This growth results from the increasing reliance on PoS for both payments and cash withdrawals, driven by persistent cash shortages and the rapid expansion of fintech-powered PoS networks.

In terms of transaction volume, there was an 8% year-on-year increase, with 1.5 billion PoS transactions recorded in 2024 compared to 1.4 billion the previous year. The expansion of PoS terminals also surged, as deployments more than doubled to 5.5 million from 2.4 million in 2023—a 129% jump. 

Meanwhile, the number of registered PoS terminals rose from 3.5 million in December 2023 to 7.8 million by the end of 2024. However, over 2 million registered devices are yet to be deployed, revealing untapped prospects for further expansion.

The Rise of PoS: Fintechs Driving Financial Inclusion

Historically, commercial banks outshined PoS terminal deployment, but fintech companies have taken the lead in recent years. The demand for alternative payment solutions skyrocketed due to cash shortages at ATMs and long bank queues, making PoS transactions a convenient choice for millions of Nigerians.

Financial analyst Adewale Adeoye explained the shift, stating, “The rapid growth of PoS is not just an avenue for payment but also withdrawals have filled a gap for many Nigerians who struggle to access cash through banking channels such as ATM or teller withdrawals. It has also helped in bringing banking services closer to the rural areas, which do not have as many banks accessible to them.”

Fintech Firms Expanding PoS Networks

Leading fintech companies continue to push PoS adoption across the country. PalmPay, for example, has onboarded over 700,000 agents and is expanding its reach to all 774 local government areas in Nigeria. “This mission has fueled our efforts in deploying more PoS terminals across the country,” said Femi Hanson, head of Marketing and Communications at PalmPay.

Similarly, Moniepoint disclosed that it has deployed over 800,000 PoS terminals nationwide and is working on introducing an advanced PoS machine that integrates payment processing, inventory management, and transaction reconciliation. OPay, another major player in the sector, reported having over 500,000 PoS agents across the country.

Beyond convenience, the growth of PoS transactions has economic implications. Increased transactions contribute to government revenue through the Electronic Money Transfer Levy (EMTL), which applies to transactions of N10,000 and above. PoS businesses have also become a source of income for many Nigerians, particularly in rural areas where banking services remain limited.

However, there are still issues about rising PoS charges. With limited cash availability at bank ATMs, many Nigerians have no choice but to rely on PoS agents, who have increased transaction fees. In some parts of Lagos, withdrawing N5,000 now attracts a fee of N500—far higher than the N100 or N200 charged a few months ago.

PoS operators justify the higher charges, pointing to the increasing difficulty in sourcing cash, often purchasing it from alternative sources like petrol stations due to bank limitations.

Electronic Payments Reach Historic High

In a related development, electronic transactions in Nigeria surged to N1.07 quadrillion in 2024, surpassing the quadrillion mark for the first time. This represents a 79.6% increase from the N600 trillion recorded in 2023, according to NIBSS data. 

The NIBSS Instant Payment (NIP) system, which facilitates real-time interbank transfers, remains the dominant electronic payment method, processing transactions across mobile apps, USSD, internet banking, PoS terminals, and ATMs.

FCMB offers a diverse range of financial services, including retail banking, corporate banking, and investment banking.

With a strong presence across Nigeria, FCMB is dedicated to enhancing financial inclusion and improving customer experiences through digital transformation.

The Challenge

FCMB faced the challenge of adapting to the rapidly evolving digital landscape in Africa. Despite significant digital adoption, nearly half of Africa’s population remains unbanked, and with 75% of web traffic occurring on mobile phones, FCMB needed to provide mobile-first financial services to meet customer expectations and drive financial inclusion.

The key challenges included, simplifying transactions, and building customer trust, engaging with customers on their preferred communication channels, ensuring robust security and compliance and reducing operational costs while enhancing customer satisfaction.

The Solution

FCMB partnered with Infobip to implement a comprehensive conversational banking strategy. By leveraging Infobip’s omnichannel platform, FCMB integrated multiple communication channels through Infobip’s propriety solutions – Answers, Moments and Conversations.

This enables them to engage with customers through channels like WhatsApp Business and SMS. Thanks to Infobip, FCMB can offer a wide range of services through its customers’ preferred messaging apps, providing seamless, personalised interactions throughout the entire financial journey.

Customers can now easily open new accounts, check balances, transfer money, change passwords, and add users through their preferred messaging apps.

FCMB sends tailored offers directly to customers, enhancing personalisation and engagement. The platform also simplifies the loan application process.

For example, applicants can now upload documents online, complete the application quickly, and receive instant feedback on their loan status, making it more straightforward and less stressful. For more complex queries, customers can seamlessly transition to human agents, ensuring continuity and a personalised experience.

To address security and compliance concerns, FCMB implemented several advanced measures. These include Two-Factor Authentication (2FA), which adds an extra layer of security by requiring both an online password and a mobile phone for verification.

They also use SIM Swap Check to ensure that account-related information reaches the intended recipient, reducing fraud risk.

Additionally, Silent Mobile Verification provides a seamless onboarding experience by authenticating users within seconds without requiring human input.

The Result

By integrating Infobip’s conversational platform, FCMB achieved significant improvements in customer experience and operational efficiency.

FCMB was able to provide an enhanced customer experience with seamless, personalised interactions across multiple channels, leading to higher customer satisfaction and loyalty.

Efficiency increased as AI-supported chatbots handled frequently asked questions, allowing human agents to focus on more complex inquiries and improving resolution times.

“We are thrilled to see FCMB leveraging our conversational platform to enhance their customer experience. Our goal is to provide the technology and support that enables innovative banks like FCMB to offer seamless, personalised banking experiences,” said Olatayo L-Ajai regional manager West Africa at Infobip.

“Working with Infobip enabled us to shift from fragmented services to ‘superhubs’—by integrating platforms and combining banking, insurance, fintech, and innovative services to make every interaction feel personal and valued,” explained Oluwole Coker, head of Mobile and Internet Banking at FCMB.

eNaira is a central bank digital currency issued and regulated by the Central Bank of Nigeria. It serves as both a medium of exchange and a store of value and claims to offer better payment prospects in retail transactions when compared to cash

Osita Nwanisobi, Director of Corporate Communications at CBN, stated at the recently concluded 44th Kaduna International Trade Fair that the Nigerian payment system infrastructure could handle the surge in transaction volumes across all payment channels.

Following the implementation of the naira redesign policy, citizens have struggled to obtain naira notes from banking halls and automated teller machines (ATMs), according to the CBN Director.

Mohammed Abbah, CBN’s Director of capacity development, represented Nwasinobi at the event.

On the naira redesign policy, he said the initiative was not aimed at any individual, as was insinuated in the public domain.

“The CBN Governor, Mr. Godwin Emefiele, has always said that the policy is not targeted at anyone or any group of persons, rather, it is derived from the bank’s in-house analysis to strengthen our macroeconomic fundamentals and better our socio-economic conditions,” Nwanisobi said.

“The principal aim of the bank, with the currency redesign initiative, is to make our monetary policy decisions more efficacious.
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“Nigerians will observe that there has been a downward trend in inflation, and the exchange rates have been relatively stable.”

“Furthermore, we aim to increase financial inclusion in the country by reducing the number of unbanked people.”

“Thirdly, we aim to support the efforts of our security agencies in combating banditry and ransom-taking in Nigeria through this program.”

The CBN director said the apex bank was aware of the challenges some citizens have had to face in the past few weeks in efforts to get money from their banks.

He said that there have been reports of occasional transaction failures on alternative payment channels.

“However, we wish to assure you that the Nigerian payment system infrastructure is robust enough to handle the surging transaction volumes across all channels,” Nwanisobi said.

“We, therefore, urge Nigerians to embrace alternative payment channels, such as e-Naira and internet banking, as we embrace the cashless policy.”