Top POS Operators Battle for Market Dominance in Lagos

Lagos, Nigeria’s commercial heartbeat, is a city of constant transactions—from the gadget frenzy of Computer Village to the bustling food trade in Mile 12. At the core of this activity are Point of Sale (POS) systems, powering Nigeria’s transition to a cashless economy.

Across five major Lagos markets—Computer Village, Mile 12, Ikorodu Garage, Oshodi, and Ojuelegba—reveals clear leaders: Moniepoint, Opay, and PalmPay. Moniepoint leads in four of the five locations, with Opay narrowly taking the top spot in Ojuelegba.

Here’s a breakdown of what’s driving POS choices in Lagos, and what it means for the future of fintech in Africa’s most dynamic city.

Computer Village: Moniepoint Wins on Cost

In the tech epicenter of Nigeria, Moniepoint dominates with 53% of agents choosing its platform. Opay (27%) and PalmPay (20%) trail behind.

• Why merchants prefer it: Low transaction charges, reliability, and speed.

• Transaction range: ₦20,000 – ₦500,000, reflecting high-value electronics sales.

A laptop seller processing frequent big-ticket payments can save thousands monthly just by choosing Moniepoint’s lower fees.

However, network disruptions and occasional fraud are concerns across all brands.

Mile 12: Speed Matters in Food Markets

In this high-pressure market for perishables, Moniepoint again leads with 50% of the vote. Opay takes 30%, and PalmPay follows with 20%.

• Top factor: Speed of transactions, cited by 8 respondents.

• Transaction range: ₦5,000 – ₦95,000.

A tomato trader can’t afford downtime. Fast POS processing means more sales, less spoilage. That’s where Moniepoint has the edge.

Still, agents report low withdrawal limits and network hiccups across all brands.

Ikorodu Garage: Moniepoint Commands the Commute

Serving both commuters and vendors, Ikorodu Garage sees Moniepoint grab a whopping 73% market share. PalmPay trails at 17%, and Opay comes in at 10%.

• Why it leads: Reliable uptime, fast transactions, and accessible agent network.

• Transaction range: ₦5,000 – ₦20,000, typical for transport and quick trades.

For bus operators or small merchants, Moniepoint’s reliability is key. However, intense competition, fraud, and tech issues remain pain points.

Oshodi: Fast-Paced Trade Needs Fast POS

In one of Lagos’ busiest commercial zones, Moniepoint maintains its lead with 67%. Both Opay and PalmPay follow equally at 17%.

• Driving factor: Speed is king, with traders citing quick payments as essential.

• Transaction range: ₦5,000 – ₦20,000.

For a clothing vendor in rush hour, a delay means lost customers. Moniepoint’s widespread network ensures traders can keep up with the pace.

Yet, charges and system glitches still plague daily operations for all POS users.

Ojuelegba: Opay Breaks the Moniepoint Monopoly

In a surprising twist, Opay takes the lead in Ojuelegba with 50%, followed by Moniepoint at 35% and PalmPay at 15%.

• Preferences split: Speed (4 votes), low charges (3), and reliability (3).

• Transaction range: ₦10,000 – ₦50,000.

This diverse market doesn’t favor a single brand, suggesting intense competition and varied merchant needs. A food vendor may prefer Opay’s speed, while a retailer might opt for Moniepoint’s cost savings.

POS Preference by Market (Survey Data)

Source: Technext survey of 150 agents (30 per market)

What This Means for Lagos Fintech

Moniepoint’s dominance is no accident. Its low fees, reliable service, and speed cater directly to Lagos’ transaction-heavy markets. Yet Opay’s foothold in Ojuelegba shows that brand loyalty is fluid, and opportunities remain for challengers.

Challenges facing all operators include:

• Network instability

• Fraud risk

• Competitive saturation

• Agent commission concerns

For fintech players, this landscape offers both warning and opportunity. The race for dominance will hinge on improving agent support, maintaining infrastructure, and tailoring services to diverse market segments.

Final Takeaway

From Computer Village to Ojuelegba, Lagos’ POS ecosystem is a fintech battleground. Moniepoint is winning most fronts—but not all. For merchants and customers alike, speed, cost, and reliability remain the currencies of trust.

As Nigeria’s digital economy grows, the competition will only intensify. And for now, Moniepoint holds the lead—but the game is far from over.

A Technext survey