The latest report from the Central Bank of Nigeria (CBN) has reflected that Point of Sale terminals are gradually taking the lead in e-transactions with the handling of transactions worth N223.27 trillion in 2024, up from the N110.35 trillion recorded in 2023.
Data from the apex bank’s quarterly statistical bulletin indicated that more and more bank customers were opting for the POS terminals rather than wholly depend on Automated Teller Machines (ATMs) for daily transactions.
Specifically, the report showed that the total number of POS transactions rose from 9.85 billion in 2023 to 13.08 billion in 2024, indicating a 32.7% surge year-on-year compared to ATM transactions volume, which marginally rose from 1.012 billion in 2023 to 1.022 billion transactions in 2024.
During the year under review, the value of ATM withdrawals totalled N29.12 trillion in 2024, a slight increase from N28.21 trillion in the previous year.
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A further analysis of the report’s data revealed that monthly POS transaction values increased from January to December 2024.
For instance, in January last year POS terminals processed N11.50 trillion, compared to the N5.28tn recorded in January 2023 while ATM withdrawals dipped from N3.24 trillion to N2.15 trillion year-on-year.
In February 2024, POS transactions value rose to N12.46 trillion, representing 69% increase from N7.38 trillion in February 2023.Though the volume of POS transactions dropped slightly month-on-month in February but were higher than the 2023 figures just as ATM withdrawals dropped to N1.72 trillion from N1.77 trillion year-on-year.
In March 2024, POS terminals’ value rose to N14.73 trillion, up from N10.62 trillion in March 2023 while the platforms’ transaction volume surpassed the one billion mark. In contrast, ATM transactions dipped, with withdrawals totalling N1.60 trillion compared to N2.16 trillion in the corresponding month of 2023.
According to the report, this trend that showed that Nigerians now preferred POS terminals for transactions to ATM was sustained all through the year but with mixed volumes and values in the months.
Experts believe that the growing preference of Nigerians for POS transactions is not unconnected to convenience, speed, and broader financial access to the POS terminals, despite the high transaction charges the POS agents are making the customers to pay.
Available information on the POS agents’ charges in the Federal Capital Territory (FCT) showed that they charge up to N200 per N5,000 withdrawals in most locations while in Lagos, some agents still charge N150 for the same value of transaction, depending on the location in the city.
