that part and currently building a product that will provide efficient logistics for eCommerce merchants in Nigeria. Stay tuned, I will announce our launch soon.

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This sums it up. Then add Logistics.

As payment is becoming a utility, offering specialized services can become the differentiator factor for payment companies. That is why JUMIA is “pivoting” to a payment company that offers eCommerce marketplace.

Payments, done right, is the killer app.

Even when this is not obvious, many businesses are payment companies at the core. Like UBER is a payment company that offers ride hailing. Even Facebook debuting WhatsApp Pay, makes it a payment company doing messaging.

Payment-first focused companies are getting this memo and they want to position themselves to be part of the activities where financial transaction occurs.

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Today i checked the Paystack commerce, myself. Its a good innovation.

This is Apt.

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i am also thinking deeply in that direction , maybe we should rub minds , what u say @Solze ?

Yea, sure. We are already putting finishing touches to our android app.

See boldness

Why will they “fizzle out in time”? Is it about their business model? Is it about the market? What’s your reason for this postulation? Kindly enlighten us.

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