The Impact of POS Transactions on Bank Operations and Consumer Satisfaction

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.

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