The popular payment model of these POS businesses has brought banks to every corner store and street in Nigeria. Instead of visiting banks, people now go to these POS businesses to perform transactions.
Driven by the high unemployment rate, low financial inclusion and inconvenience associated with traditional banking services, POS businesses have become very popular among the middle and lower-class sections of the economy.
This business model serves as a source of employment for many while for others, it has simply replaced traditional banks and given them several alternatives.
Some POS businesses run this model as their primary source of income, others run it alongside their other businesses, mainly retail. From these stores, these businesses provide banking services, including cash deposits and withdrawals, fund transfers, bill payments, airtime recharge and other related services.
POS systems have been widely accepted in Nigeria; Apart from financial inclusion, this model of financial services also serves cash needs in Nigeria, where a lot of transactions are still cash-based. POS systems have also helped to facilitate the ease of doing business without carrying cash.
From Nigeria Interbank Settlement System’s (NIBSS) most recent data, the value of POS transactions jumped 39% to N8.03tn in 2022.
This data was aggregated between July 2021 and July 2022, surpassing the value of transactions between July 2020 and July 2021 estimated at N5.77tn. NIBSS also said July 2022 alone recorded the highest number of POS transactions registered at 2.067 million in just one month.
This data from NIBSS pulls data from all types of POS transactions from payment collections to ones from POS businesses. However, it still shows the incredible acceptance of this model of transactions.