Despite barriers, the number of POS terminals has increased by 568,488.
With the data provided by the Nigeria Inter-Bank Settlement System (NIBSS), the total value of transactions conducted across all of Nigeria’s Point of Sales (POS) terminals increased to N735.6 billion in September 2022, despite the fact that POS businesses in the country have been facing a number of challenges as of late. Some of these challenges include the high costs of acquiring terminals, delays in the reversal of money, issues with the network, problems with banks and customers, insufficient levels of security and inadequate levels of power supply.
Recently, many young people, including women, have turned to Point-of-Sale (POS) commerce as a solution to Nigeria’s unemployment problems. The NIBSS reports that in the past 9 months, Nigerians had spent N6.05 trillion more than they had at the beginning of the year through these channels. This is almost as much as they spent in the entire year of 2021 (N6.4 trillion). NIBSS reported that the number of POS transactions rose to 100.4 million in September 2022, an increase of 14% year over year.
Transactions were carried out on over 1.484 million active terminals.
Based on the statistics provided on usage, it revealed that these transactions were carried out on more than 1.4 million active terminals that were deployed by merchants across the country. Because of this, the number of point-of-sale terminals has increased by a combined total of 568,488 over the course of the last nine months, bringing the total number of operational machines up to 915,519 as of the end of the year 2021.
Despite all this, there is still a disparity between the number of POS machines that are registered and the number of machines that are actually currently in use. According to the NIBSS, as of September of this year, a total of 2.164 million point-of-sale machines had been registered across the country. All this indicated that a total of 680,991 terminals have either not been put into use yet or have become inactive.
POS is widely adopted because of the shortage of ATMs deployed by banks.
The rapid spread of POS transactions in Nigeria can be attributed, in part, to the widespread adoption of payment processing by business owners. Many Nigerians now make their withdrawals through point-of-sale agents, which means that POS is helping to make up for the severe shortage of Automated Teller Machines (ATMs) that have been deployed by banks. The increasing deployment of point-of-sale systems has been enhanced by the profitability of these transactions for both banks and vendors. Customers frequently pay the bill for the transaction, which results in a profit for both the POS operator and the bank.
Furthermore, the report also revealed that electronic transactions with a total value of N32.8 trillion were carried out in September through the NIBSS Instant Payment platform (NIP). This brought the total value of e-payment deals carried out over the course of the previous nine months to N271.5 trillion. In 2011, NIBSS created the NIP, an online real-time Inter-Bank payment solution based on account numbers. It is the go-to platform for transferring money in the Nigerian financial sector because it ensures the recipient receives their money immediately.
The value of e-payments increased by 39.5% as of September 2022.
Moreover, the value of e-payments increased by 39.5% year on year compared to the N23.5 trillion recorded in September 2021. The total value of electronic payment transactions recorded in the country in August stood at N33.2 trillion, which is a figure lower than the figure reported for September 2022. When compared to the number that was reported for the month before, this demonstrates a drop that is equivalent to 1.2% of the total.
Related Link
NIBSS: Website
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As of recent many people have turned to POS service as a means of livelihood due to the concerning unemployment and poverty issues ravaging Nigerians. Nevertheless, these POS are really useful to us in times of urgent cash withdraw and other transactions.
In recent years, a sizable number of young people, including women, in Nigeria have looked to point-of-sale (POS) commerce as a way to alleviate the country’s issues with youth unemployment.
The fact that so many business owners in Nigeria use payment processing is one reason why POS transactions have grown so quickly there.
Despite challenges been faced by the so called POS the patronage has continued tp rise because it is a good and reliable business and means of livelihood of so many people that does not require other expenses apart from process of procuring the machine for use.
This is actually very true. Almost in every street, you must definitely see 1 to 2 POS terminals. A lot of Nigerians have ventured into it. Thus, there will be increase in the transaction rate.
The pos terminal increase despite of challenges they are facing this pos business provide for financially for the user it is a fast starting business and since there is no employment people are rush to pos business in other for them to survive
The broad use of payment processing by business owners in Nigeria is a significant factor that has contributed to the rapid growth of point-of-sale (POS) transactions in that country.
As a solution to Nigeria’s unemployment problems many turned to POS. Half a bread is better than none they say…at least it engages them. Also
it ensures the customers receives their money immediately instead of queuing in banks.
POS terminals will continue to increase despite its challenges because it’s solving a number of problem as well. Problems like unemployment, customer congestion in banks, etc.
despite the fact that point-of-sale organizations across the nation have been confronted with a growing number of difficulties as of late
The high expenses of purchasing terminals, delays in the reversal of money, and faults with the network are some examples of the challenges that need to be overcome.
Because of the high rate of unemployment in Nigeria, a growing number of young people, including women, have started dabbling in POS commerce in recent months.
There is a continuing discrepancy between the number of point-of-sale terminals that have been officially registered and the number of terminals that are actually being used at this very moment.
The broad use of payment processing by business owners in Nigeria is a significant factor that has contributed to the rapid growth of point-of-sale (POS) transactions in that country.
Many Nigerians increasingly use point-of-sale agents to withdraw cash, making up for the banks’ very inadequate deployment of automated teller machines (ATMs).
Due to the alarming unemployment and poverty crises afflicting Nigerians, many people have turned to POS service as a source of income in recent years. However, these POS systems come in handy when we need to make a quick transaction, such as withdrawing cash.
There is no how the use of POS will not continue to increase everyday because time is money,lots of bad transaction also happens in the bank.
The stress of going to bank while getting there you might meet a lot people. Instead of going through this stress you just decide to use POS.
POS business is another paying work no matter how little it is . People need to survive
Considering the rate if unemployment, how much time you spend in banks or even at ATM outlets, and also the few challenges that comes with using ATM outlets, POS terminals will continue to increase.
In Nigeria we have the population to make things happen. Honestly, POS only cost Nigerian more due to distance and shortage of ATM machines.Though helpful but not the right way.
Definitely there will be an increase in POS terminals because the ATMs machines are not enough and banks couldn’t meet up with the demands of Nigerians.