NIBSS reports show that POS transactions are becoming acceptable.
As ATM withdrawals are increasingly becoming difficult to make, they are instead being replaced by Point of Sales (POS) transactions. According to reports from the Nigerian Inter-Bank Settlement Systems (NIBSS), the value of transactions done at POS terminals across Nigeria has risen by N1.05 trillion in 2022. The report which was contained in Business Day 22 shows that POS transactions done across the country rose from N3.56 trillion in the first 7 months of 2021 to N4.61 trillion in 2022.
According to the data, the transactions increased by 29 percent. However, a month-on-month analysis revealed that the value of POS transactions dropped in April and June after a N143 billion increase in March 2022. Similarly, the volume of POS transactions from January to June rose from 679 million. That is a 25 percent increase compared to 543 million in the corresponding period in 2021. In the first 7 months, POS banking agents increased to 8.04 million, while registration increased to 11.8 million which was deployed from January to June, compared to the 4.4 million banking agents and 6.8 million registered in the same period of 2021.
There is an increasing acceptance of POS transactions.
The sharp increase in year-on-year volume and value of transactions indicates increased acceptance and use of POS for payment for goods and services. The month-on-month decline reflects the seasonal effect on the level of spending across the country. The data paints a clear picture of the increased interest in POS as a means of transactions, especially with Nigeria’s continuous adoption of a cashless policy and the downsides of having to move around with cash and queue at the banking hall for withdrawals and deposits.
When interviewed, some POS investors indicated that the business is one of the lucrative ventures that makes an average of N10,000 to N300,000 or more daily. A POS vendor, Mustapha Iliyasu, confirmed that the business produces a large amount of daily profit. He says he makes more than N300,000 daily and pays N45,000 in monthly salaries to 5 employees. He also added that these all depend on capital, location, and number of transactions made within the day, week and month.
POS compliments ATM by bridging the gap between the two.
Experts say that the growth of POS transactions is bridging the gap created by the shortage in Automated Teller Machines (ATMs) deployed by banks, as many Nigerians now prefer to patronize POS agents. It is also an enabler for creating job opportunities for Nigeria’s teeming youths, who are facing an unemployment rate of over 42 percent. According to the Central Bank of Nigeria (CBN) 2019 National Financial Inclusion Strategy document, the number of banking agents rose by 51 percent to 236,940 in December 2019 from 38,416 agents in December 2018.
Similarly, a total of 568,488 additional POS terminals have been deployed over the last 9 months as the number of deployed machines stood at 915,519 as of December 2021. The opportunity to make an additional income is a major motivation for becoming an agent, a 2020 Enhancing Financing Innovation and Access (EFINA) agent survey revealed. According to the survey, agents surveyed are signed up by different principals or service providers. But First Bank (First Monie), OPay, Quickteller, and MTN top the list of principals with a majority share of agents.
System has some advantages and disadvantages too.
POS systems are able to carry out tons of processes with lots of them being automatic. Some other advantages of POS systems include better customer service, easier team management, increased sales and more. On the flip side, there can be some disadvantages, such as security risks, costly pricing and malware infections. POS has been used in Nigeria for fraud and swindling people. There have been reported cases of cloning of customer’s card details as well as kidnappers forcing their victims to withdraw via POS.
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The acceptance of POS is massive everywhere because people find it hard to go to bank because of the stress,slow way of been responded to by staffs,and location of some banks been too far so an alternative place is the nearest POS.It has really create employment for enought people.
POS system is one of the entrepreneurship means in which youths have engaged themselves in to earn a living. The government should ensure the enabling environment shouldn’t be taken away from them.
Everything that have advantages must also have disadvantages,lots of sharp practices have been reported from transaction from POS but the business has really provide thousands of job opportunity and also generating revenue to both banks and government.
POS is more easy to get money from than ATM and the stress of going to the bank is another issue. P
POS system is one of the easy entrepreneurship
The substantial rise in transaction volume and value year over year suggests growing acceptance and use of POS for making purchases of products and services. As many Nigerians increasingly choose to use POS agents, POS transactions are filling the vacuum left by the lack of Automated Teller Machines (ATMs) used by banks.
Pos was introduced because it embodied good intentions…. But now.. It is used to fraud,swindling people even kidnappers no carry last.
Bank and government should work together in putting all this unlawful acts to an end, they are the most beneficial of the whole stuff.
Compared to the relatively low number of banking agents, the number of POS banking agents saw an increase, as did the number of registrations, which were carried out between January and June.
The dramatic year-on-year increase in the volume and value of transactions points to a growing acceptability and utilization of POS systems for the purpose of making payments for goods and services.
The conveniences in the utilization of the POS is one of the contributor to its rise in the country. Also the adoption of its as commercial service alone is enough to justify it.
The seasonal effect on the level of expenditure throughout the country is reflected in the monthly decrease that was seen across the board.
People are more interested in pos now it serve as job to earn money fast and pos is easily now to make transaction whether withdraw or sending of money so people are rushing to it
The findings give a clear picture of the growing interest in POS as a form of transaction, particularly in light of Nigeria’s ongoing adoption of a cashless policy.
Many Nigerians now prefer to do business with POS agents, and this trend has helped make up for the dearth of ATMs in use by banks.
It’s unfortunate that there have been reports of both cloning of customers’ card details and kidnappers forcing their victims to withdraw money from POS terminals, but these things have happened.
Young people have turned to POS systems as a way to start their own businesses and make a living. The government should make sure they can keep the enabling environment.
The nationwide monthly decline that was observed reflects the seasonal impact on the level of spending across the nation.
The preference of many Nigerians to transact with POS agents has helped banks make up for the lack of ATMs in operation.
POS might look so okay and job creating for some. The truth still remain that for this country to become a developed country, we go beyond just this level. The use of POS by many shows the weakness of our banks to met up with the demands of Nigerians.
As more Nigerians now prefer to use POS agents, the growth of POS transactions is filling the gap left by the lack of Automated Teller Machines (ATMs) installed by banks.