Over the past 5 years, the volume of POS transactions has posted a 69% CAGR making the sector an active contributor to CBNs drive towards a cashless Nigeria. The global POS terminals market is expected to post a 8% CAGR over the next 5 years (Source: Technavio)*. This growth is expected to further increase the volume of POS transactions over the same period.
Active sectors in the economy still remain the Retail, Wholesale and Fast Food recording a growth of 86%, 134% and 67% respectively when compared to 2017.
However, we have seen major growth in Fuel Stations with a 159% growth as POS adoption continues to increase amongst Fuel Stations.
Mastercard remains the card brand of choice as 57% of transactions were carried out using the brand. However, we observed marginal gains with Verve and Visa with an additional 4% and 1% respectively when compared to 2017.
Lagos State remains the top destination for POS transactions; accounting for 53% of total volume. Rivers State and FCT have also witnessed marginal gains when compared to 2017.
15% of POS transactions failed in 2018. While this figure is quite high based on regulatory requirements, it is worth noting that 63% of these transactions were caused directly or indirectly by customer errors. This errors span from customers selecting the wrong account option to debit to insufficient funds in the chosen account type. 46% of the total failed transaction was caused by the error “Not Sufficient Funds”. Without these errors, the industry failure rate would drop drastically to 5%.
