The total value of transactions through Point of Sale (PoS) terminals in Nigeria reached ₦18 trillion in 2024, setting a new all-time annual record.
This amount is 69% higher than the N10.7 trillion reported in 2023, according to data from the Nigeria Inter-Bank Settlement System (NIBSS). The aggressive spread of PoS terminals by financial technology companies and the ongoing cash shortages at ATMs are the main drivers of the rise.
Similarly, the volume of transactions climbs by 8% year-on-year, reaching 1.5 billion in 2024, compared to 1.4 billion in the previous year.
Fintechs Drive Rapid PoS Terminal Deployment
The expansion of PoS infrastructure accelerates significantly in 2024, with NIBSS data revealing that the number of deployed Point of Sale terminals more than doubles to 5.5 million from 2.4 million at the end of 2023—a 129% surge.
Additionally, registered Point of Sale terminals increase from 3.5 million in December 2023 to 7.8 million in December 2024, indicating that over 4.3 million new terminals enter the market within the year. However, a gap remains, as over 2 million registered devices are yet to be deployed.
Factors Driving PoS Growth
Analysts attribute the rising adoption of PoS payments to various factors, with limited cash availability at bank ATMs playing a significant role. Long queues, frequent cash shortages, and ATM downtimes push more Nigerians toward PoS transactions for payments and cash withdrawals.
“The increasing use of PoS terminals is filling a critical gap for many Nigerians who face difficulties accessing cash through traditional banking channels,” says Lagos-based financial analyst Adewale Adeoye. “Beyond payments, PoS terminals also extend financial services to underserved rural areas where bank branches are scarce.”
PoS Agents Provide Alternatives Amid Cash Scarcity
Initially, Point of Sale services gain traction due to the shortage of ATMs in certain locations. However, the growing issue of cash unavailability in ATMs further positions PoS agents as an alternative for bank customers.
It is now common to find Point of Sale agents operating near bank ATMs, offering withdrawal services when ATMs fail to dispense cash.
For fintech companies such as PalmPay, expanding Point of Sale networks aligns with broader financial inclusion goals. “Our focus remains on deploying more PoS terminals across Nigeria’s 774 local government areas,” says PalmPay’s Head of Marketing and Communications, Femi Hanson. The company reports onboarding over 700,000 agents and continues to invest in expanding its Point of Sale network nationwide.
Similarly, Moniepoint announces the deployment of over 800,000 Point of Sale terminals and plans to introduce an all-in-one device integrating payment processing, inventory management, and transaction reconciliation. Meanwhile, OPay data shows that it has over 500,000 Point of Sale agents operating across the country.
Economic and Social Impact of Point of Sale Transactions
Industry experts highlight the broader economic impact of Point of Sale transactions, noting that increased usage contributes to government revenue through the Electronic Money Transfer Levy (EMTL), applicable to transactions above N10,000.
“Many individuals and families now rely on PoS business as a source of income, benefiting from transaction fees,” Hanson explains. “Beyond financial inclusion, PoS operators provide convenience, particularly during cash shortages.”
Concerns Over Rising PoS Transaction Charges
Despite the benefits, rising Point of Sale transaction fees remain a concern for many Nigerians, particularly in areas where cash availability remains limited.
In Lagos, for instance, withdrawal charges surge to as much as N500 per N5,000 transaction—significantly higher than the previous N100 to N200 range. Higher withdrawal amounts attract even steeper charges.
Point of Sale operators, however, attribute the increased fees to the rising cost of sourcing cash, stating that they often purchase cash from alternative sources, including fuel stations, due to banks’ inability to meet withdrawal demands.
Electronic Transactions Hit N1.07 Quadrillion in 2024
In a related development, electronic payment transactions in Nigeria reach N1.07 quadrillion in 2024, setting an all-time record and surpassing the quadrillion mark for the first time.
This is a 79.6% rise over the N600 trillion reported in 2023, according to NIBSS. With real-time interbank transfers available through digital banking channels like mobile apps, USSD, internet banking, Point of Sale, and ATMs, the NIBSS Instant Payment (NIP) platform is the industry leader in electronic transactions.
