In the first half of 2024, transactions in Nigeria through point-of-sale terminals amounted to N85.91tn, significantly surpassing the N12.21tn recorded for ATM transactions during the same period. This data, sourced from the Central Bank of Nigeria, indicates a notable shift in consumer behavior towards POS as the preferred payment method, attributed to the convenience of cashless transactions and ongoing challenges with ATM cash availability and long queues.
Comparing the figures to the previous year, the value of POS transactions increased by 77%, reaching N85.91tn from N48.44tn, with transaction volume growing by 31% from 4.87 billion to 6.39 billion. This growth can be linked to the widespread availability of POS terminals and their ease of use for cashless transactions nationwide.
In contrast, ATM transactions saw a decline in value from N14.63tn in 2023 to N12.21tn in 2024, a 16.6% decrease, while transaction volume also slightly dropped from 519.52 million to 496.43 million. The data suggests a shift away from physical cash withdrawals towards electronic payment methods.
Furthermore, internet banking transactions doubled in value from N462.17bn to N825.5bn in 2024, with a slight increase in transaction volume. Mobile payment platforms also experienced growth, with transaction value rising from N97.06bn to N159.42bn, and transaction volume increasing by 50%.
However, cheque transactions continued to decline, reflecting a reduced reliance on traditional banking methods. The data underscores the rapid digitalization of Nigeria’s payment systems, with POS, mobile payments, and internet banking at the forefront of this transformation.
Despite the surge in POS transactions, concerns have been raised about rising cases of fraud within the system. The CBN has introduced measures to address this, including setting daily transaction limits for POS agents and customers to enhance the cashless policy and combat fraud. Compliance with these measures is monitored closely, with penalties for any breaches to ensure the integrity of the system.