PoS Operators to Raise Charges as PalmPay, Others Hike SMS Alert Fees, FG Begins EMTL Deductions

• Mobile money operators such as Opay, Palmpay have announced an increase in SMS alert fees by N50
• The operators disclosed that the charges began on June 1, 2025, following the 50% tariff increases by telecom companies
• Due to the increase, Point-of-Sale (PoS) operators have signalled plans to hike their charges to break even

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Mobile Money Operators (MNOs) such as Opay, Palmpay, Moniepoint, and others have announced an increase in SMS alert fees, starting June 1, 2025.

The financial technology companies disclosed that the move was due to the 50% increase in tariffs by telecommunication companies.

Palmpay announces a 50% increase in the SMS alert fee

A message from one of the fintech firms, Palmpay, said the new charges began on Sunday, June 1, 2025.

“Starting June 1, 2025, the cost for each SMS alert will increase from NGN4 to NGN6,” Palmpay said.

Legit.ng earlier reported that the Nigerian Communications Commission (NCC) announced a 50% tariff increase for telecom companies, effective March 1, 2025.

The move prompted a flurry of increases from the telecom companies, which immediately increased their charges for data, calls and SMS.

Additionally, Nigerian banks have also announced a 50% increase in SMS alert charges, attributing it to an increase in telco tariffs.

PoS operators to increase charges

Meanwhile, Point-of-Sale (PoS) operators have signalled plans to increase their charges following the announcement by the fintech companies.

They disclosed that the increase will impact their bottom line as they will be debited for SMS alerts arising from customers’ transactions.

One of the PoS operators, Adedayo Adeleke, told Legit.ng that the operators get debited each time they make transactions on behalf of customers.

“Imagine being debited multiple times a day for transactions originating from customers' withdrawals and deposits. It will affect your profit margin and overall bottom line. So, increasing service charges will be to recoup losses,” he said.

EMTL charges remain N50 per N10,000 transaction

The last time the PoS operators hiked their charges above the two per cent allowed by the Central Bank of Nigeria (CBN) was when the MNOs announced that they would begin N50 deductions for every N10,000 for Electronic Money Transfer Levy (EMTL) mandated by the Nigerian government.

The EMTL deductions led to the operators hiking their charges to N200 for every N10,000 withdrawal and N500 for every N20,000 withdrawal, depending on the locations.

Findings show that some operators in rural areas charge as high as 50% for every withdrawal and deposit.

Palmpay, Opay take action, announce account changes

Legit.ng previously reported that OPay and Palmpay have announced key changes to how customers get verified on their platforms.

The two digital banking platforms made the changes 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.

Source: Legit.ng