United Bank for Africa (UBA), a prominent Nigerian banking institution, has re-entered the nation’s rapidly growing Point of Sale (PoS) payment sector with a bold move. The bank has rolled out 46,000 advanced PoS terminals to reclaim market share previously overtaken by fintech companies. UBA’s new terminals are designed to cater to small businesses and retail merchants, providing them with enhanced features and increased reliability.
Historically, UBA was a key player in the PoS market but has faced intense competition from fintech firms such as Moniepoint, OPay, and PalmPay. In response, the bank has already distributed more than 6,000 Redpay PoS terminals since the beginning of 2025, with an additional 40,000 terminals expected in the coming months. The PoS market in Nigeria has experienced explosive growth, with transaction values reaching ₦79.5 trillion ($49.7 billion) in 2024, a dramatic increase from ₦2.3 trillion ($1.44 billion) in 2018. This rise has been primarily fueled by fintechs, which have attracted merchants with quick settlements, improved devices, and streamlined onboarding.
Despite the surge in fintech dominance, UBA aims to merge the speed and convenience of fintech with the trust and security associated with a traditional bank. The bank’s Redpay terminals have been praised for their ease of use, fast transaction speeds, and high success rates. This combination is seen as a more reliable long-term option for many small business owners.
One merchant, Omobolanle Salami, who switched to UBA’s terminal from Moniepoint, highlighted the advantage of remote transaction monitoring, which she said helped her make better business decisions. Similarly, another Lagos-based retailer, Dhikrulahi Hammed, emphasized Redpay’s flexibility and security, particularly the ability to monitor transactions remotely via mobile devices.
Since January, UBA’s Redpay terminals have processed over ₦25 billion ($15.6 million) in transactions. Adoption is particularly strong among small and medium enterprises (SMEs) in urban and peri-urban areas. Due to improved reliability and performance, the terminals are also being welcomed by larger retailers, such as supermarkets and pharmacies.
This move by UBA comes at a time when fintech has been leading the way in customer satisfaction, especially in transaction speed and platform reliability. However, UBA is betting that its integrated solutions—combining banking services with PoS technology—can bridge the satisfaction gap. The Redpay terminals offer added benefits, including secure remote management, PCI-DSS compliance, tokenization, and secure PIN entry.
Additionally, these terminals are bundled with features like agency banking through the revamped MONI App, real-time fund transfers, and instant settlements to digital wallets, further enhancing their appeal to merchants. UBA’s Redpay terminals also have analytics tools to help merchants gain insights into their business operations.
While fintechs have reshaped Nigeria’s payment landscape, UBA, along with other traditional banks, played an essential role in the early development of the PoS system, particularly after the Central Bank of Nigeria’s 2012 cashless policy. Today, banks like UBA are working hard to regain market share from fintechs, aiming to improve financial inclusion, which has risen from 58% in 2020 to 64% in 2023. The success of UBA’s 46,000-terminal rollout will depend on its ability to deliver exceptional performance, merchant satisfaction, and continuous innovation.
Credit: TechCabal
