In July 2024, Nigeria's Point of Sale (PoS) transaction volume surged to an unprecedented ₦1.01 trillion, highlighting a shift towards a cashless economy.
Record Increase in Cashless Payments
This significant increase is observed from ₦930.76 billion in June 2024 and ₦923.37 billion in July 2023. According to Statista, the number of PoS payments significantly increased between 2015 and 2023. By 2022, Nigeria registered over 3.8 billion PoS transactions, while the previous year saw a volume of around 2.7 billion.
Impact on the Informal Economy
The deployment of PoS terminals is noted across the country. As of July 2024, 4.06 million terminals were registered, with 3.05 million actively deployed. This marks a 24% increase from the 2.30 million active terminals recorded in July 2023. According to Moniepoint's report, digital payments, including PoS, have doubled since the beginning of 2023, largely driven by the Central Bank of Nigeria's cashless policy. The shift to electronic payments by many businesses helps enhance transaction efficiency and contributes to financial inclusion in areas previously underserved by traditional banking services.
Rapid Growth of Mobile Payments
The NIBSS report also highlights the explosive growth in Mobile Money Operations, totalling ₦6.23 trillion in July 2024. This is a ₦500 billion increase from ₦5.68 trillion in June and represents a 63% increase from ₦3.82 trillion in July 2023. According to expert Kamsy Osakwe, the increase in transaction values is due to rising fuel and food costs.
The adoption of PoS terminals and other digital tools in the informal sector highlights significant changes in Nigeria's economic landscape. Meanwhile, the acceptance of mobile money continues to grow, especially in regions with underdeveloped traditional banking infrastructure.
