Report Says Customers Paid N92.2 Billion for N4.6 trillion PoS Transactions in Seven Months

Report Says Customers Paid N92.2 Billion for N4.6 trillion PoS Transactions in Seven Months

  • PoS operators say they are making a huge amount of money from the business and have made investments with it
  • According to the Nigerian Interbank Settlement System (NIBBS), bank customers paid about N92.2 billion to use PoS terminals in the first seven months of this year
  • According to a McKinsey report, Nigeria is grossly underbanked as there are fewer banks, and ATMs available to thousands of Nigerians at a particular point in time

As per a report by Nigeria Interbank Settlement System (NIBBS), bank customers may have spent about N92.2 billion using Point of Sales terminals in the first seven months of this year.

PoS transactions in the first seven months of 2022 totaled N4.61 trillion. For withdrawals or transactions between N1,000 to N5,000 on PoS, about an N100 fee is charged. It brings the total transactions in the period to about N92.2 billion.

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PoS transactions
PoS operators making a living from the business Credit: boonchai wedmakawand
Source: Getty Images

What customers pay to use PoS

While PoS terminals are not meant only for withdrawal purposes, they serve as payment methods, with clients paying for commodities and bills with debit cards.

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Customers also pay about N1,000 for most of these transactions.

The business thrives mostly in places with limited banking services. However, even in cities with robust banking services, PoS transactions are thriving.

The Punch reports that the National President of the Association of Mobile Money Agents in Nigeria, Victor Olojo confirmed the amount made by agents.

NIBBS also stated that about 955,234 PoS terminals were used in Nigeria as of January 2022. In addition, CBN launched the Point of Sales Terminals to enhance the cashless policy of the Central Bank of Nigeria (CBN) and aid payments in rural areas.

The growth of the PoS business is apparent as it has become the most accessible form of payment, available at every nook and cranny of the country.

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Nigeria grossly underbanked

A McKinsey report says there are four bank branches, 17 ATMs and 147 POS devices for every 100,000 Nigerians. However, inadequate banking tools mean that Nigeria is grossly under-banked.

According to Olojo, agents make a living out of business, and some have built business houses. He said it is a lucrative initiative by the CBN.

Olojo stated that many agents have dumped their white-collar jobs for the business and have become landlords and property owners.

He said transaction costs might not change because of the operating environment.

Olojo cited some risks associated with the business as sourcing for funds, location, security challenges, a threat to life, robbery and charges of transfer and stamp duty.

Everything you need to Start a POS business in 4 simple steps as the number of bank accounts hit 191.4m reported that point-of-sale (POS) business is gradually becoming one of the most lucrative or profitable businesses and more Nigerians are turning to it amid rising unemployment and a growing number of bank accounts.

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According to Nigeria Inter-Bank Settlement System Plc (NIBSS) there are 191.4 million bank accounts in the country, out of which 133.5 million accounts are active as at December 2021.

The breakdown of bank accounts NIBSS said is 49.8 million current accounts, 120.4 million savings accounts, 8.9 million corporate accounts and 179.2 million individual accounts.


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