Nigeria POS Transactions Records 29.3% Growth Hitting N4.6 Trillion In 7 Months.
Point of Sale (POS) transactions and business have proliferated in the country, becoming the most preferred option for a lot of Nigerians due to the convenience it affords customers like saving time and energy, cutting off the time-lag inefficiencies of commercial banks.
This has led to a staggering leap in transactions to the tune of N4.6 trillion in the first seven months of 2022, Tekedia reports.
According to the report, “This growth recorded a 29.3% increase, compared to N3.56 trillion recorded in the corresponding period of 2021, and a staggering 90.3% increase when compared to the same period of 2020.
“Also, the volume of transactions rose by 25% year-on-year from N543.7 million to N679.8 million in the same period. Notably, the volume and value of cheque transactions dropped in the same period.
“A total of N1.83 trillion was recorded through cheques in the first 7 months across 2.4 million transactions, a decline compared to 2021.
“Between 2017 and 2022, the number of POS terminals in Nigeria grew significantly, with around 155 thousand terminals, while as of April 2022, the figure reached roughly 1.1 million.
The report also identified several factors that have contributed to the growth of POS transactions in Nigeria. It listed convenience, security, and unemployment as key factors that have led to the ubiquitous adoption of the POS system. Read below;
Factors That Have Contributed To The Growth Of POS Transactions in Nigeria
Using POS transactions no doubt offers customers convenience, as it saves time and energy that would have been spent in banks. These days, there is hardly any day that passes without the presence of long queues at different banking halls across the country.
This often discourages customers who would rather prefer to visit POS outlets despite their charges, than visit banks even with zero charges. It has also helped in bringing services closer to rural areas that do not have as many banks accessible to them, saving customers the stress of embarking on long distances to carry out transactions.
Recall that the CBN established POS systems to drive a cashless policy in Nigeria. This cashless policy has no doubt helped to curb the rate of theft, as people are now more security conscious as they no longer carry huge money around.
Most especially when it comes to the huge transfers of money, customers will prefer to visit a POS outlet to transfer such amount of money mostly through their atm cards.
Nigeria is currently ravaged by a high unemployment rate, which currently stands at 33.3 percent. Due to this, a lot of citizens, especially youths are taking up the POS business, which has become a lifesaver for them where they are able to sustain themselves.