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<p>In July 2024, Point of Sale (PoS) transactions surged to an unprecedented ₦1.01 trillion, reflecting a growing shift towards cashless transactions in Nigeria. This is a significant increase from the ₦930.76 billion volume in June 2024 and ₦923.37 billion in July 2023.&nbsp;</p>
<p>The surge follows the spread of PoS terminal deployment across the country. According to <a href="https://www.statista.com/statistics/1173901/value-of-pos-transactions-in-nigeria/" target="_blank" rel="noopener noreferrer nofollow">Statista</a> the number of PoS payments increased significantly between 2015 and 2023.</p>
<p>By 2022, over 3.8 billion PoS transactions were registered in Nigeria. The year before, the volume reached around 2.7 billion, continuing the generally rising trend observed since 2018. PoS transactions in Nigeria were worth over ₦860 billion by 2023, registering an increase compared to the previous years reviewed.</p>
<p>As of July 2024, 4.06 million terminals were registered, with 3.05 million actively deployed. This represents a 24% year-on-year increase from the 2.30 million active terminals recorded in July 2023, illustrating Nigeria’s ongoing push towards digital financial inclusion.</p>
<p>It also signals a broader trend in Nigeria’s informal economy, where digital payment methods are increasingly adopted. According to a report by <a href="https://informalreport.moniepoint.com/" target="_blank" rel="noopener noreferrer nofollow">Moniepoint</a>, digital payments, including PoS, have doubled since the beginning of 2023, largely driven by the Central Bank of Nigeria’s cashless policy.&nbsp;</p>
<p>The informal sector, which accounts for a significant portion of Nigeria’s economic activity, is seeing more businesses transition from cash-based operations to electronic payments per the Moniepoint report. This shift not only supports transaction efficiency but also plays a critical role in enhancing financial inclusion in areas previously underserved by traditional banking services.</p>
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 <figure class="aligncenter size-full"><img fetchpriority="high" decoding="async" width="700" height="400" src="https://technext24.com/wp-content/uploads/2024/05/POS-Nigeria.png" alt="PoS Transactions" class="wp-image-231671">
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<p>Adopting PoS and other digital tools in the informal sector highlights a significant change in Nigeria’s economic landscape. The surge in PoS terminals and their growing use by small businesses—from market stalls to food vendors—is crucial for bringing informal businesses into the formal financial system.&nbsp;</p>
<p>Read also: <a href="https://technext24.com/2024/09/06/cac-registration-pos-operators-sue-govt/" target="_blank" rel="noopener noreferrer nofollow"><strong>CAC registration: PoS operators sue government as deadline ends yesterday</strong></a></p>
<h4 id="instant-payments-hit-%e2%82%a689-50-trillion" class="wp-block-heading">Instant payments hit ₦89.50 trillion</h4>
<p>Data from the Nigeria Inter-Bank Settlement Systems (NIBSS) shows that Nigerians spent an astounding ₦89.50 trillion in July 2024, up from ₦79.59 trillion in June and representing an 89% year-on-year increase from ₦47.39 trillion in July 2023.</p>
<p>This surge in spending aligns with the broader move towards a cashless economy. Also, the volume of instant payment transactions processed by NIBSS in July 2024 rose to 907 million, up 22% from the 743 million recorded in July 2023.</p>
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 <figure class="aligncenter size-full"><img decoding="async" width="900" height="500" src="https://technext24.com/wp-content/uploads/2022/07/B2B-and-mobile-payments-in-Africa.jpeg" alt="B2B payments in Africa slowed by high transaction cost, manual processes- Duplo Report" class="wp-image-147909">
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<p>Despite this progress, inflationary pressures remain a key driver of the increasing transaction volumes.&nbsp;</p>
<p>Kamsy Osakwe, Business Development Manager at RPG Group, points to rising fuel and food costs as major contributors to the higher transaction values.&nbsp;</p>
<p>“<em>We have had an overarching increment in fuel and food, and this trickles down to the cost of other goods and services,” he said. </em>While transaction values are increasing, Osakwe stresses that the volume of transactions is a more significant indicator of digital payment adoption.<em> </em>“<em>The volume of transactions helps everyone understand if the acceptability of digital financial services is increasing or not</em>,” she added.</p>
<h4 id="mobile-money-explodes" class="wp-block-heading">Mobile money explodes</h4>
<p>NIBSS’ report also highlights the explosive growth in Mobile Money Operations. It totalled at ₦6.23 trillion in July 2024. This is a ₦500 billion increase from the ₦5.68 trillion volume recorded in June. It also represents a 63% increase from the ₦3.82 trillion recorded in July 2023.</p>
<p>This reflects the growing acceptance of mobile money solutions, especially in regions where traditional banking infrastructure remains underdeveloped.&nbsp;</p>
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 <figure class="aligncenter size-full"><img decoding="async" width="750" height="354" src="https://technext24.com/wp-content/uploads/2020/03/Mobile-money-2.jpg" alt="Mobile money" class="wp-image-59285" srcset="https://technext24.com/wp-content/uploads/2020/03/Mobile-money-2.jpg 750w, https://technext24.com/wp-content/uploads/2020/03/Mobile-money-2-300x142.jpg 300w, https://technext24.com/wp-content/uploads/2020/03/Mobile-money-2-640x302.jpg 640w, https://technext24.com/wp-content/uploads/2020/03/Mobile-money-2-380x179.jpg 380w, https://technext24.com/wp-content/uploads/2020/03/Mobile-money-2-550x260.jpg 550w, https://technext24.com/wp-content/uploads/2020/03/Mobile-money-2-600x283.jpg 600w" sizes="(max-width: 750px) 100vw, 750px">
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<p>At this rate, it is safe to say that mobile money and PoS systems have become a crucial part of the informal economy’s gradual digitisation.</p>
<h4 id="qr-codes-may-be-phasing-out" class="wp-block-heading">QR codes may be phasing out&nbsp;</h4>
<p>However, other payment methods – QR codes – have seen a significant decline. NQR transactions fell to ₦51.69 billion in July 2024, down from ₦70.52 billion in July 2023, marking a 26.7% year-on-year decline.&nbsp;</p>
<p>Financial Advisor, <a href="https://www.linkedin.com/in/earnie?utm_source=share&amp;utm_campaign=share_via&amp;utm_content=profile&amp;utm_medium=android_app" target="_blank" rel="noopener noreferrer nofollow">Earnest Nnsi Ajadu</a>, attributes this to low awareness, limited merchant acceptance, and competition from more established digital payment methods like PoS and USSD codes.&nbsp;</p>
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 <figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="743" height="416" src="https://technext24.com/wp-content/uploads/2020/09/ghana-qr-code.jpg" alt="" class="wp-image-91436" srcset="https://technext24.com/wp-content/uploads/2020/09/ghana-qr-code.jpg 743w, https://technext24.com/wp-content/uploads/2020/09/ghana-qr-code-300x168.jpg 300w, https://technext24.com/wp-content/uploads/2020/09/ghana-qr-code-640x358.jpg 640w, https://technext24.com/wp-content/uploads/2020/09/ghana-qr-code-360x202.jpg 360w" sizes="(max-width: 743px) 100vw, 743px">
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<p>Ajadu also points out that, despite the challenges facing specific platforms like NQR, the broader digital financial ecosystem is expanding, with financial inclusion rising from 56% in 2020 to 64% in 2023, according to EFInA.</p>
<p>Another digital payment platform, eBillsPay, saw steady growth, with transactions reaching ₦238.62 billion in July 2024, a 74% year-on-year increase from ₦136.67 billion in July 2023. This growth highlights the rising adoption of automated bill payments for services ranging from utilities to education.</p>
<p>The post <a href="https://technext24.com/2024/09/28/pos-transactions-in-nigeria/" rel="noopener noreferrer nofollow">PoS transactions in Nigeria hit the N1 trillion mark in July, as online transactions grow by 89% YoY</a> first appeared on <a href="https://technext24.com" rel="noopener noreferrer nofollow">Technext</a>.</p>

PoS transactions in Nigeria hit the N1 trillion mark in July, as online transactions grow by 89% YoY

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