Deposit money banks in Nigeria are intensifying efforts to capture a share of the Point of Sale (PoS) market, long dominated by fintech firms amid dwindling ATM usage. With services like GTBank removing processing fees on PoS terminals and UBA launching upgraded solutions, banks aim to attract small businesses. This shift reflects their strategy to embrace Nigeria’s vast retail and agency banking sector, offering benefits like instant settlements and real-time transaction tracking. Read more.
Nigeria’s PoS channels have significantly grown, recording over 5.56 million active terminals, with firms like Moniepoint and Palmpay leading this expansion. Fast-tracking financial inclusion, over 42 million SMEs are benefiting from ease of access and enhanced connectivity. Despite fintechs’ lead in technologically driven solutions, banks form the ecosystem’s financial backbone, partnering to broaden cashless payment reach, particularly in areas like Lagos and Abuja.
Key Takeaways:
- PoS transactions in Nigeria increased by 77.35% in 2024’s first half.
- Fintechs like Moniepoint and OPay dominate the Nigerian PoS market.
- Banks now focus on broadening reach to SMEs in urban and rural areas.
How do you think the increasing prevalence of PoS technology will transform financial transactions in Nigeria, particularly in areas like Lagos and Abuja? Share your thoughts below!
