According Analysts, financial Traders nationwide recorded a low PoS (point of sale) sale of N46 billion in 3.6 million transactions in January compared to the N53 billion recorded in December 2015.
Commenting on the statement, Christabel Onyejekwe, executive director, Business Development, Nigeria InterBank Settlement System (NIBSS) said that the decrease can associated to the continuous decrease in value of Naira against dollar.
Onyejekwe further said that the decrease has led to the increase in prices of PoS terminals which was formerly at N62, 000 per terminal to N80,000.
Also reacting to the development, Tunde Ogungbade, managing director, Global Accelerex stated that PoS terminal are imported to Nigeria, so it is also subjected to increase as Naira devalues.
“In the short run, I do not believe it will have a significant impact on PoS terminal deployment rates. We will continue to see forward-looking banks leveraging PoS terminals and other e-channels to drive down cost and offer innovation to merchants and customers.
"However, in the long run, this may have an adverse effect on the deployment rate of PoS terminals because these same banks have already been hit by the reduction in revenues due to the policy changes that eliminated COT charges to customers, in spite of the new policy on Current Account maintenance fees. In future earnings reports, cost reduction will be critical to achieving earnings, therefore, banks will be more prudent with costs and investment offers to their investor confident.
Return on Invested Capital (ROIC) for PoS terminals will be more scrutinized.”
On how to stimulate cashless initiative this 2016, he said that: “We need to continue the campaign we started with the cashless policy. Discourage deposits of large amounts at banks to drive adoption at the merchant locations and thereby leverage the direct interaction between consumers and merchants for education.
When a merchant starts to encourage a consumer to engage electronic channels for commerce, awareness and campaign at the grassroots level has begun”.