According to data from the Nigeria Inter-Bank Settlement System, transactions on the various terminals reached N735.6 billion in September 2022 despite a number of difficulties facing Point of Sales (PoS) businesses in Nigeria (NIBSS).
Recently, PoS in the nation has faced difficulties like the price of purchasing terminals, delays in money reversal, network issues, bank/customer problems, security, and insufficient power supply, among others.
Notably, many young people, including women, have become PoS traders as a result of the unemployment issues in Nigeria. According to the NIBSS, Nigerians spent a total of N6.05 trillion over PoS in the final nine months of the year, which is virtually the same amount that was reported for the entire year 2021, which was N6.4 trillion.
According to NIBSS, the number of transactions on PoS grew and reached 100.4 million in September 2022, up 14% year over year.
Statistics show that 1.484 million active terminals used by retailers around the nation processed these transactions. As a result, a total of 568,488 new PoS terminals have been installed in the past nine months, bringing the total number of deployed machines to 915,519 as of December 2021.
However, there is still a discrepancy between the number of deployed devices and registered PoS.
As of September of this year, 2.164 million PoS devices had been registered nationwide by NIBSS, meaning that 680,991 terminals are either still being deployed or have ceased to be active.
The expansion of PoS transactions in Nigeria has been facilitated by the widespread adoption of payment acceptance by merchants.
PoS is also filling the void left by banks’ inability to deploy enough Automated Teller Machines (ATMs), as many Nigerians are now withdrawing money through PoS agents.
The expanding use of POS has been supported by the profitability of POS transactions for both banks and sellers. Customers frequently cover the cost of the transaction, which generates income for the bank and the POS operator.
The NIBSS Instant Payment platform (NIP) handled transactions of N32.8 trillion in September, bringing the total value of e-payment transactions over the previous nine months to N271.5 trillion, according to the study.
The NIP is an online, real-time Inter-Bank payment method based on account numbers that was created in 2011 by NIBSS. It is the favored cash transfer platform in the Nigerian banking sector since it ensures that the receiver receives value right away.
In comparison to the N23.5 trillion reported in September 2021, the e-payment value climbed by 39.5% year, according to NIBSS. The value of electronic payment transactions recorded in the nation in August, which was N33.2 trillion, decreased by 1.2% from the September 2022 number.