IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 11 NO. 1 2025
DOI: 10.56201/ijbfr.vol.11.no1.2025.pg105.118

---

The Impact of POS Transactions on Bank Operations and Consumer Satisfaction

Yakubu Adamu PhD, Alhaji Kawugana PhD, Shuaibu Said Abdullahi

---

Abstract

The increasing adoption of Point of Sale (POS) transactions has significantly influenced banking operations and customer satisfaction in Nigeria. This study examines the impact of POS transactions on bank operations and customer satisfaction in selected deposit money banks in Bauchi Metropolis. The research evaluates how POS usage affects service efficiency, transaction speed, revenue generation, and customer convenience. It also investigates challenges such as transaction failures, fraud risks, and network disruptions. A mixed-method approach was adopted, combining survey questionnaires distributed to bank customers and POS operators with interviews conducted with bank officials. Data analysis was carried out using descriptive statistics and inferential analysis to assess the relationship between POS transactions and customer satisfaction. Findings reveal that POS transactions have improved financial accessibility, reduced overcrowding in banking halls, and enhanced banking convenience. However, persistent issues such as network failures, high transaction charges, and fraud risks negatively impact customer experience. The study recommends that banks invest in stronger network infrastructure, customer-friendly policies, and security measures to enhance POS transaction reliability. This study contributes to the existing literature by providing empirical evidence on the role of POS in banking operations and customer service in Bauchi Metropolis. It also offers policy recommendations for improving digital banking services in Nigeria.

keywords:

POS transactions, bank operations, customer satisfaction, financial accessibility

---

References:

Adebayo, S., & Yusuf, O. (2021). The Role of POS Transactions in Enhancing Financial
Inclusion in Nigeria. International Journal of Finance and Banking Research, 7(2), 45-
Central Bank of Nigeria (CBN). (2022). Cashless Policy and the Growth of POS Transactions
in Nigeria. CBN Research Bulletin, 5(1), 20-35.
Eze, C., & Opara, F. (2020). Digital Payment Systems and Their Impact on Customer
Satisfaction in Nigerian Banks. African Journal of Business and Economic Research,
16(4), 112-130.
Nigeria Inter-Bank Settlement System (NIBSS). (2023). Annual Report on Digital
Transactions in Nigeria. Retrieved from www.nibss-plc.com.ng.
Olayemi, T., & Adekunle, J. (2019). The Adoption of POS Transactions and Its Effects on
Banking Performance in Nigeria. Journal of Financial Innovation and Economic
Growth, 10(3), 87-105.
PricewaterhouseCoopers (PwC). (2023). The Future of Digital Payments in Africa: Trends
and Opportunities. Retrieved from www.pwc.com
Statista. (2023). POS Transaction Growth in Nigeria (2015–2023). Retrieved from
www.statista.com.
Musa, H. (2021). POS Transaction Challenges and Customer Satisfaction in the Nigerian
Banking Sector (Master’s thesis, University of Lagos).
Web Sources & Industry Reports 7..8

DOWNLOAD PDF

---

Back