A recent report by the Central Bank of Nigeria (CBN) has revealed a remarkable shift in Nigerians’ payment habits, as Point-of-Sale (PoS) transactions now overshadow Automated Teller Machine (ATM) usage.
Persistent cash shortages at ATMs and long wait times for withdrawals have driven this trend, pushing more Nigerians toward electronic payment options.
PoS Transactions Dominate Payment Landscape
According to the CBN’s quarterly statistical bulletin for 2024, Nigerians conducted transactions worth N85.91 trillion via PoS terminals in the first half of the year, compared to N12.21 trillion on ATMs during the same period.
This marks a massive 603% surge in PoS usage.
PoS transactions rose by 77% in value, up from N48.44 trillion in 2023, reflecting a growing preference for digital payments. Meanwhile, ATM transactions saw a 16.6% decline, dropping from N14.63 trillion in 2023 to N12.21 trillion in 2024.
Why Are Nigerians Turning to PoS?
The shift toward PoS terminals can be attributed to several factors:
Persistent cash shortages at ATMs.
Long queues and wait times for withdrawals.
Rising awareness and adoption of electronic payment systems.
In 2023, as cash scarcity peaked, PoS transactions surged by 205% in value compared to 2022. The volume of transactions also grew by 185%, underscoring the rapid adoption of this payment method.
Growth of Digital Payment Systems
Alongside PoS transactions, internet banking and mobile payment platforms have also experienced substantial growth.
Internet banking transaction values more than doubled, rising from N462.17 billion in 2023 to N825.5 billion in 2024.
Mobile payment platforms saw a 64% increase in transaction value, jumping from N97.06 billion to N159.42 billion.
This rapid adoption of digital payments is driven by increased smartphone accessibility and the expansion of mobile banking services across Nigeria.
Challenges and the Road Ahead
Despite this digital revolution, challenges persist. PoS operators have reported a 100% hike in charges, and ATM shortages remain a significant concern. In response, the CBN fined nine banks a total of N1.35 billion for failing to provide sufficient cash at ATMs during the festive season.
The Corporate Affairs Commission (CAC) has also mandated PoS operators to register their businesses, ensuring compliance with legal and regulatory frameworks.
A Changing Banking Landscape
As Nigeria continues to embrace digital banking, the reliance on PoS terminals and mobile payments is expected to grow.
This shift is not just reshaping the country’s payment ecosystem but also highlighting the urgent need for banks to address cash distribution challenges.
By empowering Nigerians with accessible and reliable digital payment solutions, the nation is taking a significant step toward financial inclusion and modernization.
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