According to data obtained from the Nigeria Interbank Settlement System, the value of Point of Sale transactions in Nigeria has jumped 39 per cent to N8.03 trillion in 2022.
The data revealed that the aggregate PoS transactions between July 2020 and July 2021 were estimated at N5.77 trillion.
However, between July 2021 and July 2022, the volume of transactions increased to N8.03 trillion, indicating a 39.16 per cent increase over the period.
The data further showed that July 2022 alone recorded the highest number of PoS transactions registered at 2.067 million in just one month.
Gabriel Idahosa, the Deputy President of the Lagos Chamber of Commerce and Industry (LCCI), said the primary factor responsible for the recorded value of PoS transactions was an increase in the supply of services and a strong market.
“First, the central bank approves payment services such as Momo Money from MTN and Smart Cash from Airtel.
“Then, you have a lot more fintech companies advertising payment services. Organisations are allowing payments on their platform.
"Now, power companies allow payment of electricity bills over PoS, and even some government services let you do that.
"All the schools, both primary and secondary, allow you to use PoS too. Also, the banks have been very aggressive in promoting their PoS services.
“The culture of non-cash payment is catching up very fast.
"Even for the illiterate that ordinarily cannot use the service, the increasing offer of USSD service which you can do over your phone means that many people with cell phones can now make payments.
“These were initially triggered by COVID-19 when people could not easily walk to the banks to cash. So, during that time, banks were partially closed for some time, and it became difficult.
"Those people who were not familiar with electronic payment options now began to learn it. And now, it is the preferred mode of payment.”
Speaking on the development, Bismarck Rewane, an economist, said that the increment was influenced by technological advancement.
“There’s a shift from cash and cheques to electronic payment. That’s why there has been an increase.
"There is broadband penetration, more mobile phone subscribers, and Nigerians are becoming more internet-savvy.
"So, they are making payments electronically rather than going by brick and mortar.”
Dr Olusegun Vincent, a Senior Lecturer at Pan Atlantic University, further explained that inflation also added to the increase
“Inflation is part of the surge. Prices of goods and services have gone up. Another major aspect is the issue of insecurity.
"People are being very careful. That’s why they adopt PoS because of the ease of payments.
"You will discover that if you don’t use PoS, you can’t get money. Most Automated Teller Machines are often running out of funds.
"So, nobody wants to waste time and they go to the merchant.”
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