Across Nigeria, an increasing number of people are abandoning traditional banking halls in favor of Point of Sale (POS) systems for their financial transactions. Many citizens who spoke with our reporter said the rise of fintech companies has simplified banking and made POS their preferred option.
What started as a support service has now become a lifeline for millions, especially in communities where banks are either too far away or where long queues and network failures make transactions stressful. For many Nigerians, POS machines are not just about convenience—they represent accessibility, speed, and a safer alternative to carrying out financial activities in crowded banking halls.
“It is easier and less stressful. Using POS is more secure than going to the bank, because withdrawing huge amounts from the bank attracts too much attention,” one respondent explained.
Another added, “I prefer going to the bank, but only when I’m not in a hurry. Banks often tell customers there’s no cash, but POS operators always provide what you need.”
“In terms of convenience, you can step out of your house to withdraw money instead of spending time and transport going to the bank. It reduces stress,” said another user.
Finance experts also acknowledge this growing trend. Prof. Tamunonimim Ngenebua, a lecturer of Finance at the Rivers State University, admitted there has been a clear shift from traditional banks to POS services, influenced largely by the COVID-19 pandemic and the phasing out of old naira notes between 2022 and 2023.
“Most POS operators, though dependent on banks, are more accessible to people. You can use them day and night, unlike banks that operate within strict hours and bureaucratic processes,” he noted.
However, Prof. Ngenebua also warned of risks, pointing out that while POS offers speed and accessibility, it has also become a tool for fraudulent activities.
He further argued that the POS system is not helping Nigeria’s economy. According to him, multiple charges from both banks and POS agents reduce the real value of money in circulation.
“If I deposit ₦100,000, the POS agent charges me, and the bank also charges me. If I withdraw, the same thing happens. POS charges are even higher than banks’. For instance, if I transfer ₦100,000 to you, I am charged, and you are also charged, meaning I spend more than ₦100,000 to send ₦100,000, while you receive less. This continuous deduction reduces the value of money, which is why I say POS is not helping the economy,” he explained.
