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By Kehinde Aderemi
Olusola Ibikunle works in Victoria Island. Every day, he leaves his Adamo, Ikorodu home at 4am and catches a bus to VI.
On a Monday morning, he was on his way to the office when he suddenly discovered that he had lost his purse with his ATM card inside it.
With no cash and no card, he became worried because no bank would open until 8am, and he had to be at work in VI in a few hours. The only option left for him was to get a Point of Sale (POS) operator. Luckily, he found one at the bus park in Ikorodu garage. The POS operator became his saving grace as he was able to transfer the sum of N5000 and collect the cash he needed for his transport to VI.
“I lost my purse with my ATM card last Monday. It was a few minutes to 5 o’clock in the morning and I thought it wasn’t possible for me to get a POS operator at that time of the day.
“But I was surprised that many people were already outside trying to find their way to their respective offices, and many were also doing their legitimate businesses with ease,” he said.
Ibikunle’s experience with the POS operator captures the various scenarios that play out daily across Nigeria.
According to him, no bank will open that early and most times, the ATMs are either out of cash or out of service. But the POS agent is already at work.
More than just withdrawals
An accountant with one of the microfinance banks, Taofeek Adekoya, told our correspondent that POS is not just creating convenience, but it is also helping to keep body and soul together as a new survival method.
“Apart from money transfer and withdrawal, POS also offers several services like payment of bills, including recharge cards and other urgent services. It also offers millions of Nigerians jobs and that has really changed the narrative of banking in Nigeria,” he explained.
He pointed out that the banking sector is evolving at a very fast pace, even as he noted that the emergence of digital banking has saved customers from paying unregulated amounts as bank charges.
“There are no hidden charges. The interest rate charged by digital banks is lower than what traditional banks charge customers.
“All the banking charges including VAT, COT, stamp duties and even charges on electronic transfers have been reduced drastically by digital banks. That is why a large fraction of Nigerians now bank with them because they have made banking easy and fast.
“Ten years ago, banking meant a building. You queued, collected a token, and waited. Today, banking is a table, an umbrella, and a small machine that prints receipts.
“It all started with the Central Bank’s cashless policy and Agent Banking guidelines in 2013.
“The major milestone in the banking sector was noticeable because instead of building expensive branches, banks appointed agents. The agents already had the trust of the community, and the banks provided the basic technology.
“Today, Nigeria has over 2.7 million POS agents — more than all bank branches and ATMs combined. And over 20 million people are engaged in POS businesses across Nigeria. They do withdrawals, transfers, bill payments, and sell recharge cards. During cash scarcity, they became the only place to get cash.
“The impact is clear. Financial inclusion has grown because agents meet people where they are. They open early, close late, and speak the local language.
“Banks tried to bring people to the bank. POS brought the bank to the people. And that is rewriting Nigeria’s banking story,” he said.
Banks’ traffic dwindles
Alhaja Nimota Ayoka, a trader at Mile 12 Market, said POS has created a new world for people like her. She said she couldn’t remember the last time she visited a bank in many years. According to her, anytime she needs money, POS operators are always available, and she doesn’t have to experience the problems associated with traditional banks.
“With POS operators, cash is always available, irrespective of the amount you need. Filling stations, motor park managers and conductors provide them with cash at every given time, and they dispense cash even more than what the ATMs of traditional banks can dispense in a day.
“So, POS has made a whole lot of difference in the lives of the people. The business has also decongested the banking halls in such a way that there are no more long queues in banks now,” she said.
With all the positives, there is no doubt that POS operators are contributing their quota to the development of banking in the country.
No resumption, no closing time
Mrs Oluwayemisi Stella is a major distributor of newspapers in Ikorodu and she also serves the community as a POS operator.
According to her, she resumes at her point of sale as early as 5am to distribute papers to various vendors in the area, and she also operates her POS business.
“One of the advantages of being a POS operator is that you have no resumption or closing time. It all depends on the location and the situation of the day. You can’t go to the bank earlier than 8 o’clock in the morning and you can’t go after 4pm, except on special occasions.
“What that means is that banks have specific resumption and closing times. But here, I can come by 5am and close by 12 midnight.
“Another thing is that POS business allows you to do other businesses within the same vicinity. You can be selling foodstuffs and still operate POS. You can be a dry cleaner, tailor, barber and still do POS business.
“Here in Ikorodu, you see POS operators standing side by side doing their business. Each and every one of us will definitely make profit as long as you are not lazy or arrogant. It also gives you the opportunity to do side hustles.
“Even there are students in our higher institutions now who make their living through POS business within the school premises.“Millions of Nigerians now eke out a living as POS operators. It has created employment for millions of people. That is why you see operators at every bus stop, garage and in the nooks and crannies of our society,” she said.
Opportunities and risks
For Babatunde AbdulAzeez, a bookseller, POS business is beyond what it means to ordinary people. He said POS is nothing but an opportunity to augment one’s income. According to him, he has been selling different kinds of books for more than 15 years, but he started the POS business about five years ago. AbdulAzeez explained that a serious POS operator located in a strategic place can make as much as N10, 000 a day or more.
“POS business gives the operator the opportunity to meet different people at different times. Though it also has a lot of challenges, it is a business that opens doors of opportunities. A POS operator in a good location can make more than N300, 000 a month.
“POS business needs total concentration because you deal with people and money. It is not for lazy people. You have to be on alert always because some of your customers are there to defraud you. Some are there to cheat you. So you must be ready to withstand different situations at all times.
“A POS operator is like a ready-made banker for people who are in need of urgent money to transfer. A relatively young family man or woman can live on POS business and cope in the present situation in the country.
“Trust is a major ingredient in the POS business. People trust you with their money and once you lose their trust, you can no longer enjoy the business,” he said.
He mentioned some of the challenges he has faced in the course of doing the business. Part of the challenges, he said, has to do with failed transactions resulting from poor bank networks.“I have lost a lot of money through wrong transactions and poor network. I once engaged a young lady as a POS operator and she later ran away with my money. But in spite of the challenges, I still remain in the business because it pays more than doing nothing.
“Despite the challenges, POS still gives a lifeline to both operators and people in our society because most times it saves you from banking stress and difficulties.
“For instance, a very intelligent 10-year-old boy or girl can operate a POS. A man or woman of over 60 years can also do POS business because it doesn’t need much to get started in terms of money, structure or facility, and that is why many people are rushing every day to start it.
Even business owners now operate POS in order to reduce fraud and other business burdens, as well as to ensure easy access to cash,” he said.
