PoS transactions hit N1.64 trillion in 5 months
The latest data released by the Nigeria Inter-Bank Settlement System (NIBSS) has indicated that the value of transactions done across Point of Sale (PoS) channels in Nigeria increased from N1.14 trillion recorded between January and May 2019 to N1.64 trillion within the same period in 2020.
The report implies that the total value of transactions from PoS machines rose by N500 billion, which represents a 43.8% increase in five months.
The total volume of PoS transactions also increased from 152.6 million to 228.86 million within the period under review. This indicates that the volume increased by 76.26 million, or 49.9%.
The development implies that Nigerians spent more using PoS, which reflects spending patterns of Nigerians via merchant outlets such as restaurants, supermarkets, retail markets and shops, shopping malls, than they did since 2017 (January – May alone).
The increasing trend persisted between January and May 2020, except for April when it dropped to N272 billion for obvious reasons. The total volume of payment transactions across Nigerian payment channels fell by a whopping 26% in April compared to the preceding month. The Nigerian government imposed a lockdown on economic activities in the commercial cities of Lagos, Abuja and Ogun States between March and April.
The use of interbank instant payments on USSD platforms by bank customers received a significant boost, as transactions through NIBSS Instant Payment (NIP) rose to N48.65 trillion, up from N41.48 trillion within the same period. This means transactions through NIP rose by 17.28% (N7.17 trillion) in five months.
According to the NIBSS data, mobile transfers done between January and May 2020 represented a 364.6% rise. The biggest mobile transfer recorded was done in May (N230.23 billion), compared to N133.21 billion in January 2020.