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Tap To Phone; Replacement for POS Machine, Reduces Start-up Cost


CEM REPORT | It is no gain saying that the major infrastructure in the Nigerian payment space today is the POS infrastructure and the cost of an average POS machine is N50K borne by the acquirer or business driver (terminal owner).

The effect of this is that it drives the overall cost of the business on the acquirer side with little earnings to show. This is one of the reasons why it is a popular saying that Acquiring Business is a loss-making business.

Allow me to introduce a new technology designed to eliminate the cost in this equation.


‘’Tap To Phone’’ allows businesses to accept payments from any contactless card or mobile wallet right from their NFC-enabled devices.

This new technology primarily aims at the following:

  • reducing hardware costs,
  • preventing lost sales,
  • and improving cash flow – saving sellers’ money –and time.

In addition to the listed benefits, it also takes out the need for bulky POS devices.

A core benefit of this new technology to Nigeria is that it will help to reduce the cost of importation of POS terminals thereby retaining a bit of economic power that would have been expended on FX.

We anticipate a 20% cost reduction to Acquirers, at the very least, in the first year of it being fully operational.

With this new technology, there is expected to be an influx of applications for PTSP licenses due to the reduced entry barrier into the space.

Is it time to start the conversation around terminal owner fees in the existing fee share structure?

Should it now be called PTDA fee?

These are some of the questions we will need answers to in the nearest future.

Do you want to know how to reduce acquiring costs further?

Do you need more information about this?

Make me your plug.


Sent in by

Emmanuel odoh

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