Cashless Economy: Stakeholders Decry Lack of PoS at Key Institutions

Stakeholders in the Information and Communications Technology (ICT) sector have faulted a situation where Point of Sales (PoS) terminal machines, which is one of the channels for cashless transactions, are not available at key institutions like Airports, Power Holding Companies of Nigeria (PHCN), Hospitals, among others, where the public visits regularly for payment of services.


Corporate headquarters of Central Bank of Nigeria

Although they commended the Central Bank of Nigeria and other institutions like the Nigeria Inter-Bank Settlement System (NIBSS), that are driving the cashless initiative in Nigeria, for the level of penetration gained so far, since it was introduced in January, 2012, the stakeholders said key institutions that offer public services that demand financial transactions for payment of services rendered must be equipped with PoS machines, if the CBN and the banks are serious in driving cashless economy, they insisted.

The stakeholders who spoke to THISDAY at different technology conferences in Lagos recently, called on CBN to consider extending cashless transactions to key institutions, in order to fully drive the initiative.

Accepting the stakeholders' point of argument as valid, Head, Corporate Communications at NIBSS, Lilian Phido, said the process of cashless economy is gradual and promised there are plans in the pipeline to introduce PoS in key institutions that are yet to commence financial transactions with PoS.

Phido who spoke at a cashless transaction event in Lagos, organised by Intermarc Consulting recently, however called on Nigerians to maximise the use of PoS and other transaction channels that exist in places like shopping mall and petrol stations, where the public also go to obtain and pay for their services. She pointed out that there are PoS machines installed in petrol stations and shopping malls, but that Nigerians do not ask to use them, blaming it on the culture and attitude of Nigerians, which she said, must change.

"A situation where people buy petrol from petrol stations as well as gas from gas plants and pay with cash, without asking for PoS machine, is about culture attitude, which I think Nigerians must change," Phido said. She explained that PoS machines have been installed in some institutions, but that merchants or sales representatives do not like using the machines for their selfish interests. She therefore advised Nigerians to always insist on using PoS machines for financial transactions, where available.

Head, Training at NIBSS, Mr. Tunde Akinwa, explained that the configuration of PoS machine is a gradual process that would soon be concluded in all key institutions, where financial transactions are carried out. According to him, PoS machines were not configured to work with airport financial transactions, but that gradually, the CBN and NIBBS are thinking in that direction and would soon address it.

In order to encourage Nigerians to use their debit and credit cards in almost all financial transactions, CBN and NIBSS are currently running a promo, where cardholders are rewarded financially for using their debit and credit cards to pay for goods and services. Just as the CBN is driving cashless initiative in the country, Nigerians should also do well to accept it by adopting it in practice, Akinwa said.

Head, Cads, Diamond Bank, Mr. Joakhin Iloemezue, who gave insight on the things that banks are doing to promote cashless economy, said the banks are currently using several software applications that would further demystify banking operations, designed to protect cashless financial transactions, while boosting the initiative.