Nigerians Slash Expenditure On E-payment

Nigerian cardholders have started reducing their spending activities executed on Point of Sales (PoS) terminals following the volatile economic situation breeding hike in the cost of consumer goods and services, New Telegraph has learnt.
According to an industry report obtained from the Nigeria Interbank Settlements System Plc. (NIBSS), there are currently some 117,319 PoS terminals deployed across the country. Analysis of the PoS transaction activities showed that the e-payment sector recorded a slump early this year as the value of PoS transactions fell by 13.6 per cent between January and February, this year.
Industry analysts say the decline is indicative of individual Automated Teller Machine (ATM) cardholders’ apparent cut-down in expenditures in the wake of unfavourable the downturn in the economy, triggered by fall in the prices of crude oil (which accounts for about 70 per cent of Nigeria’s revenue and 80 per cent of her foreign exchange earnings) at the international markets.
According to them, consumers’ decision to reduce their expenditure exposure is ostensibly unconnected with the increase in the general cost of consumer products and services. Specifically, PoS transactions plunged from N53.4 billion and N46.1 billion between January and February.
This represents a loss of about N7.3 billion transaction in monthly PoS processing and equivalent to 13.6 per cent. The monthly figures for January and February, thus, compare with PoS transaction values of N31.7 billion and N30.9 billion recorded in the same months last year.
Consumers, who spoke with New Telegraph at the Ikeja Shopping Mall, confirmed the cut down in their expenditures. “My brother, I won’t lie to you. You are also aware of what the economy is saying now.
Cost of products has gone up, as a result of the exchange rate. On whether I have reduced my expenditure, yes, I can confirm that to you,” a customer to Shoprite, Mr. John Uche, said.
Another customer accosted at the same place over the weekend, who gave his name simply as Akolapo, stressed the fact that he had reduced his expenditure not only through PoS but also through cash.
“One must reduce one’s expenditure, especially when your salary is not increased by your employers and yet, cost of things start going up,” he said.
In 2015, Nigerians transacted N448 billion on some 62,000 active PoS terminals deployed across the country, according to the NIBSS report. Further analysis of the study showed that PoS recorded an average of N1.5 billion daily transactions throughout last year.
In January last year, PoS transactions stood at N31.7 billion; in February, the transaction was N30.9 billion and by March, the figure increased to N33.5 billion monthly.
Also in April, May and June, the value of PoS transactions executed by some of the 42 million Automated Teller Machine (ATM) holders stood at N34.6 billion; N35.9 billion and N34 billion respectively.
The PoS transactions increased to N36.9 billion in July; but slightly dropped to N35.8 billion in August and further regained its growth momentum in September with transaction seating at N39.6 billion.
The country recorded its highest PoS transaction volume and value in the last quarter of 2015 with transactions standing at N41.5 billion; N40.2 billion and N53.4 billion in October, November and December respectively.
However, last January, the PoS business transacted by Nigerians dropped to N46.6 billion. Meanwhile, the NIBSS report also provides information on the number of PoS registered and those deployed, from which the industry has active and dormant PoS terminals.
According to the report, in January this year, there were 141, 787 PoS terminals registered with 119,126 terminals deployed.
Also in February, the number of registered PoS terminals increased to 140, 064 just as 117, 319 of them were actually deployed by the various Payment Terminal Service Providers (PTSPs).
The Central Bank of Nigeria (CBN) had earlier set a 350,000 PoS deployment target in the country but as yet to achieve this in spite of the increase in the number of PTSPs licensed. PTSPs are the companies licensed by the apex bank to deploy PoS terminals for merchants on behalf of the banks.
The idea of PTSP was conceived to allow the banks to focus on their core banking services without bothering themselves with the deployment of PoS for merchants.
The 19 terminal operators include Global Accelerex Limited, Citiserve Limited, Interswitch Limited, ITEX Integrated Systems, Top Limited, Paymaster Limited, Globasure Technologies Limited, Signal Sources Nigeria Limited, Bizzdesk Global Solutions Limited, Callphone Limited and Cloud Systems Limited.
Others include TITIS /Goswiff Limited, Nera Networks Nigeria Limited, Electronic Settlement Limited, Computer Warehouse Group Plc, Inlaks Computers Limited, Easyfuel Limited, Emerging Markets Telecommunication Services Limited and Ameya Infocom Limited.

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