PoS Terminals in Nigeria Surpass 1.8 Million Mark in March 2023

Key Points

• In March 2023, the total count of PoS terminals installed in Nigeria reached 1.8 million, as reported.
• Compared to the same period last year, the number of deployed terminals has increased by 75%, when it was at 1.04 million.
• Additionally, the platform observed a surge in transaction value over PoS terminals, with N1.1 trillion being the highest monthly record.

Point of Sales (PoS) Machines on the Rise in Nigeria: A Comprehensive Look

Point of Sales (PoS) machines are electronic devices used by merchants and individuals to facilitate payment transactions.

In Nigeria, the adoption of PoS machines has been on the rise, as more Nigerians turn to cashless transactions.

According to the latest electronic payment data released by the Nigeria Inter-Bank Settlement System (NIBSS), the number of PoS machines deployed in Nigeria has reached 1.8 million as of March 2023.

Growth in PoS Machines Deployed

The latest NIBSS data shows that the number of PoS machines deployed in Nigeria has increased by 75% compared to the same period last year, which was 1.04 million.

776,089 new PoS terminals were deployed in Nigeria in the past 12 months, as reported by the Nigeria Inter-Bank Settlement System in March 2023.

However, this is still lower than the total registered terminals, as a total of 2.329 million PoS machines had been registered across the country as of December 2022.

Transaction Value on the Rise

Nigeria’s PoS transactions soared to a new monthly high in March 2023, hitting N1.1 trillion.

This surge is due to the scarcity of cash, which is driving more people towards cashless payments.

Compared to last year’s March figure of N718.5 billion, there is a 60% increase. Likewise, the volume of transactions has risen to 177.9 million, representing a 72.8% increase over last year’s March figure of 102.9 million.

According to NIBSS data, in the first three months of this year, Nigerians have spent a total of N2.8 trillion on PoS transactions.

Driving Forces of PoS Machines Adoption

PoS machines are becoming more popular in Nigeria due to various reasons.

Firstly, the recent cash scarcity has forced more Nigerians to embrace cashless transactions, thereby increasing the adoption of PoS machines.

Additionally, merchants are rapidly adopting PoS machines for receiving payments, as it offers a convenient and secure payment option.

PoS machines are also bridging the gap created by the shortage of Automated Teller Machines (ATMs) deployed by banks, as many Nigerians now withdraw through PoS agents.

PoS transactions are profitable for banks and vendors, with the cost of the transaction usually paid by the customers, creating profit for the PoS operator and the bank.

Additionally, offering PoS services has become a means of employment for Nigerian youths, further fueling the growing deployment of PoS machines.

Challenges Facing PoS Machines Adoption

Despite the significant increase in PoS machines adoption in Nigeria, there are still some challenges facing the system.

The major challenge is the lack of infrastructure and electricity to power the PoS machines, especially in rural areas.

Poor network connectivity is also another major challenge that needs to be addressed to ensure seamless PoS transactions.

Conclusion

The rise in PoS machines adoption in Nigeria is a welcome development as it offers a convenient and secure payment option for Nigerians. The increased adoption of PoS machines also signifies a growing trend towards cashless transactions, which is a positive development for the country’s economy. However, the challenges facing PoS machines adoption must be addressed to ensure the system’s sustainability and effectiveness.