Lately, Nigerians have discovered themselves relying extra on Level of Sale (POS) brokers as an alternative of Automated Teller Machines (ATMs) to entry money.
This shift has been pushed by a number of elements, together with authorities insurance policies, banking limitations, and the necessity for comfort. Nigeria’s banking system has modified. Whereas the CBN goals for a cashless society, most Nigerians nonetheless depend on money for day by day transactions. Since ATMs now not meet their wants, POS brokers have stepped in to fill the hole. Whether or not this pattern will proceed or change sooner or later stays to be seen.
How did we get right here?
The Central Financial institution of Nigeria (CBN) has been pushing for a cashless financial system. To realize this, it has launched insurance policies resembling withdrawal limits and further fees on money transactions.
Nevertheless, as an alternative of going absolutely digital, Nigerians have turned to POS brokers for fast and simple money withdrawals.
ATMs now not serve the individuals
ATMs have been as soon as the go-to choice for withdrawing money at any time of the day. However issues have modified. Many ATMs now not have money, and even after they do, lengthy queues and withdrawal limits make them irritating to make use of. Reviews recommend that almost all financial institution ATMs stay empty for lengthy intervals, forcing individuals to search for alternate options.
One of many greatest causes for that is price. Sustaining ATMs requires safety, energy, and common money restocking. Some banks see this as an pointless expense, particularly since POS brokers can present comparable providers with out a lot effort from the banks.
The rise of POS brokers
POS brokers are in all places. In most Nigerian cities, you don’t should stroll far earlier than you discover one. In contrast to ATMs, they’re all the time stocked with money—although they cost a price for withdrawals. These brokers have turn out to be the spine of money transactions, particularly in areas the place banks and ATMs are scarce.
As of 2024, POS transactions in Nigeria have grown considerably. More cash is being withdrawn by POS brokers than from ATMs. Reviews present that in simply six months, Nigerians transacted over N85 trillion utilizing POS, whereas ATM withdrawals have been a lot decrease.
Safety Issues Round ATMs
One more reason why ATMs are now not widespread is safety. In the course of the money crunch in 2023, many financial institution ATMs have been vandalized. Criminals additionally started focusing on ATM customers, making individuals really feel unsafe withdrawing massive sums of cash from financial institution machines. POS brokers, however, are scattered in numerous places and supply a safer different.
Will ATMs Make a Comeback?
The CBN is making an attempt to revive ATM utilization by introducing measures to maintain them stocked. It has additionally launched cellphone numbers for patrons to report banks that fail to keep up money of their ATMs. Moreover, some banks are exploring deposit-taking ATMs, which may recycle money deposits to scale back shortages.
Nevertheless, with the benefit of cell banking, QR code funds, and the widespread availability of POS brokers, ATMs could by no means return to their former glory. Nigerians want comfort, and for now, POS brokers stay essentially the most accessible strategy to get money.