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Volume of POS transactions rises by 77%

By on October 27, 2015

The volume of transactions conducted through point of sale (PoS) terminals across the country increased by 77 per cent, from 15 million in 2014, to 27 million as at June this year.

The Chairman of the Nigeria Interbank Settlement System Plc (NIBSS),  Alhaji Sulaiman Barau, disclosed this in his statement at the 22nd annual general meeting of the NIBSS, for the year ended June 30, 2015, that was held in Lagos at the weekend.

To further encourage the use of POS as an e-payment channel, the CBN introduced the bank driven Electronic Payment Incentive Scheme (EPIS) refund in November 2014, with the NIBSS assigned the responsibility of implementation. A total sum of N234 million was paid to 1,497,970 unique card holders through 21 banks as at June 30, 2015.

The NIBSS Automated Payment System (NAPS) was unveiled to the Nigerian financial system during the year. The NAPS is an on-line real-time bulk payment system that is not restricted by clearing cycles. It combines the features of NIBSS Instant Payment and NIBSS Electronic Fund Transfer (NEFT) and allows beneficiaries to receive funds within 15 minutes of transfer as against T+1 for NEFT.

Barau, who is also the Deputy Governor (Operations), Central Bank of Nigeria (CBN), also revealed that as a result of the central bank’s effort to stimulate e-payment, cheque clearing declined by six per cent in transaction volume to 14 million as at June this year, from 15 million in 2014.

“The NIP product continues to gain increased acceptance as a funds transfer platform as evidenced by the 92 per cent growth in transaction volume from 28 million in 2014 to 54 million in 2015. However, NEFT transaction volume grew marginally by four per cent to 39 million, from 38 million in 2014, due to customers’ affinity towards instant payment.

“Despite adverse market conditions which characterised the 2015 financial year, the NIBSS was still able to generate strong financial performance across key metrics as e-payment inclusion continues to grow.

“As part of strategies to drive e-payment transaction volume and further reduce cost for banks, the company commenced NIP/NEFT transaction volume discount regime for all banks who apart from being major customers are also esteemed shareholders of the company. Consequently, a total sum of N164.89 million was paid to 21 banks as NIP/NEFT transaction volume discount during the financial year,” he added.

Meanwhile, the accounts showed that the NIBSS’ gross earnings for the year climbed to N6.2 billion, representing a 21 per cent growth over the N5.13 billion recorded the prior year. Also, its operating expenses increased by 19 per cent to N3.39 billion in 2015, from N2.84 billion, while its profit before tax witnessed a 23 per cent growth to N2.81 billion, from N2.29 billion (excluding express discount house recovery of N529 million) recorded the prior year.

 

[ThisDay]