United Bank for Africa (UBA) Plc, a prominent Nigerian banking institution, is making a strategic push to reclaim its position in Nigeria's thriving Point of Sale (PoS) payment sector. The bank is deploying 46,000 advanced terminals, aiming to win back small businesses and retail merchants who have increasingly turned to fintech solutions.
The Evolving Landscape of Nigerian PoS Payments
Nigeria's PoS market has experienced exponential growth in recent years. According to the Nigeria Inter-Bank Settlement System (NIBSS), transactions processed through PoS terminals surged from ₦2.3 trillion ($1.44 billion) in 2018 to a staggering ₦79.5 trillion ($49.7 billion) in 2024, representing a 3,356.5% increase. This remarkable expansion has been largely propelled by fintech companies such as Moniepoint, OPay, and PalmPay. These innovators built extensive agent networks and attracted merchants with promises of instant settlements, faster devices, and streamlined onboarding processes.
UBA's Strategic Comeback with Redpay
Once a key player in the country's PoS market, UBA is now actively working to reassert its presence amidst this intensified competition. The bank has already deployed over 6,000 of its new Redpay PoS terminals since January 2025, with an additional 40,000 expected to be rolled out in the coming months.
With Redpay, UBA aims to offer a compelling hybrid solution that combines the speed and efficiency typically associated with fintechs, alongside the inherent trust and reliability of a traditional bank. For many merchants, this integrated approach presents a potentially superior long-term value proposition.
Merchant Testimonials and Tangible Benefits
Early adopters of UBA's Redpay terminals have expressed significant satisfaction. Olukayode Olubiyi, UBA’s Head of Digital Banking, noted in an email that "Merchants commend the terminals’ ease of use, transaction speed, 100% success rate for transfers, and enhanced visibility." He added that the improved flexibility and reliability have substantially enhanced their daily operations.
Omobolanle Salami, a Lagos-based perfume merchant, shared her positive experience after switching to UBA’s free terminal in February from Moniepoint. She highlighted the ease of monitoring transactions and performing settlements remotely via her laptop or phone, a crucial improvement for her business. "While Moniepoint allows on-terminal transaction viewing, Redpay offers the added convenience of remote access," Salami explained. This increased transaction visibility empowers her to make better business decisions, such as optimizing product allocation and advising customers on banks with less downtime for transfers.
Dhikrulahi Hammed, an electronics dealer in Lagos who utilizes Opay, Moniepoint, and Redpay terminals, also attested to Redpay's superior flexibility and security on the go. "Redpay’s remote transaction monitoring on phones/laptops is a significant advantage for security and tracking earnings to prevent discrepancies," Hammed stated, emphasizing that Redpay’s remote mobile access, even when away from the shop, is a key differentiator.
UBA reports that its new Redpay terminals have already processed over ₦25 billion ($15.6 million) in transaction value since January. Adoption has been particularly strong among Small and Medium-sized Enterprises (SMEs) in urban and peri-urban areas, with retail merchants like supermarkets and pharmacies also benefiting from improved transaction reliability and uptime.
Bridging the Customer Satisfaction Gap
UBA's renewed focus on PoS solutions comes at a time when traditional banks are facing a widening gap in customer satisfaction compared to fintechs. A 2024 KPMG report indicated that fintechs outperformed banks across various stages of the customer journey, particularly in transaction speed, platform reliability, and feature variety. UBA is banking on a more integrated solution – one that seamlessly merges payments with comprehensive banking services – to bridge this divide.
Onyebuchi Akosa, UBA’s Chief Information Officer, elaborated on this strategy: "Redpay combines a user-friendly interface with backend inventory and store management, all tied into UBA’s wider retail ecosystem." He further emphasized the inherent advantages of a bank, stating, "We also offer the trust, reach, and regulatory stability that many fintechs can’t replicate."
Enhanced Security and Value-Added Features
L-R: Gbolabo Cole; head, PoS services and web payments, UBA, Alero Ladipo, group head, marketing and corporate Communications, UBA, Shamsideen Fashola, group head, retail and digital banking and Olukayode Olubiyi, head, digital banking during the unveiling of UBA’s improved Point of Sale (PoS) terminal and the UBA MONI App at the banks’ corporate head office, in Marina, in April 2025.
Security is a paramount concern for UBA. With an increase in fraud across various PoS platforms, the bank has ensured that its new devices are Payment Card Industry Data Security Standard (PCI-DSS) compliant. These terminals are equipped with end-to-end encryption, tokenization, secure PIN entry, and remote terminal management, providing a robust security framework.
Beyond core payment processing, the upgraded Redpay terminals come bundled with a suite of value-added features. These include agency banking through the bank’s revamped MONI App, real-time fund transfers, BVN/NIN-based account opening, airtime and bill payments, and instant settlements into digital wallets. Olubiyi highlighted an additional benefit: "Merchants also get access to analytics dashboards for better business visibility and decision-making."
The Road Ahead: Scale and Innovation
While fintechs have undeniably reshaped the Nigerian payments landscape over the past five years, it is worth remembering that traditional banks like First Bank, Access, and UBA were instrumental in shaping the early terrain. The Central Bank of Nigeria's (CBN) introduction of the cashless policy in 2012 spurred banks to deploy early-generation PoS systems. However, the subsequent wave saw fintechs capturing underserved markets through agile agent banking models and frictionless services.
Organizations like Enhancing Financial Innovation & Access (EnEFInA), a non-profit dedicated to financial inclusion, credit agency banking with significantly boosting Nigeria’s financial inclusion rate from 58% in 2020 to 64% in 2023. Now, traditional banks are actively striving to regain lost ground.
The critical question for UBA moving forward is whether it can consistently deliver on its promises of performance, merchant satisfaction, and continuous innovation, especially with the ambitious deployment of 46,000 terminals across the country. The success of Redpay will undoubtedly be a key indicator of traditional banks' ability to compete effectively in Nigeria's dynamic digital payments ecosystem.