Introduction

“Moniepoint don finish this market, Dayo. I am shutting down my agency banking division. Na just Opex dey there, I no see business. In fact, I need a foreign investor or startup to take it out of my hands before the end of the year. Plus, the recent CBN circular capping cash withdrawals at ₦100,000, you better focus on merchant payment collections. It has a higher margin sef.”

Ha! I exclaimed in response as I listened to a mentor over a cup of tea around Ikoyi. I was in Lagos in April to pitch our payment terminal solutions to few commercial banks, so I took some time out to meet my mentor who is an industry veteran with an active fintech in Nigeria with more licenses than we do.

But how did we get here? This POS agent turned pure water situation that we now find ourselves in.

Where there is so many POS agents that it would be considerable if the Central Bank of Nigeria stop issuing the license citing market saturation.

Where it is not unthinkable to cease customer acquisition for the business. Where getting a super-agent license is almost laughable.

To understand this situation or even chart a way forward for what agency banking could and should look like going forward, we need to understand where it’s coming from.

You see before POS Agents were ATMs. Yes, ATMs. ATMs that have now become building props; analogue jewelry serving as mere objects of decor to the bank’s building than as the store box of financial transactions they used to be.

Sometime in 2012, I got invited to a conference by Keystone Bank as one of their banking partners. This was thirteen years ago when I started my foray into the Nigerian Banking/Fintech space after taking over my father’s real estate business; one of the divisions of the business focused on finding high traffic and secured pedestrian locations where ATMs can be installed for commercial banks.

“We need 120,000 ATMs nationwide to serve the cash needs of Nigerians”. Seventeen-year-old me listened attentively to a representative of the CBN as he gave a lecture on Why banks need to improve their ATM Spread and Service Availability.

Around this time, a lot of the fast payment services we are now accustomed to were still at a nascent stage. In fact, few Banks could boast of internet banking or the quick mobile banking capabilities that are now synonymous with financial service delivery in Nigeria.

Today, the extent to which ATMs serve our cash needs is almost non-existent and the well-dreaded long ATM queues are now memories of a past replaced by POS Agents on every roadside peddling cash to Nigerians to care for it or should I say who can afford it.

Earlier this year (2025), banks borrowed over ₦8.2 trillion from the CBN in just 17 days to address cash shortages. Yet, the cash scarcity persisted. Customers, frustrated by long queues and empty ATMs, turned into a more accessible alternative: PoS agents.

If we needed 100,000 ATMs to serve Nigerian Cash Needs in 2012, surely over two million POS Agents peddling cash on the streets would be enough. I digress. Back to the topic at hand. A little trip down memory lane.

Agency Banking in the Beginning – A Vision for financial Inclusion

My AI Copilot tells me Agency Banking kicked off in 2013 with the first set of entrants such as Interswitch, Paga, and First Bank’s FirstMonie.

During this epoch (2013-2020), agency banking was strictly the purview of cybercafes – oh cybercafes – and business centers – primarily hubs for servicing document needs such as typing, printing, laminating, and photocopying – became the unlikely pioneers of Nigeria’s agency banking revolution.

These centers, somewhat trusted fixtures in their communities, were well-positioned to take on the additional role of financial service providers. And it made sense. With their existing infrastructure – computers, internet access, and a steady stream of foot traffic – they seamlessly integrated agency banking into their operations.

I recall multiple instances back at the University of Ilorin where I was faced with the difficult choice of trading N100 Paga Charge at the cybercafe or taking a N30 Taxi to face GTBank’s fluctuating ATMs at Tanke Junction.

According to Regulatory Framework for Agency Banking in Nigeria. The following entities are eligible for appointment as agents: Limited liability companies, sole proprietorships, Partnerships, Cooperative Societies, public entities, educational institutions, Trusts and any other entity which the CBN may prescribe.

If you asked anyone who cares, what the primary purpose of AGENCY BANKING Framework is in Nigeria? They’d say Financial Inclusion.

What is financial inclusion? Simply put, access to financial services.

But to what extent do agents provide access to financial services?

Do Agents provide access to financial services or access to cash? This brings us to where we are now.

Agency Banking as it is today – The New Pure Water Business

Originally intended to serve rural and underserved areas, these agents, often operating from roadside kiosks, shops, under umbrellas, or with as little as a table have now become the primary cash distributors in both urban and rural Nigeria.

With over 2.7 million PoS terminals compared to fewer than 21,500 ATMs nationwide, the imbalance is stark.

But for many Nigerians including myself, the convenience outweighs the cost. Unlike ATMs, PoS agents are everywhere, and they rarely run out of cash. Even for banks, the investment cost of a POS terminal is preferable to that of an ATM.

This shift has birthed a parallel cash economy. Some agents source cash through informal means—withdrawing large sums from ATMs meant for the public or buying cash from cash heavy businesses like fuel stations in exchange for digital transfers. This has created a shadow market where cash is a commodity, and access depends on who you know and how much you’re willing to pay. It is now common to find any shop offering PoS agent services.

The result? A system where cash is no longer free, and the poorest often pay the highest price.

So, the CBN responded with a mix of penalties and policy reforms. Most recent is the circular limiting cash withdrawal per day to N100,000, compulsory registration of PoS agents as businesses, and mandatory transaction routing through the right channel. At PayZeep, we have compliance checks in place for clients who rely on our agency’s banking APIs and white label PoS and mobile applications.

So, What’s next?

The future of agency banking – Giving the Agents Agency

As I think about the future of our agency banking business, one thing is clear: the future of banking in Nigeria will not be defined by marble halls or steel machines. It will be shaped by the people—by agents who bring financial services to the doorsteps of millions. But for this future to be sustainable, agency banking must evolve beyond the informal, cash-peddling model it has become.

How can we do this?

Understand that the Market Is Not Saturated—The Cities Are

Contrary to popular belief, the agency banking market is far from saturated. What’s saturated with are the cities. Rural and peri-urban areas remain underserved, and that’s where the next wave of growth lies. By strategically expanding into these regions, we can unlock new customer segments and deepen financial inclusion.

Expanding the Offerings and Looking the Part

The current landscape is dominated by makeshift setups, agents operating under umbrellas or in roadside stalls. While functional, these setups lack permanence, security, and professionalism. The next phase must prioritize structure and dignity and this role falls on the financial institutions.

Let’s eliminate the umbrellas and stick with the kiosks. Agency banking must move beyond cash-in/cash-out.

These agents can become low-cost real estate for selling a wide range of financial products and services:

Account Opening: Empowering Agents with Open Banking Tools

Super Agents can now leverage SANEF APIs to onboard customers directly at agent locations. These APIs allow agents to:

• Create Tier 1 and Tier 2 accounts instantly for individuals.
• Capture KYC data and submit it securely to banks.
• Issue digital wallets linked to mobile numbers.

If APIs like “Create Wallet by Bank” evolve to include broader access, such as linking to savings, loans, or insurance products, agents could become true frontliners of open banking. This would allow them to offer a full suite of financial services, not just basic transactions.

The Open Banking Nigeria API Standard supports this vision by enabling secure, consent-based data sharing between banks and third-party providers.

This means agents could eventually help customers compare products, switch banks, or access tailored financial tools, all from a kiosk. Imagine a super-agent location where you can open any bank account and get a debit/credit card immediately.

BVN & NIN Enrollment: Biometric Identity at the Last Mile

The Bank Verification Number (BVN) is a critical component of Nigeria’s financial identity system. Today, many rural dwellers still lack BVNs due to the distance from enrollment centers.

The National Identification Number (NIN) is also mandatory for SIM registration, banking, and government services.

Yet, many Nigerians, especially in rural areas, remain unregistered. By integrating biometric registration kits into agent locations, agents can:

• Enroll citizens for NINs.
• Update or verify existing NINs.
• Link NINs to BVNs and bank accounts.

This decentralization would drastically reduce onboarding friction and bring millions more into the formal financial system.

Card Issuance: Instant Access to Digital Payments

Some FinTech’s have already demonstrated the feasibility of instant card issuance at agent locations. This empowers customers with immediate access to digital payments, reducing reliance on cash. Imagine again, a situation where you can just walk into a bank’s agent location to replace your ATM card or file a transaction dispute.

Bill Payments & Tax Collection: Agents as Government Touchpoints

Agents already facilitate airtime top-ups and utility bill payments, but their role can expand to include:

• Tax collection for local and state governments.
• License renewals (e.g., driver’s licenses, business permits).
• Business Registration
• Social welfare disbursements and pension payments.

This turns agents into multi-service hubs, reducing the need for citizens to visit government offices and improving compliance through convenience.

One of our latest service offerings is targeted at local and state governments to empower youths in certain locations like markets and parks to deliver agency banking services and serves as Tax agents.

By expanding their capabilities and formalizing their infrastructure, agents can evolve from informal cash peddlers into true community bankers, trusted, tech-enabled, and deeply embedded in the financial lives of everyday Nigerians.

*Adedayo Awojobi is currently the COO of payZeep by Paymi Solutions ( a fintech company with pssp, ptsp and agency banking licenses). He is a seasoned entrepreneur and product management leader with over a decade of experience delivering impactful digital solutions across the fintech and enterprise software sectors.

Launched to meet the pressing need for a card scheme tailored to African markets, Verve has grown into a trusted household name, with over 85 million cards issued and presence in several African countries with an expanding consumer appeal across Africa.

Verve’s story began with a challenge; existing international card solutions struggled to meet the needs of Africa’s diverse and dynamic markets. Issues like regulatory complexity, limited infrastructure, and inconsistent connectivity posed serious barriers.

Verve responded with purpose-built solutions engineered to perform where others couldn’t, delivering stability, security, and interoperability for consumers and institutions alike.

From its roots in Nigeria, Verve has steadily expanded its reach and impact. Today, the Verve network powers millions of transactions daily across ATMs, POS terminals, web, retail outlets, online and offline platforms, while remaining grounded in its commitment to local relevance and innovation.

Now with a network of over 350 members, Verve has earned deep trust across the banking and fintech sectors. Its continued growth underscores a broader narrative: Africa is not just adopting digital payments, it’s shaping them.

Furthermore, strategic partnerships with companies like Manipal and Cardforte have enabled the production of eco-friendly Verve cards, allowing Verve to align with global sustainability goals without compromising on durability or security.

Driving Innovation and Regional Integration: Verve’s Expanding Footprint

Verve continues to evolve with the changing expectations of today’s consumers. Recognizing the growing demand for speed and convenience, the brand introduced contactless payment solution, allowing cardholders to tap-to-pay for quicker, more secure and convenient transactions.

Over 30 million Verve Contactless cards have been issued, and the contactless cards are accepted in about ninety percent terminals across Nigeria.

This feature underscores Verve’s commitment to enhancing user experience through innovation rooted in local relevance.

Breaking Barriers to Cross-Border Payments

One of Verve’s most strategic advancements in recent years is its focus on enabling seamless cross-border payments within Africa.

Through a landmark partnership with GIM-UEMOA, the regional switch for the West African Economic and Monetary Union, Verve became the first Nigerian and African card scheme integrated into a major regional payment network. This integration connects over 130 million people across eight West African countries.

With this breakthrough, Verve cardholders can now perform transactions including withdrawals from ATMs, and more, across the UEMOA region.

This dual strength, regional relevance and collaborations with global brands such as Google, Spotify, Temu, AliExpress, Uber, Facebook Ad, Netflix, amongst others, sets the card apart as a uniquely African success story in the digital payments space, with a future focused on deeper financial inclusion and continental interoperability

These partnerships allow Nigerian shoppers to enjoy seamless, secure, and direct Naira payments on both platforms, eliminating foreign exchange hurdles and enhancing the cross-border shopping experience.

Previously, Temu, a rising global e-commerce platform, did not accept Verve cards, requiring Nigerian shoppers to rely on Visa, Mastercard, or virtual dollar cards for transactions.

With this new partnership, Verve cardholders can now make direct purchases in Naira, accessing Temu’s vast selection of affordable products without the complexity of currency conversions.

Similarly, AliExpress, a subsidiary of Alibaba, now fully accepts Verve cards for payments, addressing previous payment challenges faced by Nigerian users.

Through this collaboration, Verve is simplifying digital commerce, enabling Nigerians to shop on global platforms with ease and security, thereby staying true to its brand promise of making transactions and payments seamless and enriching.

Beyond growing its reach, Verve, with over 15 years of consistent quality delivery, is also shaping the future of payments with its transition to contactless technology, enabling faster, more secure, and convenient transactions across digital and physical payment channels.

Verve’s over 70 million cardholders can now enjoy the ease of tap-and-go payments, further enhancing their transaction experience.

Verve cards are widely accepted across Nigeria and select African countries, providing seamless transactions across ATMs, PoS terminals, and online platforms. Cardholders can also use their Verve cards for subscriptions on Google Play, YouTube Premium, Netflix, Amazon Prime, Uber, Spotify, among others, ensuring a broader, more integrated payment experience.

Through these strategic advancements, Verve, Nigeria’s foremost domestic card, is redefining global commerce, empowering African consumers with seamless, secure, and borderless payment solutions.

With such commitment to continue to expand its reach and innovate, it is not a surprise there are over 70 million Verve cards and token in circulation.

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.

Detoxification uses various methods. Diet. Herbal remedies. Intermittent fasting. Therapy. Research says the goal is to support your body’s natural detox systems: the liver, kidneys, and digestive tract to cleanse and purify your body.

On the one hand

A digital detox detaches you from social media platforms and electronic devices: mobile phones, laptops, or tablets.

It is a digital reset. It forces you to be present. The idea is to break the cycle of dependency on digital devices. The overall effect can lead to improved mental health. Better sleep. Meaningful interactions with others. I observe digital detox every week.

On the other hand

A Fintech detox can be as short or as long as you want. Recently, I had a 72-hour Fintech detox. I was refreshed. You may not even think about it. But in the new dispensation, you may go days or weeks without engaging Fintech in any form.

It may be a major reset. It is up to you. For me, I took three days off and shunned engagements with Fintech. I took a break from Fintech. I did not use Fintech products, even to receive and send funds. Can you try it?

In the long term

The pandemic has changed the electronic payments landscape and hastened the adoption of instant payments as people switch to electronic channels for funds exchange. The Covid has transformed our lifestyle. Electronic payment is our world.

The effect of the pandemic has pushed all of us to worship at the Fintech altar. We have moved from cash to card, from bank branch to virtual payment and from virtual to instant payment.

Then many Fintech start-ups emerged to oil the path of worship. A report from ACI Worldwide and Global Data, a leading data and Analytics Company, and the Centre for Economics and Business Research says the volume of real-time payment transactions in Nigeria’s economy will hit 8.9 billion in 2027 from 5.1 billion in 2022.

NIBSS Instant Payments (NIP) is Nigeria’s real-time payment system. NIBSS rolled out NIP in 2011. It is an account-number-based online, real-time inter-bank payment solution. The banks, micro-finance banks, and mobile money operators support NIP.

You can use it via the Internet, mobile banking, bank branches, kiosks, USSD, PoS terminals, and ATMs. This has helped NIP to achieve high adoption and usage rates.

With Fintech detox, you have eliminated phishing, identity theft, and fraud because you rely on cash and not a card. Your spending is minimised.

You are not compelled to spend money because you have prepared for all your needs in advance. No mobile banking. No USSD. No online shopping.

You will not send money via electronic means. You will rely on cash for your purchases. You will not register to complete any transaction.

You’d reduce screen time. In exchange, you will have productive time. For instance, if you spend an average of six hours online per day, that is about 180 hours per month. You can transfer this to improve your life.

By disconnecting from Fintech, and by extension digital, I did more. I concentrated more. I got more out of life.

I finished personal projects on time. Maybe you can work at it too. In the process, you could pick up a new skill that could lead to a promotion. Or get a raise at work. Perhaps you can start a side hustle for some extra income.

When I discovered Fintech detox, I was on a digital detox. I had restricted access to my mobile phone and laptop. The devices were in my limo’s trunk at a retreat. Yes, because I had no access to my devices, I had no access to the Fintech menu. That was the ha-ha moment.

The next time you need more hours to work on a project, consider a digital detox. It will lead you to Fintech detox. No screen time equals Fintech detox. Fintech detox means working offline.

In the short term

With Fintech, you need a device to pay bills, make transfers, and shop online. Start with a digital detox. Then graduate to Fintech detox.

Zone is a decentralized network of Banks and Fintechs powered by blockchain and focused on enabling domestic and cross-border payments.

Following the success of its ATM transaction processing service, the roll-out of its PoS payment gateway  further fulfils the company’s promise of delivering reliable, frictionless and universally interoperable payments across multiple payment channels.

The introduction of Zone’s PoS Payment Gateway product brings a comprehensive payment processing solution to Banks and Fintechs that deploy PoS payment terminals.

The product promises transaction reliability through direct routing of transactions to issuers, same-day settlement for beneficiaries and their financial institutions, and a robust framework eliminating chargebacks and chargeback fraud.

Key to note here is that Zone (as a CBN-licensed payment switch) is able to implement direct transaction routing to issuers without violating regulatory guidelines on inter-bank payments.

At the core of Zone’s PoS Payment Gateway is its regulated layer-1 blockchain network, which guarantees the security, reliability and transparency of every transaction.

Zone’s superior architecture endows the PoS payment gateway with several key features:

• Direct Card Routing: Zone connects acquirers directly to issuers through its decentralised payment switching network. This architecture optimises the PoS transaction route, and eliminates failure points thereby guaranteeing increased speed and reliability of each transaction for the benefit of merchants, agents and cardholders alike.
• No Chargebacks: Zone’s advanced PoS payment gateway eliminates chargebacks and chargeback fraud on PoS terminals by auto-refunding customers for unsuccessful transactions and auto-declining fraudulent chargebacks in real-time — thereby building a foundation of trust and satisfaction among all parties involved.
• Same-Day Settlements: Settlement of payments from PoS terminals using Zone is effected on the same day and separately for each transaction, ensuring faster availability of funds for both agents and merchants alike, and making it easy to determine when value has been received for every transaction.

“Today marks a pivotal moment not just for us at Zone, but also for the Financial Institutions we enable, and the esteemed customers they serve,” said Obi Emetarom, CEO and co-founder of Zone. “Our PoS Payment Gateway Product is a commitment to financial inclusion and to the digital future of all payments in Africa. With this new offering, we are excited to have taken yet another major step towards our vision for a world where individuals and businesses can make and receive instant payments to and from anyone in the world, through any payment method and in any currency.”

Zone’s PoS Payment Gateway emerges as a distinct solution that sets a new standard in the industry. While a few leading fintechs have made some strides towards improving the quality of service specifically for their own PoS terminals, Zone’s offering goes a step further by making such improvements and related advanced features, accessible to all financial service providers in the industry.

This democratization of cutting-edge technology ensures that all institutions utilising Zone’s product for PoS-based transaction processing can now enjoy superior levels of transaction reliability, and operational efficiency while delivering delightful payment experiences to their own customers each and every time.

Also available to customers is an extensive distribution network of over 50,000 Ecobank Xpress Point (agency banking) locations spread across the country.

Head of Payments, Ecobank Nigeria, Dayo Adeyemi said the bank has put measures in place to ensure its customers and users of digital channels have uninterrupted access to full banking services via its state-of-the-art digital channels during the Yuletide season, stressing that Ecobank had embarked on digital transformation drive many years ago to improve customers’ experience and create alternative access to banking services.

Speaking specifically on Ecobank Mobile app, he said the app, which is available for download on the Apple App Store and Google Play Store, makes it extremely easy to bank on the go 24/7, enabling customers to meet their payment needs anywhere and at any time directly from their mobile device.

“The Ecobank App, the first of its kind in Africa has an innovative payment solution, it allows customers manage their accounts, send money, pay bills, buy airtime, pay merchants, and do other transactions across the 33 African countries where Ecobank is present. The mobile app is secure, reliable, convenient, and available to everyone.  This is the season of giving and we offer our customers more options for sending money to loved ones. They can also transfer money to other bank accounts both domestically and internationally,” he said.

He noted that businesses can also carry out uninterrupted transactions during this season via the Omni Lite app. According to him, the app is designed to enhance productivity, manage cash flow, and bolster efficient management of customers’ working capital cycle and its cash management capabilities include account services, payments, collections, liquidity management, detailed and customizable reports, amongst others.

“The Ecobank Omni Lite app enables faster processing of instructions with loading option or file import for mass payments, a customizable system environment with choice of language, time zone and comprehensive, user-friendly navigation menu and state-of-the-art system architecture that meets international safety standards.

He added that “Ecobank continues to provide convenient digital banking solutions to the market. We do this in the hope that every individual can easily open and operate a bank account, make payments, and send remittances to other people, on the back of the numerous self-service solutions deployed by the bank. Everyone can do this without visiting any of the bank’s branches,” he said.