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Since its advent, and coupled with the covid-19 pandemic outbreak, the POS terminal business has rapidly grown and is still growing. Many Nigerians are beginning to embrace the POS business as there is hardly a street without one POS terminal point. Among other forms of carrying out e-payments in Nigeria: using credit/debit cards, online portals, Automated Teller Machines (ATMs), direct debit/deposit, and Real Time Gross Settlement (RTGS), Point of Sales (POS) terminal is currently ranking. According to a report by the Nigerian Inter-Bank Settlement Scheme (NIBSS), stats that as of 2018, the number of functional POS terminals in Nigeria was about 164,607 which has contributed to the rise of about 66.6% in the transaction through POS across the nation. This fosters the cashless and financial inclusion policy of Nigerian society. But as we know, every business has its pros and cons or problems and prospects, these two sides of the POS business in Nigeria are what this article sets to highlight and addresses in a jiffy.
The Problems Of The POS Business In NigeriaBeyond the ease, this business model brings to the nation’s population and the entrepreneurial opportunities it has created are some of the challenges facing the business.
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- Network Issues/Failure: this is one of the biggest challenges facing the POS business in Nigeria. There is always a network failure from network providers, from the operators’ end, or the bank of the customers, and this has led to failed transactions.
- Failed Transactions and Delay in the Reversal of Money: this is a challenge birthed by network issues and irregularities. Sometimes a transaction would fail, the customer would be debited and there will not be an immediate reversal of money. This experience feeds on the patience of the operators and customers.
- Security Challenges/Fraudulent Machine: POS machines can be comprised and the customers’ card details would be exposed to danger.
- High Charges/High Costs of POS Machine: before now, carrying out transactions with POS machines were way cheaper than using the ATMs or the traditional banking system, you could withdraw N5,000 with as low a charge as N50, but recent, withdrawing N1000 using a POS machine costs N100. Again, the cost of purchasing POS machines is on the high side.
The Prospects Of POS Business In NigeriaNo business is outrightly on the negative side, if it is all negative, it would be a business. beyond the problems facing the POS business in Nigeria, which can be fixed by the appropriate bodies/authorities, are what makes the business worthwhile, and as such, the future is bright as far as the Nigerian economy is concerned.
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- Fast Withdrawal: Nigerians are not quite patient, so the POS business works for many. Instead of queuing up in ATM galleries and points, people quickly make do with the POS terminal. There is not much crowd associated with making transactions with POS terminals.
- Insufficient Funds: you can withdraw as low as N500 using POS terminals. This works for students who are always running out of cash.
- It Supports a Cashless Society: with the use of POS in shops, mini-marts, supermarkets, and elsewhere, people no longer carry a large amount of money in their wallets or bags.
- It Creates Entrepreneurial Opportunities: the introduction of the POS into the Nigerian economy has created jobs for some youths and also second streams of income for working-class people. And this has also contributed to the internal revenue of the nation.
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