Influence of Point of Sale (POS) on the Nigerian Economy, 2003-2023

Abstract

Point of Sale (POS) has significantly impacted the banking sector of the Nigerian economy.  The study is retracted to Benin City, Edo State, Nigeria. The POS operation in Benin City generated employment for the operators and made banking services available to all parts of the society, thereby reducing the stress of going to the bank for their customers except in some serious transactions. The study adopted the Innovation Diffusion Theory and Humphrey, Pulley, & Vesala's Cashless Economy Theory to explain the rationale for e-banking in Nigeria. The study was exploratory and purely qualitative; it made use of the in-depth interview guide in eliciting the required responses, adopting purposive and convenience sampling techniques. It made use of 20 participants who are POS operators in Benin City. The study revealed that even though the POS system improves banking operational efficiency in Benin City by ensuring the availability of banking services to members of the public, it also faces some challenges like poor network connectivity and security risks to both the operators and the customers. The study concludes that the POS operation in Benin City needs support and a more secure environment for the operators to fully utilize the system. In this regard, the study suggested financial assistance to the operators by the government and the banks, improving network stability by the network providers, and improved security for the operators.

Keywords: Benin City, Challenges, POS Operators and Significant Impact.