Home Sectors BANKING & FINANCE Nigerian Customers Pay N92.2bn For Over N4.61tn PoS Transactions

Nigerian Customers Pay N92.2bn For Over N4.61tn PoS Transactions

How PoS Agents Are Fast Replacing ATM Machines

In the first seven months of 2022, bank clients may have spent N92.2 billion using point-of-sale terminals. PoS transactions totalled N4.61 trillion in the first seven months of the year, according to statistics from the Nigeria Inter-Bank Settlement System.

On PoS, a fee of roughly N100 is frequently assessed for withdrawals or transactions between N1,000 and N5000.
The overall cost incurred for PoS transactions throughout the period now equals around N92.2 billion.

oS terminals serve as payment gateways, enabling customers to use their cards for both withdrawals and purchases of goods and services.
The average cost for these transactions is N1,000 for the consumer.

The National President, of the Association of Mobile Money Agents in Nigeria, Victor Olojo, confirmed charges raked in by the operators.

As of January 2022, the country had roughly 955,234 PoS terminals deployed, according to data from the NIBSS.
PoS terminals were introduced to help the country transition to a cashless economy and facilitate payment in rural regions.

The growth of mobile money and PoS terminals is evidenced by ready availability as it has become the most accessible form of payment.

According to a McKinsey report, there are four bank branches, 17 ATMs, and 147 POS devices for every 100,000 Nigerians.

Olojo added, “Agents are making a living out of this, a lot of things are happening. We have agents who have built houses, and who are earning from being an agent, it is a good initiative that is spearheaded by the Central Bank.

“Many agents would not seek white collar jobs because they are earning a lot from the POS business. Many are now landlords, many own properties, and many are married. We have agents who are doing very well and earning way better than bank managers.”

Speaking on the transactional costs, he said it might need to be reviewed upwards of the cost of service and the operating environment.

He said, “The transaction cost should increase, there is something called cost to serve, there is a challenge when it comes to serving customers, location, getting the funds available, security, a threat to life, robbery, and charges of transfer, stamp duty.

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