But even after the currency redesign issues settled, charges stayed high. Agents say that this isn’t just about making a quick buck — they’re feeling the squeeze too. First off, cash is becoming harder to come by, meaning they have to pay more to get it in the first place. Then there are higher expenses like maintenance costs, which have shot up due to inflation.
Customers aren’t happy about this. Many rely on PoS withdrawals for their daily transactions, and higher charges mean less money in their pockets. Some have even started avoiding PoS services altogether, opting to queue at ATMs instead. This isn’t just inconvenient; it’s also a step backward for financial inclusion efforts in Nigeria.
Meanwhile, authorities are keeping a close eye on the situation. The CBN has promised to take action against agents charging excessive fees, but it remains to be seen how effective these measures will be. For now, customers and agents alike are stuck in a tough spot, with no easy solutions in sight.
That’s all for now. Stay tuned for more updates from Techpoint Africa!
Slán go fóill,
Victoria
. The use of Point of Sale (PoS) services has become increasingly popular in Nigeria, especially with the convenience they offer for financial transactions. However, recent changes in charges have left both operators and customers grappling with higher costs.
Operators like Nathaniel in Enugu have had to adjust their rates to accommodate the additional costs imposed by banks. With a levy on transfers above ₦10,000 and the challenge of obtaining cash from banks, PoS operators are forced to pass on these expenses to customers. This has led to an increase in charges, with rates now ranging from ₦150-₦200 for transactions under ₦5,000 and ₦300 for transactions between ₦5,000-₦10,000.
While operators justify the increase in fees due to rising costs of electricity, logistics, and even receipt paper for PoS terminals, customers are not pleased with the additional burden. Despite complaints, many continue to use PoS services as alternatives are limited in the current financial landscape.
The Association of Mobile Money & Bank Agents of Nigeria (AMBANN) acknowledges the need for the fee increase but is working to negotiate lower levies with banks and urging agents to keep charges reasonable. However, enforcing these guidelines remains a challenge.
As pressure mounts on the Central Bank of Nigeria (CBN) to regulate fees, the dilemma lies in balancing accessibility to cash without undermining the country’s push towards digital payments. While reducing charges may make cash more accessible, it could hinder efforts to promote digital transactions.
In light of these challenges, the question arises: how can cash remain accessible while encouraging the transition to digital payments? The balance between affordability and convenience is crucial in shaping the future of financial transactions in Nigeria.
In other news, Moniepoint is currently hiring for various roles, offering opportunities for interested individuals. Additionally, Airtel users can enjoy the New Year with stories like Smart Couples by dialing 421 on their line. For more information, follow Techpoint Africa’s WhatsApp channel to stay updated on the latest trends in the African tech space.
As the financial landscape continues to evolve, the need for innovative solutions that cater to both operators and customers remains paramount. Finding a balance between cost-effectiveness and convenience will be key in shaping the future of PoS services in Nigeria.
Have a wonderful Thursday!
Victoria Fakiya for Techpoint Africa.
