- Transactions valued at N18 trillion were processed through Point-of-Sales terminals in 2024
- PoS terminals deployment in Nigeria more than doubled in one year
- The surge in transactions done over PoS terminals is due to cash scarcity at Automated Teller Machines and innovations by fintechs
The value of transactions carried out over Point-of-Sales (PoS) terminals in Nigeria reached an all-time yearly record of N18 trillion in 2024.
This is according to the latest data released by the Nigeria Inter-Bank Settlement System (NIBSS), which also showed that electronic payment transactions in Nigeria surged to an all-time high of N1.07 quadrillion in 2024, the first time to hit the quadrillion mark.
The 2024 record of transactions carried out through PoS terminals represents a 69 per cent increase compared to the N10.7 trillion recorded in 2023.
The volume of transactions carried out over PoS terminals increased by eight per cent year-on-year to 1.5 billion in 2024 compared with the 1.4 billion recorded in 2023.
PoS terminal deployment more than doubled in 1 year
Unlike in the past when commercial banks drove the deployment of PoS terminals, the coming onboard of fintechs has revolutionised this as they have been instrumental in the surge in PoS devices available in the market.
According to the NIBSS data, the number of PoS terminals deployed across the country more than doubled from 2.4 million recorded at the end of 2023 to 5.5 million in 2024.
The figure represents a 129 per cent increase year-on-year.
The data also shows that registered PoS terminals in the country increased from 3.5 million in December 2023 to 7.8 million in December 2024, representing a 4.3 million increase in registered PoS terminals in one year.
Cash scarcity at ATMs, fintech innovation driving PoS growth
There has been exponential growth in the availability, adoption, and deployment of PoS terminals in Nigeria in recent years.
The trend is fuelled by factors like scarcity of cash at Automated Teller Machines (ATMs) and other bank channels as well as the innovation of fintechs.
There have been incessant complaints of unavailability of cash through bank channels, long wait times, and queues, which have turned many Nigerians towards using PoS terminals for transactions.
It would be recalled that in late 2024, the Central Bank of Nigeria (CBN) issued stern warnings to banks over cash scarcity at ATMs, saying it would impose penalties on erring banks.
To ensure the availability of cash and halt the illicit flow of minted banknotes to currency hawkers and economic agents that commodify naira banknotes, the CBN announced a N150 million fine at first instance per branch of banks found guilty.
This directive resulted in the imposition of N150 million fine each on nine banks.
The CBN also introduced a new policy on December 17, 2024, that limits daily cash transactions of N100,000 per customer for cash-out transactions conducted by PoS agents.
The apex bank also set each customer’s weekly cash withdrawal limit at N500,000 irrespective of channel, while each agent’s daily cumulative cash-out limit was pegged at N1.2 million, which banks have begun implementing.
The role of fintechs in PoS deployment
Fintech platforms have also been instrumental in the increased deployment of PoS terminals in the country.
Beyond making cash available, these platforms deployed PoS as a growth strategy, driving financial inclusion, and building small-scale businesses that make up the informal sector.
So far, PalmPay has onboarded over 700,000 agents; Moniepoint has deployed over 800,000 PoS across the country and is planning to introduce an innovation with an all-in-one PoS machine that combines payment processing, inventory management, and transaction reconciliation; and OPay has over 500,000 PoS agents spread across the country.
With growth of digital payment in Nigeria, is cash still king?
Meanwhile, TheRadar earlier reported that the value of digital transactions increased 47.4 times between 2013 and 2023 to reach N657.8 trillion from N13.9 trillion, representing an average monthly figure of N54 trillion over the 10 years.
With the growth in digital transactions, driven by Nigeria’s young demographic, fintech innovations, and the policies of the Central Bank of Nigeria, one wonders if cash is still king.