PoS Terminal Transaction Increases as Nigerians Seek Alternative to Traditional Banks

• In 2024, Nigeria's PoS terminal transactions reached an all-time annual record of N18 trillion
• In comparison to the 2023 PoS transaction value of N10.7 trillion, the 2024 record indicated a 69% rise
• The volume of transactions, however, increased by 8% annually to 1.5 billion in 2024

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The value of transactions over Point of Sales (PoS) terminals in Nigeria surged to N18 trillion in 2024, hitting an all-time yearly record.

This was based on data obtained from the Nigeria Inter-Bank Settlement System (NIBSS).

Driven by a prolonged cash shortage at ATMs and the aggressive expansion of PoS deployments by fintech companies, the 2024 record marked a 69% increase compared to the N10.7 trillion value of PoS transactions in 2023.

Similarly, the volume of transactions grew by 8% year-on-year, reaching 1.5 billion in 2024 compared to 1.4 billion in the previous year, Daily Trust reported.

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While commercial banks had been the major drivers of PoS terminal availability in the past, the entrance of fintech into this space has seen the number of PoS devices in the market grow astronomically.

PoS scams on the rise

Legit.ng had reported that although Point of Sale (PoS) machines have brought significant convenience to financial transactions in Nigeria, numerous individuals in the country have fallen prey to fraudulent activities.

The unscrupulous actions of scammers are dissuading many Nigerians from embracing this technology for their business transactions.

Earlier, Legit.ng reported that Nigerian banks lost a massive N9.5 billion to electronic fraud from January to August 2023.

Many Nigerians favoured it primarily because it allows consumers to withdraw money with minimal commissions, especially when the closest Automated Teller Machines (ATMs) or banks are inconveniently distant.

PoS transactions spared bank customers from enduring extended queues and the intermittent network issues frequently encountered at ATM locations.

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This convenience motivated numerous Nigerians to adopt PoS as an alternative method for depositing or receiving money in any bank account nationwide.

PoS operators raise withdrawal, deposit fees

Legit.ng previously reported that PoS operators across Nigeria have started implementing new withdrawal and deposit fees.

Some operators who spoke to Legit.ng said the changes were a response to current cash scarcity and the decision by the Central Bank of Nigeria decision to limit PoS operators' cash withdrawals to only N100,000 daily.

Another reason given was the introduction of the N50 Electronic Money Transfer Levy (EMTL) charge on every N10,000 deposit in their customers' accounts.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng