In 2024, POS transactions in Nigeria surged to N18 trillion, marking a record high. This data comes from the Nigeria Inter-Bank Settlement System (NIBSS).
The increase represents a 69% rise from the N10.7 trillion recorded in 2023. Several factors contributed to this growth. A prolonged cash scarcity at ATMs made PoS payments more attractive. Additionally, fintech companies aggressively expanded PoS terminal deployments.
The number of PoS terminals deployed across Nigeria more than doubled, reaching 5.5 million in 2024, up from 2.4 million in 2023. This represents a 129% increase.
Fintech companies played a significant role in this expansion. For instance, PalmPay deployed more POS terminals nationwide to drive financial inclusion. Similarly, Moniepoint introduced an all-in-one PoS machine to enhance payment processing and inventory management.
However, the rise in POS usage has led to concerns about increased transaction charges. In some areas, fees for withdrawing N5,000 have risen to N500, compared to N100 or N200 previously. Operators attribute these higher charges to the costs of obtaining cash, as they often need to source it through alternative means.
In summary, the surge in POS transactions in Nigeria reflects a shift towards cashless payments. While this trend offers convenience, it also presents challenges, such as higher transaction fees.
