2015 POS Adoption Study-Lagos State

The Nigerian payments system has evolved from a sole reliance on traditional paper-based instruments to using electronic channels. In Nigeria, the modern payments system started out being completely paper-based with the use of banks notes, payment orders, and cheques. In 1996, the payments system was modified to include card-based e-payment products, when the Central Bank of Nigeria (CBN) granted Allstates Trust Bank approval to introduce a closed system electronic purse called ESCA. This was followed by the introduction of ‘paycard’ by diamond bank in February 1997. By 1999, card based payment products assumed an open platform with authorization from the CBN for the floating of two card service companies – Smartcard Nigeria and Gemcard Nigeria Limited – by a consortium of over 20 banks.
In 2003, the CBN, in collaboration with the Bankers Committee, launched the first major initiative to modernize the payment system, granting approval to a number of banks to introduce international money transfer products, telephone banking and online banking via the internet on a limited scale. Today, virtually all banks have introduced electronic funds transfers (EFT), debit and credit cards,internet banking, mobile banking and deployed Automated Teller Machines (ATM). The Nigerian payments system has further evolved with the introduction of the Payments System Vision 2020, launched in 2007 to facilitate a wider range of electronic payment methods such as PoS terminals, facilitated by a wider range of service providers. This report provides insights from various stakeholders in the PoS value-chain as well as the perspectives of merchants and consumers on the adoption and usage of PoS in Nigeria.The perspectives of merchants and consumers provided in this report are restricted to phase 1 only i.e. Lagos State.

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