Nigerians process N5.99 trillion transactions via PoS in 8-month ~NIBSS
By Samuel Bankole
Financial transactions volume of 382.84 billion and valued at N5.99 trillion were processed through the Point of Sales (PoS) platforms in the first eight months of the year, according to data from the Nigeria Interbank Settlement System (NIBSS) on Monday.
PoS are channels of payments usually deploy by merchants for their customers to pay through electronic transactions for goods and services bought.
NIBSS data showed that the highest transactions through the channels were conducted in June, amounting to N5.55 trillion as the economy gradually reopens from the lockdown imposed by the government to contain the spread of the coronavirus pandemic in the country.
Most supermarkets, fuel stations and restaurants have increased the usage of PoS channels as payments by customers to ease the burden of cash transactions and the cumbersome currency process and security.
Also, data from the NIBSS showed that there has been a progressive transition from cash usage to PoS in the period between 2017 and 2020.
For instance, the data showed that the valued of transactions through the channels grew from N124.395 billion in August 2017 to N204.805 billion in the same period of 2018 and rose to N294.036 billion by 2019 and N386.351 billion in August of 2020.
Similarly, progression was recorded in the period of July 2017 to July 2020 as transaction value grew from N116.57 billion in July 2017 to N185.041 in 2018 and N279.475 billion and N416.727 in July 2019 and 2020, respectively.
Apart from the PoS payment channels, there are other platforms being deployed by financial institutions, including newly licenced Payment Bank Service and telecoms firms in the country.
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The increasing use of technology-driven payments systems in the country has continued to ease the pressure on cash processing and reduce incident of robbery in some of the merchants’ outlets.
However, many Nigerians in the rural areas are mostly cut off from the use of electronic financial transactions due to limitations in telecommunication reach and financial literacy in those communities.
Also, the usage of electronic financial transactions has increased the incidents of cybercrime and attack as many people have been reportedly suffered losses to criminal gang defrauding them of billions of naira through attack on online transactions.