The Point of Sale (PoS) transaction channel in Nigeria hit N3.20 trillion in 2019.
This report was disclosed in the latest data released by the Nigeria Inter-Bank Settlement System Plc. (NIBSS).
According to NIBSS, the total value transactions increased from N2.32 trillion in 2018 to N3.204 trillion by the end of 2019.
This implies that the value of transactions from PoS machines rose by N882.03 billion (37.9%) in one year.
It also shows that in January 2019, N222.9 billion worth transactions were carried out through the channel in January.
However, in February, there was a big drop in the value of PoS transactions to 193.4 billion – the lowest recorded in the year.
On the other hand, the highest value of PoS transactions was recorded in December (N372.68 billion). This means between January and December 2019, PoS transactions rose by 67%.
Similarly, the volume of PoS transactions jumped in the year. In 2019, the volume of PoS transactions rose to 438.6 million, up from 285.8 million in 2018. This means PoS transactions in terms of volume rose by 53.4% (152.7 million).
Also, the highest volume of PoS transactions was recorded in December, with a total of 46.13 million transactions.
However, the volume of transactions dropped in February, representing the lowest (25.7 million) in the year.
The use of interbank instant payments on USSD platforms by bank customers received a significant boost in 2019, as transactions through NIBSS Instant Payment (NIP) hit N105.2 trillion, up from 80.4 trillion in 2018. This means transactions through NIP rose by 30.8% (24.79 trillion) in one year.
The highest value of transactions recorded through NIP was December while the lowest was recorded in February.
On the other hand, further analysis shows that in 2019, transactions done through mobile transfers (Mobile Inter-scheme Transactions) hit N828 billion.
Mobile transfers done in 2019 represented a 536% rise compared to N292 billion recorded in 2018.
The biggest mobile transfer recorded was done in December (N148.9 billion), compared to N26.8 billion in January 2019.
As the N50 stamp duties on transactions above N1000 and the N4 on bank transfers using USSD code remains a prominent issue in the Nigerian business arena, the Federal government had stopped the additional N50 charge currently being imposed on transactions carried out through Point of Sales (PoS) Terminal.
PoS transaction charges imposed by the Central Bank is to be borne by businesses. As such, passing it on consumers is counterproductive, burdensome and inconsistent with the underlying cashless policy of the Central Bank of Nigeria.