Bank customers may have spent N92.2bn to use Point of Sale terminals in the first seven months of 2022.
According to data from the Nigeria Inter-Bank Settlement System, PoS transactions in the first seven months of the year totalled N4.61tn. For withdraws or transactions between N1,000 to N5000 on PoS, about N100 fee is often charged. This brings the total cost charged for PoS transactions within the period to about N92.2bn.
While PoS terminals are not just for withdrawal purposes, they also serve as payment gateways, with customers paying for commodities and bills with their cards. Customers also pay about N100 for these transactions. The National President, Association of Mobile Money Agents in Nigeria, Victor Olojo, confirmed charges raked in by the operators.
Data from the NIBSS also revealed that about 955,234 POS terminals were deployed in the nation as of January 2022. POS terminals were launched to promote a cashless economy in the nation and aid payment in rural areas. The growth of mobile money and POS terminals is evidenced by ready availability as it has become the most accessible form of payment.
According to a McKinsey report, there are four bank branches, 17 ATMs, and 147 POS devices for every 100,000 Nigerians.
Olojo added, “Agents are making a living out of this, a lot of things are happening. We have agents who have built houses, and who are earning from being an agent, it is a good initiative that is spearheaded by the Central Bank. As a matter of fact, many agents would not seek white collar jobs because they are earning a lot from POS business. Many are now landlords, many own properties, and many are married. We have agents who are doing very well and earning way better than bank managers.”
Speaking on the transactional costs, he said it might need to be reviewed upwards of cost of service and the operating environment.
He said, “The transaction cost should increase, there is something called cost to serve, there is a challenge when it comes to serving customers, location, getting the funds available, security, threat to life, robbery, and charges of transfer, stamp duty.”