The Central Bank of Nigeria (CBN) has reported a massive rise in point-of-sale (POS) transactions, which now outpace ATM usage by 603%.
In the first half of 2024, Nigerians conducted transactions worth N85.91 trillion via POS terminals, far exceeding the N12.21 trillion recorded for ATMs during the same period, as outlined in the CBN’s quarterly statistical bulletin for 2024.
Nigerians rely on POS services, especially as banks struggle to keep ATMs stocked.
Photo credit – Arbiterz, ConsumerConnect,Techpoint Africa
Source: UGC
POS transactions rose by an impressive 77% compared to N48.44 trillion in 2023, highlighting a growing preference for electronic payments. T
his trend has been driven by persistent cash shortages at ATMs and long wait times for withdrawals.
The number of POS transactions also grew significantly, increasing from 4.87 billion in 2023 to 6.39 billion in 2024, marking a clear shift in consumer habits.
In contrast, ATM transactions dropped by 16.6% in value, from N14.63 trillion in 2023 to N12.21 trillion in 2024, with the total volume falling from 519.52 million to 496.43 million. This reflects a move toward fewer but larger ATM withdrawals.
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The rise in POS transactions becomes even more striking when compared to earlier years. In 2023, as cash scarcity intensified, POS transactions surged by 205% in value, from N15.86 trillion in 2022, while their volume grew by 185%.
Meanwhile, internet banking also saw substantial growth, with transaction values more than doubling from N462.17 billion in 2023 to N825.5 billion in 2024, alongside a modest increase in transaction volume.
Similarly, mobile payment platforms experienced a 64% rise in transaction value, from N97.06 billion in 2023 to N159.42 billion in 2024, with transaction volumes increasing by 50%.
This growth can be linked to greater smartphone accessibility and the expansion of mobile banking services in Nigeria.
Traditional cheque transactions, however, continued to decline. Although their value rose slightly from N6.97 trillion in 2023 to N8.74 trillion in 2024, their volume dropped from 8.13 million to 6.88 million, underscoring the shift away from conventional banking methods.
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The rapid adoption of digital payment systems in Nigeria is evident, with POS terminals, mobile payments, and internet banking driving the transformation.
Despite challenges such as a reported 100% hike in POS charges in December 2024, many Nigerians rely on POS services, especially as banks struggle to keep ATMs stocked.
In response to the cash scarcity, the CBN sanctioned nine banks with fines totalling N1.35 billion for failing to provide adequate cash at ATMs during the festive season.
These fines, deducted from the banks’ accounts with the CBN, aim to enforce compliance with cash distribution rules.
Even with these measures, most Nigerians still depend on POS terminals for cash withdrawals due to ATM shortages.
As digital banking continues to evolve, the reliance on POS systems is expected to grow, reshaping Nigeria’s banking landscape.
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Source: Henzodaily.ng