Point of Sale Terminal Connectivity

Point of Sale (PoS) Terminals have revolutionized payment collection for merchants and purchasing for customers in many parts of the world. However, to operate effectively they require a stable fixed-line network. In comparison, countries that still rely on cash are significantly disadvantaged.
There are basic disadvantages such as security where both merchants and clients must carry significant amounts of cash around in order to operate. In addition, the necessity of using cash to purchase suppresses the buying power of the purchaser and therefore has a detrimental effect on the overall economy. Cash economies make tax collection much harder and, while this may be an advantage to stakeholders in the short term, it ultimately has an adverse effect on economic development and growth of the wider economy.

The Nigerian economy is too heavily cash-oriented in transactions of goods and services. This is not in line with the global trend, considering Nigeria’s ambition to be amongst the top 20 economies of the world by the year 2020. Furthermore, it is estimated that about 65% of the cash in circulation in the Nigerian economy is outside of the banking system presently, thus severely limiting the impact of the Central Bank of Nigeria’s (CBN) efforts at price and economic stabilization.

Also, the huge volume of cash transactions, impose tremendous costs to the banking sector and, consequently, the customer, in terms of cash management, frequent printing of currency notes, currency sorting and cash movements. As the volume of cash in circulation (CIC) grows, so does the cost of cash management to the financial system which is estimated to reach $1.2 Billion in 2012 according to CBN.
To address these problems, the CBN, in collaboration with the Bankers’ Committee, has therefore imposed a cash deposit/withdrawal policy (cashless/cashlite policy) aimed to achieve an environment where a higher and increasing proportion of transactions are carried out through Cheques and Electronic Payments (e-payments), in line with the global trend. This new cash withdrawal policy will ensure that a larger proportion of currency in circulation is captured within the banking system, thereby enhancing the efficacy of monetary policy operations and economic stabilization measures.

To give striking effect to the CBN cashless initiative, the apex bank is working with stakeholders to ensure that appropriate environment is created for its successful take off and implementation. Accordingly, enforcement of POS usage to reduce the volume of traditional cash transaction has commenced in Lagos ( commercial capital of Nigeria) and is scheduled to take off in Abuja by January 2013. The experience so far recorded in Lagos has however been a source of concern as the POS involved are connected using wireless technology.

Fixed line connectivity platform is the most optimized network connection platform for POS based on the terminal operational design. The use of the wireless platform for the commencement of POS in Lagos is therefore a child of necessity occasioned largely by the demise of NITEL.
This experience will certainly improve significantly when the POS usage commences in Abuja by 2013 using fixed line dial-tone infrastructure already installed by Voix Networks. Major merchant locations and commercial centers like markets, shopping malls, hotels, etc in Abuja have already been connected and activated on Voix Networks platform in readiness for POS usage. Also POS connectivity between Voix Networks, Nigerian Inter-Bank Settlement System (NIBSS) and Banks have been successfully tested and some banks are already taking advantage of this platform to start rolling out POS at their customer locations ahead of the 2013 date.

Each time a point of sale Terminal is used in a transaction, 1.25% of the transaction value is deducted from the merchant. This is known as Merchant discount. This amount then is split between five parties involved in the transaction though one party may be the supplier of more than one of these services. The parties are 1) the acquiring bank (the bank that warehouses the funds of the merchant), 2) the terminal owner/operators, 3) the issuing bank (the bank from which the funds are deducted, 4) the switch owner (who transfers the money from one bank to another, and 5) the processor (who operates the telecommunication link between parties).

Voix Networks has the opportunity to generate revenue either as a terminal operator and/or as a processor. Voix Networks also has the option of appointing a bank on an exclusive basis to operate the terminals. On this basis, the company will benefit from a revenue share of not only the terminal operator’s commission but revenue generated if that bank is either the acquiring or issuing bank in the process.

Our Mission

Voix Networks Limited was established to provide services within the regulatory frame work under the Nigerian Communication Commission. The company also provides customized and general services.

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