Nigerians Shun PoS for Transactions

Point of Sale (PoS) terminal, the electronic device used for verification and processing of credit card transactions is not popular yet in Nigeria despite the wide acceptance of Automated Teller Machine (ATM), Nigeria CommunicationsWeek has found.
Lack of awareness and uneven deployment of the device are some of the reasons PoS have not caught the fancy of Nigerians.
Investigations showed that Nigerians have shunned the computerized replacement for a cash register, preferring instead to make cash transactions.
According to InterSwitch, a major card scheme in the country, of the 11,666 PoS deployed across the country, there are only 1,749 transactions. This represents just 15 per cent of the number deployed.
Nigeria CommunicationsWeek investigations revealed that some super markets, fuel stations, eateries and other retail outlets where the device are deployed have been abandoned as a result of lack of patronage.
It was gathered that of over 20 million electronic payment cards issued, only 13,581 was used in 1,749 active PoS.
Mr. Valentine Obi, managing director, eTransact, an e-payment service provider, attributed low patronage of PoS by Nigerians to lack of awareness.
Obi said the use and availability of PoS at merchant locations need to be brought to the consciousness of Nigerians just as banks did with ATM.
He added that presently, PoS are deployed mostly in areas most people see as reserved for the rich and not at places that will drive volumes such as Idumota market and so on.
Nigeria CommunicationsWeek observed that electronic payment system in the country is undergoing transformation occasioned by Central Bank of Nigeria (CBN) directive to banks to migrate from the traditional magnetic stripe cards to Europay, MasterCard and Visa standard chip and Pin cards.
Thereafter, banks were directed to relocate their offsite ATMs, which led to licensing of additional ATM Consortiums that will deploy and manage such offsite ATMs.
The system also witnessed the commencement of National Central Switch that will address the problem of interoperability especially with transactions on Point of Sale terminals (PoS).