Nigeria: Paystack Innovates Offline Payments with Virtual Terminal

Paystack is making waves in offline payments with its latest product, the Virtual Terminal, offering an unconventional approach.

Traditionally, point-of-sale (PoS) terminals have been the go-to solution for cashless in-store payments. Paystack’s innovative solution eliminates the need for physical PoS machines while ensuring swift payment confirmations and a seamless checkout experience.

The African fintech company is confident that this new product will significantly reduce payment confirmation times, enhancing the overall shopping experience.

How Does Paystack’s Virtual Terminal Work?

Paystack’s website explains that stores can generate unique account numbers for each store attendant, enabling them to verify customers’ bank transfers without involving store managers.

These Virtual Terminal account numbers grant limited access to the store’s account, streamlining the payment process. This solution was developed in partnership with Titan Trust Bank, reducing bank transfer latency to under eight seconds.

It’s worth noting that Paystack also offers physical PoS machines, which were launched in November 2022.

While Ufeli believes that customers may favor bank transfers over PoS terminals, the growing number of PoS agents in Nigeria presents a different perspective.

As of December 2022, Nigeria boasted a total of 1.5 million PoS agents, with Opay accounting for over 500,000, constituting 37.17% of all PoS agents in the country.

Furthermore, data from the Nigeria Inter-Bank Settlement Systems (NIBSS) revealed that PoS transactions in the country surged from ₦3.56 trillion in the first seven months of 2021 to ₦4.61 trillion.

While Paystack’s Virtual Terminal introduces an innovative alternative to traditional PoS machines, only time will reveal whether customers lean toward bank transfers or card-based payments.