TECH ECONOMY
I went to use a Point of Sales (PoS) outside my estate recently, and the operator informed me that withdrawing ₦5,000 now costs ₦200 charges!
I was taken aback and when I asked why, she simply responded: “I haven’t been out for two days because I was looking for cash. They’ve increased the price.”
But who exactly are “they”? Are ATMs now charging to dispense cash? Do banks charge for cash withdrawals at the counter?
ATMs frequently run out of cash, while PoS agents somehow seem to always have cash available to “sell” at a premium. This has led to complaints about having to pay to access one’s own money.
While PoS services have undoubtedly brought financial inclusion to areas where banks are scarce, there’s a growing issue that some PoS operators might be exploiting the situation, taking advantage of this drive towards financial inclusion and a cashless economy.
With limited ATM infrastructure and high demand for cash, PoS operators have become indispensable. However, the high fees charged by some agents are projecting unfairness.
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These reveal the increasing demand and indispensability of the POS, with transactions hitting ₦6.23 trillion between January and July 2024.
PoS agents have undeniably bridged a huge gap in Nigeria’s financial system. In remote or underserved areas, they bring banking services closer to the people, reducing the distance many must travel to withdraw cash or make simple transactions.
However, there’s a fine line between providing a necessary service and exploiting customers. With the CBN’s push for a cashless economy, PoS agents are a big part of the vision. But are we moving too quickly without addressing the financial stress this transition places on consumers?
For many Nigerians, the convenience of PoS agents comes at a high price. Take my recent experience: ₦200 to withdraw ₦5,000. This charge, while seemingly small, is a financial burden for people who rely on these services regularly.
Are these fees reflective of operating costs, or are some operators exploiting the situation? PoS agents argue that sourcing cash often involves added expenses, especially when ATMs run dry. While this is valid, consumers feel the sting of paying to access their own money.
The perception that PoS agents are replacing traditional banks is widespread. Nevertheless, financial experts disagree with this notion.
At the TechConnect 4.0, Interswitch MD, Payment Processing and Switching, Akeem Lawal clarified: “No, fintechs or PoS agents are not taking over banks. What has happened over the last five years is the deepening of financial inclusion. The mission is to reduce the reliance on cash altogether.
