Point-of-Sale services, commonly known as PoS, have become a lifeline for millions of Nigerians, bridging the gap in a financial system plagued by cash shortages and unreliable banking services.
However, behind this convenience lies a complex web of challenges, ranging from exorbitant transaction charges to security risks. The realities of PoS services show their benefits, discomforts, and hidden risks.
Across Nigeria, PoS terminals are everywhere, from crowded markets to remote villages, transforming the way people access cash and conduct financial transactions.
For customers like Clement Ogbomo in Awka, Anambra State, PoS is a lifesaver but this convenience comes at a cost.
Many customers including Blessing Ben, who is a trader at the Abakaliki International Market, complain about exorbitant and unregulated charges by operators.
While these fees charged by PoS operators have become a daily frustration for customers, some operators in Owerri, the Imo State capital, say they too are victims of Nigeria’s broken system.
MUST READ: Special Report: PoS and its complex web of challenges
Despite these complaints, PoS services have undeniably created job opportunities, remaining a steady source of income in a country grappling with high unemployment rate.
But, the source of cash for PoS operations raises concerns as financial experts including Professor Chiwuike Uba in Enugu State warn that their operations may fuel corruption and undermine the economy.
A security consultant, Moses Ajeaka highlights the darker side of PoS services, stating that the terminals are increasingly exploited for criminal activities, from ransom payments to fraudulent transactions.
The Central Bank of Nigeria, CBN has recently introduced new regulations where banks are required to ensure that all PoS terminals are connected to a Payment Terminal Service Aggregator, PTSA, while the daily withdrawal limit has been set to ₦100,000, and the PoS cash-out limit restored to ₦1.2 million.
The big question is whether these reforms will address the underlying operation issues and security risks?
With the festive season here and the need for cash transactions more pressing, it makes PoS services indispensable, amid concerns for a system that can be regulated to balance convenience with security, and fair deals.
(Editor: Terverr Tyav)
