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2017 was a record year for the use of PoS in Nigeria

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2017 was a record year for the use of PoS in Nigeria

The Nigeria Inter-Bank Settlement System (NIBSS) has said in a new report that there was a 54.3 per cent increase in the use of Point of Sale (PoS) transactions in Nigeria between 2016 and 2017. This represented a value of N1.41 trillion compared to the N0.76 trillion recorded in 2016. In terms of volume of PoS transactions, the NIBSS put the figure at 146.27 million.

It confirmed that the volume of transactions recorded a 92 per cent compound annual growth rate between 2014 and 2017. This was driven mostly by brick and mortar stores in the wholesale and retail sector.

Previous Records

– N0.76tn in value was recorded in 2016, with 63.72 million volume of transactions.

– N0.45tn was recorded in 2015, with 33.72 million volume of transactions.

– N0.31tn was recorded in 2014, with 20.82 million volume of transactions.

– The values for 2012 and 2013 were not stated but the volume of transactions for the two years were 2.59 million and 9.42 million respectively.

Cards Used

0.63 million unique cards were used to achieve these transactions in 2017. This represented a 14 per cent increase when compared to 2016, with MasterCard dominating with 62.6 per cent, while Verve and Visa had 21.2 per cent and 16.2 per cent, respectively.

In real figures, below is the volume of transactions recorded with each type of card:

– MasterCard: 91,111,368.

-Verve: 30,915,106.

– Visa: 23,550.124.

According to the NIBSS, “verve cards gained market share over the other major players in 2017, making up 21 per cent of total transaction volume in 2017. Visa volumes remained flat at 16 per cent, while MasterCard dropped to 63 per cent from 66 per cent in 2016.”

Leading PoS transactions by merchant category in 2017

– 39.56 million transactions on retail merchants;

– 28.73 million for wholesale merchants;

– 17.63 million for fast food restaurants;

– 15.23 million for fuel stations;

– 7.01 million for hotels;

– 3.22 million for pharmacies;

– 3.01 million for telecoms;

– 2.01 million for hospitals; and

– 1.19 million for financial institutions.

Also, the adoption of PoS by fuel stations has seen a significant rise over the last two years, making the volume of transactions in 2017 attain 10 per cent of total transactions as compared to 5 per cent in 2016.

Registered/Connected/Active PoS terminals in 2017

There were 182,800 registered PoS terminals in 2017, with 155,600 connected and 105,100 active.

States with highest PoS transaction

The commercial hub of Nigeria, Lagos, led its peers across the federation in PoS transactions in 2017, as it had 68 per cent of total transactions. Rivers state followed with 6 per cent, Abuja with 4 per cent, with Ogun and Delta recording 3 per cent respectively.

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