Cash-lite: Operators to spend N315bn on ATM, PoS deployment

ATM Machine

As the January 1, 2012 take-off of the cash-lite economic system in Lagos draws closer, stakeholders, including Deposit Money Banks and Payment Terminal Service Providers licensed by the Central Bank of Nigeria, will spend N315bn to deploy new Automated Teller Machines and Point of Sale terminals, investigation has revealed.

Specifically, the banks will spend over N225bn on deploying 75,000 new ATMs in all the nook and crannies of the country.

This will be a fallout of the recent directive by the CBN that the country’s 21 banks must deploy 75,000 new ATMs from 2012 to 2015 as part of the apex bank’s strategies aimed at strengthening available modes of e-Payment as well as boosting the cashless initiative in the country.

The PTSPs may also have to spend over N90bn to deploy 450,000 PoS terminals across the country between now and 2015.

Though available industry data revealed that the low-end ATMs cost about N2m each, our correspondent gathered that the banks were most likely going to opt for high-end ATMs manufactured by NCR, which cost N3m per unit.

Aside for its advanced functionality, our correspondent gathered that banks favoured the NCR-manufactured ATMs because they were sure of getting local support and after sale services whenever the need would arise.

As such, the banks will need to spend N225bn on the 75,000 ATMs at the cost of N3m per unit.

Our correspondent also gathered that the cost of deploying the new ATMs might also go up as the cashless initiative was expected to drive the deployment of more advanced ATMs specifically designed for high transaction volume with intelligent cash deposit solution.

The CBN had recently lamented that the 20 per cent import duties charged by the Nigerian Customs Services for the PoS terminals imported by the banks was delaying onward deployment of the terminals in the country.

Speaking on the new ATM deployment, the CBN Deputy Governor, Mr. Tunde Lemo, in a keynote address at the Committee of e-Banking Industry Heads’ seminar in Lagos, recently, said, "Further deployment of ATMs is being encouraged to drive more cashless transactions as opposed to its traditional cash dispensing functions."

Our correspondent had gathered that the CBN, as part of its efforts to drive the cashless initiative, had concluded plans to deploy about 450,000 PoS terminals across the country by 2015.

More specifically, investigation revealed that the CBN planned to have over 100,000 PoS terminals deployed by 2012 and another 350,000 by 2015.

Investigations also revealed that Payment Terminal Service Providers might have to spend over N90bn to deploy 450,000 Point of Sale terminals across the country between now and 2015.

According to e-Payment analysts, who are very familiar with the cost of various ranges of terminals, an average PoS terminal costs between N50,000 and N200,000.

Though, they added that hybrid PoS terminals cost between N120,000 and N150,000, they, however, said biometric PoS terminals were being sold at N200,000 each.

Bearing that in mind, they said service providers might have to spend N200,000 on each of the 450,000 biometric PoS terminals to be deployed across the country.

When multiplied by 450,000 units expected to have been deployed in the country by 2015, analysts said service providers would have to cough out N90bn for PoS deployment in Nigeria. (Credit: Punch)

still in need of some information? search this site:

LOVE THE ARTICLE ABOVE?
Receive Updates: subscribe to Imo Herald in a reader or sign up for Free Email Updates