Big changes are happening for Nigeria’s 1.9 million PoS agents. They’re now required to register with the Corporate Affairs Commission (CAC) to improve honesty and reduce fraud.
Until now, fintech companies like Moniepoint, OPay, and PalmPay would sign up agents by collecting basic info like names and phone numbers, and then give them PoS devices to use for transactions at their shops. These fintechs are the main players in this agent banking business.
But there’s a problem: fraud with PoS machines is going up. A report from the Nigeria Inter-Bank Settlement System Plc (NIBSS) says PoS terminals were involved in over a quarter of fraud cases in 2023.
Earlier this year, the Central Bank of Nigeria (CBN) and the Association of Mobile Money and Banking Agents of Nigeria (AMMBAN) teamed up to fight fraud by adding a new feature to PoS machines.
PoS agents are everywhere because it’s easy to get started, especially for small shop owners looking for extra income. Fintech startups often give out PoS machines at discounted prices to attract more agents.
But now, with this new rule, agents have to register their businesses, which could make it harder to sign up. Business registration can be complicated and might need a lawyer. In response, companies like Moniepoint and PalmPay are teaming up with CAC to make the registration process easier for agents.
It’s a race for these fintech companies to stay ahead and keep signing up agents, who are a big part of their business. PalmPay, for example, recently partnered with CAC to register thousands of businesses.
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