United Bank for Africa (UBA) Plc is making a significant comeback in Nigeria's rapidly expanding Point of Sales (PoS) payment market with plans to deploy 46,000 upgraded terminals, aiming to recapture market share from fintech companies that have dominated the sector in recent years.
The banking giant has already rolled out over 6,000 Redpay PoS terminals since January 2025, with an additional 40,000 terminals expected to be deployed in the coming months. This strategic move comes as UBA seeks to reassert itself in a market where fintech companies like Moniepoint, OPay, and PalmPay have gained significant traction.
Nigeria's PoS market has experienced explosive growth, with transaction volumes surging from ₦2.3 trillion ($1.44 billion) in 2018 to ₦79.5 trillion ($49.7 billion) in 2024 – representing a remarkable 3,356.5% increase, according to data from the Nigeria Inter-Bank Settlement System (NIBSS).
Combining Bank Trust with Fintech Speed
UBA's Redpay terminals are designed to combine the speed and convenience typically associated with fintech solutions while leveraging the trust and reliability of a traditional banking institution. This hybrid approach appears to be resonating with merchants.
"Merchants commend the terminals' ease of use, transaction speed, 100% success rate for transfers, and enhanced visibility," said Olukayode Olubiyi, UBA's head of digital banking. "They added that flexibility and reliability have significantly improved their daily operations."
Merchants interviewed have highlighted specific advantages of the Redpay system. Omobolanle Salami, a Lagos-based perfume retailer who switched from Moniepoint to UBA's terminal in February, praised the ability to monitor transactions and perform settlements remotely via laptop or phone.
"While Moniepoint allows on-terminal transaction viewing, Redpay offers the added convenience of remote access," Salami explained. "This transaction visibility empowers me to make better business decisions."
Enhanced Features and Security
Since January, the new Redpay terminals have processed over ₦25 billion ($15.6 million) in transactions, with strong adoption among small and medium enterprises in urban and peri-urban areas.
Security has been a key focus for UBA's new offering. The terminals are Payment Card Industry Data Security Standard (PCI-DSS) compliant and feature end-to-end encryption, tokenisation, secure PIN entry, and remote terminal management capabilities.
Beyond basic payment processing, the Redpay terminals offer additional value-added services including agency banking via UBA's revamped MONI App, real-time fund transfers, BVN/NIN-based account opening, airtime and bill payments, instant settlements into digital wallets, and access to analytics dashboards for improved business visibility.
Banks Fighting to Regain Lost Ground
UBA's aggressive push into the PoS market reflects a broader trend of traditional banks working to reclaim territory lost to fintech companies. Banks like First Bank, Access, and UBA were early players in Nigeria's PoS landscape following the Central Bank of Nigeria's introduction of the cashless policy in 2012.
However, fintech companies subsequently captured significant market share through agent banking networks and user-friendly services. According to Enhancing Financial Innovation & Access (EnEFInA), agency banking has helped increase Nigeria's financial inclusion rate from 58% in 2020 to 64% in 2023.
The key question now is whether UBA can successfully scale its operations to deliver consistent performance, merchant satisfaction, and continued innovation across its planned network of 46,000 terminals, potentially reshaping Nigeria's competitive PoS landscape once again.
