Customers Pay N92.2 Billion Charges For PoS Transactions In Seven Months

For the first seven months of 2022, bank customers paid about N92.2 billion charges for transactions on Point of Sales terminals.

The data obtained from Nigeria Inter-Bank Settlement System shows that PoS transactions in the first seven months of the year totalled N4.61 trillion, and a fee of N100 is often charged on transactions between N1,000 to N5,000 which brings the total cost charged for PoS transactions within the period to about N92.2 billion.

Also, PoS terminals serve as payment gateways, with customers paying for commodities and bills with their cards. Customers also pay about N1,00 for these transactions.

Victor Olojo, the National President, of the Association of Mobile Money Agents in Nigeria, 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.

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, “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, the threat to life, robbery, and charges of transfer, stamp duty.