By Emmanuel Enitan
The growing adoption of mobile transfers by Nigerians is putting pressure on the business of Point of Sale (PoS) agents, raising concerns about their earnings and the future of cash-based payment services amid the country’s accelerating shift towards digital transactions.
The increasing use of banking applications and instant transfers for everyday payments is changing how consumers access financial services, with some customers opting to send money directly rather than pay transaction charges at PoS terminals. The shift is creating uncertainty for agents who depend on cash withdrawals, transfers and other payment services for their daily income.
For many operators, PoS businesses have provided a source of employment and a means of livelihood, particularly in neighbourhoods where access to bank branches and automated teller machines is limited. However, as digital payment options become more accessible, agents face the challenge of retaining customers while managing operating costs, transaction charges and competition.
The development also highlights a changing landscape for Nigeria’s financial inclusion drive. While mobile transfers offer convenience and reduce dependence on physical cash, PoS agents continue to serve customers who need cash, lack reliable access to digital banking or require assistance with financial transactions.
Industry observers say the long-term outlook for PoS operators will depend on their ability to adapt to changing consumer behaviour by diversifying services and serving communities where cash remains essential.
The transition raises broader questions about how Nigeria can sustain financial inclusion while ensuring that the expansion of digital payments does not leave small payment-service operators struggling to remain viable.
