PoS machine deployment rises in financial inclusion push
By Jeph Ajobaju, Chief Copy Editor
Deployment of Point of Sales (PoS) machines by merchants and individuals across the country rose from 915,519 in December 2021 to 1.6 million in November 2022, an increase of 684,481 that underscores the growing popularity of the terminals.
Data newly released by the Nigeria Inter-Bank Settlement System (NIBSS) shows a total 703,208 PoS terminals were deployed in the first 11 months of this year to November (11M 2022).
But there remains a wide gap between the number of registered PoS machines and the number deployed.
The NIBSS said 2.363 million PoS machines were registered by November this year, which means 744,987 are yet to be deployed or are inactive.
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PoS transaction value grows to N6.05tr
ePayment transactions soar to N32.8tr
Mobile bank financial transactions rise to N1.8m
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Monthly record in November
PoS transaction value jumped to N759.2 billion in November, a monthly record as more Nigerians go cashless.
The 11M 2022 figure is a 35 per cent increase year-on-year (YoY) versus N560.2 billion in 11M 2021, according to the NIBSS, per reporting by Nairametrics.
NIBSS data shows Nigerians spent N7.56 trillion over PoS in 11M 2022, surpassing N8.4 million in full year 2021 (FY 2021), with December figure yet to be added.
Factors driving PoS growth
The growth of PoS transactions is driven by many factors, among them
- Rapid adoption by merchants for receiving payments.
- Bridges the gap created by the shortage of Automated Teller Machines (ATMs) deployed by banks, as many now withdraw through PoS agents.
- Profitability of PoS transactions for both banks and vendors.
- The cost of transaction is borne by customers, creating profit for PoS operator and the bank.
- Creates jobs for youths building businesses by offering the service.
ePayment transaction value jumps 51% to N42.5tr
Electronic payment (e-payment) transaction volume grew 14.8 per cent YoY to 1.06 billion in 11M 2022 from 922.65 million in 11M 2021, and transaction value rose 51 per cent to N42.5 trillion from N27.9 trillion.
Data released by the NIBSS shows mobile transfers had the highest growth in both volume and value.
Mobile transfer volume rose 180.6 per cent to 87.8 million in 11M 2022 from 31.28 million in 11M 2021. Mobile transfer value notched 43 per cent to N2.1 trillion from N957.4 billion.
NIBSS Instant Payment (NIP) transaction volume increased 53 per cent to 492.2 million from 319.9 million, and value 48 per cent to N38.95 trillion from N25.9 trillion.
