Nigeria Interbank Settlement System (NIBSS) reported a N572 trillion cashless boom due to an increase in electronic instant transfers in the country, resulting in a decline in point of sale (POS) transactions.
On Thursday, 26th of August, 2024, NIBSS revealed that electronic instant transfer has increased by 84.37 percent to the N572.63 trillion reported in the first seven months of 2024.
In 2023, NIBSS reported that cashless payments had risen by 55 percent to N600 trillion cashless transactions from N387 trillion in 2022.
The statistics were based on NIBSS cashless transactions tracking across instant payments and PoS channels which recorded N10.73 trillion as the total value of point of sale (PoS) transactions for 2023, compared to N8.39 trillion recorded in 2022.
It was also reported that a 58 percent increase in smartphone penetration in urban areas as of 2022 made mobile applications the preferred method for conducting transactions, driving online transfers, and relegating ATM transactions and PoS usage.
“Everyone accepts transfers now, even people that sell in traffic,” said Temiloluwa Lawal, a tech expert.
“Even Keke drivers are accepting transfers,” Daniel Ishie, a mobile money agent, added.
Although, PoS transactions, had been a leading force when the Central Bank of Nigeria (CBN) introduced its Naira redesign policy and withdrawal limits in 2022. Yet, there was an 8.19 percent decline to N6.23 trillion over the same period.
However, as of July 2024, there is an 802.93 percent to 4.06 million increase in the number of registered PoS terminals from 449,998 in January 2020.
According to the 2024 Nigerian Payments Report, “POS transactions play a pivotal role in providing enhanced convenience, speed, and security, contributing to the ongoing transformative shift towards heightened adoption of cashless transactions in Nigeria.”
“It is evident that the tremendous growth of Mobile App Transfers, Online Transfers, MMOs, and the NIP together paint a clear picture that Nigeria’s payment system is becoming much more cashless and much more dependent,” Zone remarked.