The grand finale, which held at Classique Event Place, Oregun, Lagos, epitomised Interswitch’s commitment to shaping the future of financial services in Africa.

The series has served as a powerful platform for advancing high-level discussions on technology, innovation, and financial inclusion, fostering collaboration across the financial services ecosystem.

The event was a fitting climax to a series that brought together industry leaders, policy makers, fintech innovators, and microfinance practitioners, who gathered to explore the vital role of technology in driving financial inclusion and economic growth across Africa.

Throughout the TechConnect 4.0 series, Interswitch has reinforced its mission to build digital solutions that provide equal access to financial services for individuals, businesses, and institutions.

Delivering his keynote address, Akeem Lawal, managing director, Payment Processing & Switching, Interswitch Purepay, highlighted the transformative potential of digital payment solutions:

“At Interswitch, we are deeply committed to financial inclusion, recognising that digital payment solutions are pivotal in expanding access to underserved populations. By enabling broader participation in the economy, we believe we can create a rising tide that lifts all boats, empowering individuals, businesses, and financial institutions alike. Our vision is simple yet profound: to power a seamless, connected payment ecosystem across Africa, turning challenges in the payments landscape into opportunities for economic growth and shared prosperity,” said Lawal.

The Lagos finale featured a dynamic fireside chat themed “Regulating New Technologies: Strategies for Innovation and Compliance, Harmonising Regulatory Frameworks and Risk-Based Approaches.

The speakers emphasised the critical role of collaboration between regulators and industry players in navigating the rapidly evolving technology landscape.

They also highlighted the importance of designing regulatory frameworks that balance innovation with compliance to create a sustainable fintech ecosystem.

Two thought-provoking panel sessions enriched the discussions at the event, offering diverse perspectives on critical industry topics.

The first session, themed “Navigating the Future of Financial Services: Integrating Compliance, Technology, and Collaboration to Combat Fraud and Drive Growth,” focused on leveraging compliance, technology, and collaborative efforts to address fraud challenges while unlocking new growth opportunities.

The second session, themed “Building Financial Resilience: The Intersection of Commercial & Microfinance Banks, Fintechs, & OFIs in Fostering Growth within the Financial Services Sector,” explored strategies for fostering resilience and growth through synergy between financial institutions and fintechs.

₦200 for ₦5,000 – How PoS Charges Are Changing Everyday Transactions in Nigeria

A special highlight of the event was the presentation of awards by Interswitch to Zenith Bank, Access Bank, First Bank, UBA, and Fidelity Bank in recognition of their exceptional performance and significant contributions to the financial ecosystem.

Moniepoint, Opay, Paystack, VFD Microfinance Bank, Lapo Microfinance Bank, and several others were also honoured for their impactful roles in advancing the sector.

The TechConnect 4.0 series traversed Nigeria’s key financial hubs, showcasing the transformative power of technology and digital payments in promoting financial inclusion.

At each stop, participants engaged in hands-on demonstrations of cutting-edge digital solutions, gaining practical insights into the tools and strategies redefining the financial services landscape.

The series underscored Interswitch’s strategic vision of financial transformation, providing a platform for stakeholders to address challenges and opportunities in the sector.

The events successfully reflected regional priorities while reinforcing the company’s overarching commitment to innovation and resilience across Nigeria.

As the TechConnect 4.0 series concludes, it has not only left a lasting impact on Nigeria’s financial landscape but also set a clear direction for future initiatives aimed at integrating technology and financial services across Africa.

Interswitch remains unwavering in its commitment to fostering partnerships, supporting innovation, and promoting financial inclusion to empower communities and drive economic growth.

Looking ahead, Interswitch continues to lead the charge in shaping the future of Africa’s financial ecosystem by delivering solutions that unlock potential, empower underserved populations, and create sustainable growth across the continent.

I was taken aback and when I asked why, she simply responded: “I haven’t been out for two days because I was looking for cash. They’ve increased the price.”

But who exactly are “they”? Are ATMs now charging to dispense cash? Do banks charge for cash withdrawals at the counter? 

The Issue

ATMs frequently run out of cash, while PoS agents somehow seem to always have cash available to “sell” at a premium. This has led to complaints about having to pay to access one’s own money.

While PoS services have undoubtedly brought financial inclusion to areas where banks are scarce, there’s a growing issue that some PoS operators might be exploiting the situation, taking advantage of this drive towards financial inclusion and a cashless economy. 

With limited ATM infrastructure and high demand for cash, PoS operators have become indispensable. However, the high fees charged by some agents are projecting unfairness.

Organised Labour Unhappy over “Cashless” ATMs

Analysis: The Numbers Behind the Problem

• PoS Charges: Some agents charge ₦100 for every ₦5,000 withdrawn, meaning an individual would pay ₦3,000 to access ₦150,000 of their own money. Now imagine the charges going up to ₦200.
• PoS Proliferation: As of 2024, there are over 3.04 million registered PoS terminals deployed across the country, compared to just 22,600 ATMs, making PoS a more accessible option for many Nigerians. 
• Cash Usage Trends: Currency held outside the banking system rose to ₦3.79tn in June 2024, up from ₦3.61tn in April.

These reveal the increasing demand and indispensability of the POS, with transactions hitting ₦6.23 trillion between January and July 2024.

The Role of PoS in Financial Inclusion

PoS agents have undeniably bridged a huge gap in Nigeria’s financial system. In remote or underserved areas, they bring banking services closer to the people, reducing the distance many must travel to withdraw cash or make simple transactions.

However, there’s a fine line between providing a necessary service and exploiting customers. With the CBN’s push for a cashless economy, PoS agents are a big part of the vision. But are we moving too quickly without addressing the financial stress this transition places on consumers?

The Cost of Convenience

For many Nigerians, the convenience of PoS agents comes at a high price. Take my recent experience: ₦200 to withdraw ₦5,000. This charge, while seemingly small, is a financial burden for people who rely on these services regularly.

Are these fees reflective of operating costs, or are some operators exploiting the situation? PoS agents argue that sourcing cash often involves added expenses, especially when ATMs run dry. While this is valid, consumers feel the sting of paying to access their own money.

Are PoS Agents Replacing Banks?

The perception that PoS agents are replacing traditional banks is widespread. Nevertheless, financial experts disagree with this notion.

At the TechConnect 4.0, Interswitch MD, Payment Processing and Switching, Akeem Lawal clarified:
“No, fintechs or PoS agents are not taking over banks. What has happened over the last five years is the deepening of financial inclusion. The mission is to reduce the reliance on cash altogether. 

“The focus is on promoting a cashless economy, driving the Central Bank of Nigeria (CBN)’s vision because cashless transactions are more efficient and transparent.

“PoS agents are part of the transition to a cashless future. When you go to an agent for a cash-based transaction, we are encouraging that interaction to shift from physical cash to digital payments.”

Traditional banks remain dominant in large-scale financial transactions and corporate services. PoS agents, on the other hand, cater to smaller, immediate needs, filling a gap left by limited banking infrastructure.

Adaobi Okerekocha, chief innovation officer at Interswitch, explained: “Cash is not the end goal; it’s just a means to access something else. Whether it’s paying for transport, school fees, or bills, the goal is to move those interactions into the digital space.”

To support this vision, companies like Interswitch are developing tools and products to make digital payments seamless for both businesses and individuals. 

“Ultimately, the shift towards a cashless economy requires a change in personal lifestyles and habits. People need to embrace digital payments as an alternative to cash for their daily needs.”

Achieving a fully cashless economy requires significant investment in digital infrastructure and public education.

Balancing Innovation and Accessibility

While PoS agents are essential to financial inclusion, the challenges springing up require a balanced approach:

• Standardising PoS Charges: Regulators must ensure that fees remain fair and transparent, protecting consumers from exploitation.
• Expanding ATM Infrastructure: Banks need to increase ATM availability, especially in high-demand areas.
• Promoting Digital Payments: Incentives for using digital payment platforms can reduce reliance on cash.

Nigerians are already facing enough economic challenges as it stands, so moving towards a cashless economy, the question: “Are we doing enough to ensure that everyone benefits fairly from this financial evolution?” must be looked into.

The answer lies in finding a balance—where innovation meets accessibility, and no one is left behind in the journey towards a digital financial future.

Themed “Unlocking Growth Opportunities through Technology and Innovation,” the event convened industry leaders, technology experts, and stakeholders from across the financial and technology sectors to explore how digital solutions can drive business growth and economic development in Nigeria.

The event, which recently held at Best Western Hotel, Enugu, provided a dynamic platform for insightful discussions, products demonstration, and networking opportunities, with major focus on the transformative role of digitization, particularly in the microfinance and financial technology sectors.

As a key driver of conversations around digital transformation, the event showcased how technology can unlock immense opportunities across various industries, especially in underserved markets.

In his keynote speech titled “The Digital Transformation of Microfinance Banking: Challenges and Opportunities,” Akeem Lawal, Managing Director, Payment Processing and Switching at Interswitch Purepay, represented by Emmanuel Nwokocha, Head of Sales, South-South, Interswitch, emphasized the evolving financial landscape and the necessity for microfinance banks (MFBs) to embrace technology to stay competitive and effective.

“We are entering a phase where digital transformation is no longer optional but essential for the survival and growth of microfinance. For microfinance banks to successfully latch onto the benefits of digital transformation, partnerships are critical. This means collaboration between MFBs, financial technology companies, mobile network operators, government agencies, and development organisations by working together, resources can be harnessed, share expertise, and drive innovation to meet the demands of today’s financial ecosystem,” he noted.

He further highlighted Interswitch’s commitment to empowering microfinance institutions:

“At Interswitch, we understand the significance of these partnerships, which is why we provide not just technology, but also the tools and platforms that ensure seamless digital transformations. Our digital payment gateways, data solutions, and infrastructure are purpose-built to support MFBs in navigating this transformation confidently.”

A highlight of the event was the panel discussion titled “The Future of Microfinance – Transforming Microfinance through Digitization.”

The session brought together leading microfinance practitioners, policymakers, and technology innovators, who highlighted the growing need for microfinance institutions to continuously embrace digital transformation.

They discussed how adopting digital platforms enhances financial inclusion, improves operational efficiency, and scale services to a broader customer base.

Also among the event’s highlights was a Fireside Chat titled “The Role of Government and Fintech in Fostering Digital Economy – Initiatives/Contributions, Challenges, Opportunities”.

This engaging session featured representatives from Interswitch and the government discussing the continuous need for collaboration between the public and private sectors.

This event marks the beginning of the TechConnect 4.0 series, by visiting major cities across Nigeria, including Asaba, Abuja, and Ibadan, with the grand finale set for Lagos.

Each stop will address region-specific challenges and opportunities, fostering collaboration between indigenous businesses and industry leaders to drive the adoption of cutting-edge technology solutions.

With a successful launch in Enugu, Interswitch continues its mission to unlock growth through technology and innovation, empowering businesses and communities across Nigeria to harness the immense potential of the digital economy.