The latest selected banking sector data released by the National Bureau of Statistics (NBS) shows that the total value of transactions for both Point of Sales (POS) and Automated Teller Machines (ATMs) during the first quarter (Q1) of 2019 declined by N258 billion.
According to the Bureau’s report, the value of POS transactions for Q1 2019 was estimated at N633 billion, down from an estimated value of N714.3 billion in the fourth quarter (Q4) of 2018. This represents an 11% (N80.5 billion) decline on a quarter-on-quarter basis.
Similarly, ATMs transactions value stood at N1.15 trillion for the quarter, down from N1.71 trillion as at the end of 2018. This means that in the first quarter of 2019, the estimated value of ATM transactions dropped by 10% (N258.2 billion).
Numbers breakdown:
- The volume of ATM transactions declined by 22.5 million
- POS transactions volume dropped by 5.2 million
- The volume of Internet or web payment declined by 1.4 million
- The value of cheques transactions dipped by N105.6 billion
- ATM total transactions value down by N117.6 billion
- POS transactions value also declined by 80.5 billion
- Internet web-payment value drops by N113.8 billion
Why it matters: The drop in POS transactions and other payment platforms indicate that Nigeria’s e-payment platforms could still be faced with challenges that are inhibiting growth in both the volumes and amount of transactions completed.
Nairamterics had earlier revealed that there has been a deluge of “dispense errors” and non-reversal of failed transactions at the Point Of Sale (POS) terminal and ATM.
“On a typically bad day, as much as 30,000 transactions can become botched, even as bank customers’ accounts are debited, thereby leaving the financial institutions and their clients at loggerhead.”
Note that the decline in transactions across major e-payment platforms in the first quarter of 2019 may have been due to the general elections that happened during the period. This is because business activities slowed down and affected the country’s growth during the period.
Upshots: Meanwhile, as at the time of filing this report, data obtained from the Nigerian Inter-Bank Settlement System (NIBSS) shows that out of the total volume of 318,233 transactions recorded, about 53,276 (19.94%) volumes failed. This implies that among other factors, the high failure rate of transactions must have contributed to the decline in transactions across e-payment platforms.
More efforts should be put in place by the agency as businesses and individuals are bearing the brunts of failed transactions. Also, it should be noted that efficient e-payment platforms are an integral part of the industrial revolution in the banking sector, which will trickle down to the small units and businesses in the economy.