PoS Operators Devise New Means of Generating Money as Cash Scarcity Persists in Nigeria
- Reports of scarcity of cash have continued in the country as Nigerians are counting down to Christmas
- PoS operators have devised new means of generating cash to fight the scarcity prevalent in different regions
- Businesses and customers agree that the scarcity is not as intense as that which was faced earlier in the year
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
In recent weeks, findings have shown that a scarcity of cash in the financial system has made it difficult for banks to pay many consumers who wish to withdraw their money.
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Legit.ng reported that PoS operators have hiked charges to over 100% following persistent cash scarcity in Nigeria.
Reports indicated that a lot of PoS businesses have resorted to different alternatives to save their businesses from shrinking.
How PoS generate cash
PoS operators who spoke to BusinessDay said they have had to explore different sources of cash to meet their customers’ demands.
A food seller in Ajah, Lagos, Mariam Abebi, said she is not affected by the scarcity because customers pay through her PoS machine.
Comparing the current scarcity to that of the previous experience in Nigeria, she said customers are still patronizing her, unlike the last time.
Some PoS operators in the Ikorodu area of Lagos also said they were still accepting the price of N100 for N5,000.
Kehinde Akeem, building material trader, said:
“The cash scarcity isn’t as bad as before, although people are scared it might become bad. At Ikorodu where I live, it isn’t scarce but Ajah where I sometimes trade, I pay more to get cash from PoS operators.”
Also, some traders have expressed how they face challenges in terms of supplier payment.
Chibuike, a wholesale raw food vendor at Ilaje market, said:
“I have accepted several payments through my PoS and transfers but I still beg my customers sometimes to pay with cash or use PoS agents so I can get cash."
According to him, this enables him to get enough cash to restock.
Aanu Joseph, a PoS operator in Apapa, Lagos told Legit.ng how she partnered with different filling stations to buy their cash from the sale of fuel to customers.
Earlier, the governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, said that the critical flaw in implementing the naira redesign policy is responsible for the prevailing cash scarcity witnessed in Nigeria.
According to the report, the CBN governor cited defects in various policies and noted that a comprehensive review initiative is ongoing.
Fraud Alert: Palmpay, Opay take action, announce account changes, and customers to update
Legit.ng reported that OPay and Palmpay have announced critical changes to how customers get verified on their platforms.
The two digital banking platforms changed in response to reports of loopholes exploited by fraudsters when opening accounts.
For Opay, there are changes in the identification method of securing bank accounts during the onboarding process.
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Source: Legit.ng
