Banks and Fintechs in Fierce Battle Over PoS Market Share as Nigeria’s Digital Payments Soar

Nigeria’s financial landscape is undergoing a significant transformation, with Point of Sale (PoS) transactions reaching an unprecedented ₦18 trillion in 2024, marking a 69% increase from ₦10.7 trillion in 2023, according to data from the Nigeria Inter-Bank Settlement System (NIBSS) . This surge underscores the intensifying competition between traditional banks and fintech companies vying for dominance in the rapidly expanding PoS market.

Fintechs Drive PoS Expansion

Fintech firms have been at the forefront of PoS terminal deployment, capitalizing on the demand for accessible financial services. In 2024, the number of deployed PoS terminals more than doubled to 5.5 million from 2.4 million in 2023, representing a 129% increase . PalmPay, for instance, has onboarded over 700,000 agents, while Moniepoint has deployed more than 800,000 PoS terminals nationwide. OPay also reports having over 500,000 PoS agents across the country .

Banks Respond to Growing Competition

Traditional banks are responding to the fintech challenge by enhancing their digital offerings and expanding their PoS networks. However, the agility and rapid deployment capabilities of fintechs have given them a competitive edge, especially in underserved and rural areas where banking infrastructure is limited.

Cash Scarcity Accelerates Digital Adoption

Persistent cash shortages at ATMs have further propelled the adoption of PoS transactions. Many Nigerians now rely on PoS agents for both payments and cash withdrawals, with agents often located near ATMs to provide services when machines are out of service . This shift has not only increased convenience for consumers but also created income opportunities for PoS operators.

Economic Implications and Future Outlook

The rise in PoS transactions contributes to government revenue through the Electronic Money Transfer Levy (EMTL) on transactions above ₦10,000 . As digital payment adoption continues to grow, stakeholders anticipate further innovations and collaborations between banks and fintechs to enhance financial inclusion and service delivery across Nigeria.