In 2024, POS transactions rose to an all-time high of 81% to #18.15trn. Retailers who had invested in POS systems won customers over, while those who didn’t lost customers at checkout.  

Consumers everywhere want almost the same thing. And there’s no retail store you get to in any busy supermarket across Nigeria that you’ll not notice something common about them. Consumers expect fast, secure, and seamless payments, and they won’t tolerate anything less. Anything short of the above, especially slow checkout, costs you sales and damages your reputation. 

This post explores why fast, secure digital payments matter for your business’s growth.

The Shift from Cash to Digital Payments

Cash transactions dropped from 91% in 2019 to just 40% in 2024. This is definitely a historic shift and it can only continues to drop further. Customers hardly want to pay with cash except in very critical situations when there’s network downtime or their cards decline.

What’s driving this change?

• Smartphone penetration with mobile payment adoption increasing 60% year-over-year among 18-34 year olds
• Government cashless policies, including CBN withdrawal limits
• Fintech innovation from PayCliq to Kashzoo, is deploying millions of terminals
• COVID-19’s lasting impact on contactless payment preferences
• Customer convenience eliminates the need to carry large amounts of cash

Why POS Infrastructure Really Matters

• Your POS system is the final impression you make on every customer: Customer expectations have changed. Four out of five customers won’t wait more than 5 minutes at checkout. If your POS is slow or unreliable, they’ll shop elsewhere.
• Transaction failures are expensive: Card failure rates range from 13% to 15%. Each failed transaction frustrates customers and often results in abandoned purchases.
• Competition is fierce: There are about 3.7 million POS terminals across Nigeria. Hence, only retailers with reliable checkout gain competitive advantages.
• Digital payments reveal insights: Transactions generate valuable data for tracking sales, managing inventory, and making smarter decisions.
• Faster Checkout Times Build Customer Loyalty: Modern POS systems process contactless payments up to 10 times faster than traditional methods.

Why speed matters

Below are significant reasons;

• Positive experiences: Quick checkout increases customer satisfaction and repeat visits
• Higher sales volume : You can serve more customers per hour during peak times
• Better staff efficiency: Less troubleshooting, more customer service
• Easier training: Fast, intuitive systems help new staff learn quickly
• Reduced Transaction Failures Protect Revenue: Card payment failure rates range from 13-15%, while NIBSS Instant Payments maintains just 0.7% failure rates. Infrastructure quality directly impacts success.

Why reliability matters

• Half of failures are preventable since 50% stem from system glitches and network problems
• Failed transactions leads to lost time, frustrated customers, slowed checkout lines
• Customer trust depends on it
• Strong connections maintain service during peak traffic
• Providers with reliable networks report significantly fewer problems and higher customer satisfaction.

POS Infrastructure and Business Growth

Reliable POS infrastructure supports growth beyond processing payments. Digital systems create automatic records, simplifying accounting and tax compliance. Integrated POS systems connect payments with inventory management, showing real-time stock levels and preventing stockouts.

Additionally, modern POS systems offer multiple payment options like cards, mobile money, transfers, QR codes that leads to completed purchases.

Key Features Retailers Should Look For

Here are key features to look out for when investing in a modern POS for your business

• Fast transaction processing in under 30 seconds with contactless support like PayCliq
• Documented reliability and high network uptime
• Multiple payment methods like cards, mobile money, bank transfers, USSD, and NQR codes
• Offline capability to store transactions during outages and sync when connected
• Inventory integration to update as items sell
• User-friendly interface for quick staff learning
• Strong security that ensures encryption, compliance, and fraud protection
• Quality customer support that is responsive to help minimises downtime
• Detailed reporting of sales data, trends, and analytics for informed decisions
• Scalability to handle increased volumes as you grow

Final Thoughts

By 2030, cash is projected to decline by 32%, with digital payments making up 47% of POS transactions. Digital payments aren’t the future they’re the present and they are changing the Nigerian retail market. Retailers must invest in a reliable POS system like PayCliq today and position themselves for success. Having a faster checkout will reduce transactions failures, enhance customer experiences, and scale your business.

Start by evaluating your current POS performance. Track failure rates, measure checkout times, and listen to customer feedback. Then compare modern alternatives like PayCliq designed for Nigerian retail. Choose your POS infrastructure wisely, invest adequately, and watch your retail performance transform.