Value of POS transactions rose 20.9% to N862 billion in December 2023

According to data from the Nigerian Inter-Bank Settlement System (NIBSS), POS transactions (Point of Sale transaction) in December 2023 reached N862 billion, marking a 20.9 percent increase compared to the N712.57 billion recorded in November 2023. However, this figure falls short of the N1152 billion transactions processed through the payment channel in March 2023.

The rise in transactions can be attributed to the festive season spending and year-end sales. Additionally, the growing trend of digital transformation and the push for cashless transactions have contributed to the increased adoption of POS terminals by businesses, including small and medium-sized enterprises (SMEs), as consumers gain more confidence in this payment method.

Despite the monthly increase, the fact that December’s POS transactions volume is lower than that of March 2023 suggests a shift back to cash payments among Nigerians. One of the main obstacles to the widespread use of POS for payments, particularly among the poor, is the high transaction cost.

Network failures leading to debited accounts without crediting the POS operator’s account is another issue that takes days to resolve, discouraging people from using POS when there are alternative payment methods available. To encourage more payments through the POS channel, it is crucial to reduce the time taken to rectify failed transactions and lower transaction costs.