The Nigeria Inter-Bank Settlement System (NIBSS) has disclosed that Points of Sales (POS) transactions increased to N1.41 trillion in 2017 as more retail Merchants embraced POS as a means of transactions.
The report by NIBSS on POS transactions released on Monday, disclosed that POS transactions in 2016 was N0.76 trillion, while in 2015, it increased to N0.45 trillion from N0.31 trillion in 2014.
Between 2012 and 2017, the report by NIBSS disclosed that N0.16 trillion and N0.04 trillion value of POS transactions respectively.
According to NIBSS, “Transactions on POS was impressive in 2017 setting a milestone of over N1 trillion in value in 2017. Furthermore, volume of transactions recorded a 92 per cent CAGR between 2014 and 2017. Volume of transactions were driven mostly by brick and mortar stores ‘in the wholesale and retail sector.”
NIBSS reported 146.27 million volume of POS transactions in 2017 from 63.72 million in 2016.
Volume of transactions on POS transactions was 33.72 million in 2015; 20.82 million in 2014; 9.42 million in 2013 and 2.59 million in 2012.
NIBSS disclosed that 0.63 million unique cards carried out POS transactions in 2017. A 14 per cent increase when compared to 2016 with Mastercard dominating 62.6 per cent, while Verve and Visa had 21.2 per cent and 16.2 per cent respectively.
Mastercard recorded 91,111,368; Verve 30,915,106 and Visa, 23,550.124.
NIBSS stated that “POS adoption by Fuel station has seen a significant rise over the last two years. Volume of transactions in 2017 was 10 per cent of total transactions as compared to five per cent in 2016.
“The most common failure reason for POS transactions was insufficient Funds that contributed 40 per cent to the total failed transactions.
“Verve cards gained market share over its major players in 2017 making up 21 per cent of total 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.”
Top 10 leading POS transaction by Merchant category in 2017 transactions were 39.56 million transactions on Retail Merchants; 28.73 million, Wholesale Merchants; Fast Food Restaurant, 17.63 million; Fuel Station, 15.23 million; Hotels, 7.01 million and Pharmacies, 3.22 million.
Others are 3.01million telecoms; Hospitals, 2.01 million and financial institutions, 1.19 million.
NIBSS stated that registered POS terminal closed 2017 at 182,800, while Connected and Active POS terminal last year was 155,600 and 105,100 respectively.
By location, Lagos state leads, other states across the federation in POS transaction in 2017.
The report stated that Lagos in 2017 had 68 per cent of POS transactions, followed by Rivers state with six per cent and Abuja with four per cent of POS transactions.
Furthermore, Ogun and Delta recorded three per cent of POS transactions respectively.
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