• By ComeUpStartup Editorial
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In Nigeria’s fast-growing payment ecosystem, Point-of-Sale (POS) devices have become a lifeline for millions of small businesses. Walk through any market today, and you’ll find agents handling cash withdrawals, transfers, and bill payments with a POS machine.

But every now and then, confusion arises — as in the viral story of a shop owner who bought a Moniepoint POS, closed down his business, and was surprised when the company insisted he either return the device or continue meeting weekly transaction targets.

“Why should I return something I bought with my own money?” he asked.

The answer reveals how POS deployment in Nigeria really works — and why entrepreneurs need to understand the difference between buying a device and buying a service.

The Regulatory Backdrop: Who Really Owns the POS?

Under the Central Bank of Nigeria (CBN) guidelines, only licensed entities such as:

• Banks
• Microfinance Banks (MFBs)
• Mobile Money Operators (MMOs)
• Payment Terminal Service Providers (PTSPs)

are authorized to deploy and manage POS terminals in Nigeria.

This means that, legally, the bank or licensed provider remains the “owner” of the terminal, not the merchant using it.

📖 CBN official guideline on agent banking and POS deployment makes it clear: merchants are “agents,” not terminal owners.

So even if you “pay” for a POS, you are actually paying for access to a service — the device is simply the medium through which that service is delivered.

Service, Not Sale: Why You Don’t Fully Own That POS

Here’s the reality:

When you sign up for a Moniepoint, OPay, Palmpay, or bank POS device, the money you pay is not a purchase price in the retail sense. Instead, it covers:

• The cost of configuration and setup (so the device works with the payment network).
• Ongoing software updates and maintenance.
• Customer support and troubleshooting.
• Access to the provider’s payment infrastructure.

In other words, you’re paying to join their ecosystem. The POS itself is a tool-on-loan, tied to their platform.

This is why providers impose conditions such as:

• Weekly or monthly transaction targets (to keep the terminal active).
• Mandatory returns if the device is inactive for too long.
• Geo-tagging requirements (as mandated by new CBN rules to track terminal locations).

From their perspective, idle devices represent wasted resources and potential regulatory risk.

Why This Model Exists

Some merchants argue: “But I paid for it, why can’t I keep it?”

The answer lies in risk, compliance, and cost:

1. Regulatory Compliance – Banks and fintechs are directly accountable to the CBN. If devices are misused for fraud, money laundering, or illegal transactions, it’s the provider — not the merchant — that faces penalties.
2. Fraud Prevention – Nigeria has one of the highest rates of payment fraud in Africa. Idle or untracked POS machines can be exploited by fraudsters, which is why providers tightly control distribution.
3. Business Model Sustainability – Providers make money not by selling hardware but by earning commissions on transactions. An inactive device means zero revenue but ongoing maintenance obligations.

Lessons for Founders: The Business Model Behind POS

For founders and startup enthusiasts, the POS debate offers a deeper business lesson:

• Hardware-as-a-Service (HaaS) – What looks like a product sale is actually a subscription-style model. You don’t own the asset outright; you’re renting access to a larger infrastructure.
• Customer Misconceptions – Many Nigerian merchants assume they “buy” a POS like they buy a smartphone. Smart startups must learn how to communicate value clearly to avoid this friction.
• Compliance as Strategy – In regulated industries like fintech, compliance isn’t optional; it’s baked into your business model. Companies like Moniepoint thrive because they balance growth with regulatory alignment.

The Bigger Picture: POS and Financial Inclusion

Despite the confusion, POS deployment has been one of Nigeria’s biggest financial inclusion success stories. According to CBN’s Financial Inclusion Report, POS agents now account for a significant share of financial transactions in rural and urban communities.

The model has:

• Expanded access to banking in underbanked areas.
• Reduced the cost of cash distribution.
• Created new income streams for micro-entrepreneurs.

But as adoption grows, so will the need for better communication between providers and merchants about what “ownership” really means.

Final Thought

If you’ve ever wondered why Moniepoint (or any POS provider) asks you to return an idle machine, the answer is simple: you never truly bought it.

You bought into a service — a service that requires active use, compliance with CBN guidelines, and ongoing support from the provider.

For merchants, that means treating the POS not as personal property, but as a partnership tool.
For founders, it’s a case study in how fintechs scale by aligning hardware, software, and compliance into one ecosystem.

In Nigeria’s payment revolution, the POS is less of a gadget and more of a gateway — and those who understand that distinction are better placed to thrive in the digital economy.