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Eid-El-Kabir: Nigerians witness many cases of PoS payment failure due to network disruptions

Posted by on August 2nd, 2020

It appears internet users may not heave a sigh of relief anytime soon, as network disruptions and technology glitches eat deep into their operations.

The users that were recently affected the most are bank customers and Point of Sales terminal operators, especially during the Eid-El-Kabir celebration.

About 23%, 309,016 of a total 1.3 million transactions done on Friday (as at 4pm), failed. Also, the failure rate hit 16.98%, as 385,960 out of 2.27 million transactions declined on Saturday.

These figures were obtained from the live transaction updates of the Nigeria Inter-Bank Settlement System (NIBSS).

According to the data, the issuer banks contributed the most to the failure of the transactions, as 68,697 and 32,230 of the failed transactions were attributed to errors on their platforms.

This was closely followed by errors emanating from the customers, which accounted for 37,034 and 65,619 of failed payments respectively.

The backstory: Meanwhile, Nairametrics reported, last month, when the value of transactions done across Point of Sale (PoS) channels in Nigeria increased from N1.14 trillion recorded between January and May 2019 to N1.64 trillion within the same period in 2020.

The report implies that the total value of transactions from PoS machines rose by N500 billion, which represents a 43.8% increase in five months.

The total volume of PoS transactions also increased from 152.6 million to 228.86 million within the period under review. This indicates that the volume increased by 76.26 million, or 49.9%.

Back to failure rates: The statistics indicated that 33,260 and 45,099 errors emanated from the acquirer banks and 19,728 and 74,000 errors, which originated from the processors, also contributed significantly to the failed funds transfer and payments carried out by retailers and merchants.


What it means: The development indicates that some of the failed transactions stemmed from network disruptions and technology glitches. It is also an indication that the transactions declined during peak transaction periods and festive seasons.



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