Transactions via the Point of Sale (POS) services have soared in the last 6 years in Nigeria.
This indicates the growing adoption of POS as a payment method and suggests it may be a viable side hustle.
Considering the current economic climate, the expanding reach of POS services in augmenting the conventional banking gaps also presents new opportunities for people intending to start micro businesses.
Sounds good?
That is being pocket smart!
The volume of transactions processed via Point of Sale (POS) services in Nigeria has steadily increased, reflecting demand for POS services alongside other payment methods such as internet transfers, ATMs, cheques, and others.
In the last 6 years, the number of transactions via POS increased by 384% from 286 million in 2018 to 1.3 billion in 2023.
The per capita volume of transactions processed through POS has also steadily grown in the last 6 years.
The average Nigerian increased their POS transactions from 1.4 per person in 2018 to 6.2 per person in 2023.
The value of transactions processed through POS also soared in the same period. It has risen from N2.3 billion in 2018 to N10.7 billion in 2023.
Regarding the value of transactions, the average per capita transaction processed through POS systems quadrupled from N11,708 per person in 2018 to 47,974 in 2023.
As more businesses adopt these systems, we can expect this trend to continue.
POS services in Nigeria continue to rise, becoming increasingly sought after in both rural and urban areas.
POS is an agent banking system that provides alternative financial services to people outside the traditional banking system and automated teller machines (ATMs). It offers services like money transfers, withdrawal of cash, deposits, and payment of bills such as utility bills, data, and cable subscriptions.
The volume of POS transactions increased in the last 2 years as much as internet transfers, making it the second most used payment option in Nigeria.