Point of Sale (PoS) terminals registered and deployed have declined by 6,490 or 4.8 percent, due to the recent neglect by merchants in the country as a result of excess charges imposed by the operators, investigations has revealed.
It would be recalled that the Central Bank of Nigeria (CBN) introduced the PoS system in 2012 to further drive home its cashless policy aimed at enhancing Nigeria’s payment system.
The initiative, which has recorded remarkable success since its introduction rose in total value of transactions to N99.6 billion, while the deployment of PoS terminals rose from 5,000 to 153,167 by 2014. It further rose to 142,814 in June 2016 but dropped by over 6000 terminals to stand at 136,324 by November, 2016.
A merchant who simply identified herself as Mrs. Juliet told our correspondent that she and many other shop owners in Computer Village, Ikeja, Lagos had stopped using PoS for payments of goods purchased by her customers in the last few months due to the excess charges by the operating banks and regulatory body.
Mrs. Juliet, a dealer in computers and accessories, at the weekend explained further that the CBN must intervene if they really want to actualize cashless economy and reduce to the barest minimum physical cash in the circulation.
“I have come to realize that when you use the terminal, the buyer of the goods will be charged with certain amount of money and likewise me, the seller of the product will also be charged, this is not good,” she lamented.
“Therefore, I prefer customers paying for whatever they buy with physical cash or better still do transfer to me and would not be charged, even though such buyer would be charged for using the service.”
Commenting on the declining deployment of the payment terminals, Chief Executive Officer, Electronic Payment Providers Association of Nigeria (E-PPAN), Mrs. Regha Onajite, who reacted to the development on phone, said there was a need for merchants to be encouraged towards registering and deploying more PoS terminals in order for the country to achieve a truly cashless economy.
However, latest figures show that as at June 2016, the country recorded its highest PoS terminals of 142, 81, but began to fall gradual month on month to the November figure.
In July, it stood at 141,474 but slid to141,267 in August, while in September, October and November, registered PoS terminals by merchants stood at 140,281; 136,597 and 136,324, respectively.
Meanwhile, the value of PoS transaction hit an all-time high of N81 billion in November last year. Already, analysts say the figure suggested that more Nigerians continue to have increased confidence in the cashless policy, which brings flexibility and confidence to banking public, especially when making purchases.
According to the details of the 2016 PoS transaction, transactions values stood at N46.65 billion, N46.14 billion, N51.96 billion and N53.28 billion in January, February, March and April, last year.