ffect of Moniepoint Microfinance Bank Point-of-Sale Services on the Financial Performance of Small and Medium Enterprises in Nigeria

This is the authors' abstract. We don't add key points for this paper.

This study examined the effect of Moniepoint Microfinance Bank Point-of-Sale (POS) machine services on the financial performance of Small and Medium Enterprises (SMEs) in Nigeria, using transaction volume, credit access, and operational efficiency as the basis. Specifically, the study sought to examine the effect of Moniepoint POS transaction value on the sales revenue of SMEs in Nigeria; ascertain the effect of Moniepoint POS-enabled credit access on the profitability of SMEs in Nigeria; and determine the effect of Moniepoint POS service reliability on the operational efficiency of SMEs in Nigeria. Relevant conceptual, theoretical, and empirical literature were examined. The study employed an ex post facto research design, supplemented by a survey of registered SMEs using Moniepoint POS terminals. Secondary data were sourced from Moniepoint Impact Reports, Central Bank of Nigeria (CBN) payment system statistics, Nigeria Inter-Bank Settlement System (NIBSS) reports, and the National Bureau of Statistics (NBS) SME surveys. Primary data were collected from 400 SME owners and managers across Lagos, Kano, and Enugu states using a structured questionnaire. Descriptive statistics, Pearson correlation, and Ordinary Least Squares (OLS) regression were employed in analysing the data. The study found that Moniepoint POS transaction value had a significant positive effect on SME sales revenue (β = 0.472, t = 5.318, p = 0.0002); that Moniepoint POS-enabled credit access had a significant positive effect on SME profitability (β = 0.389, t = 4.176, p = 0.0011); and that Moniepoint POS service reliability had a significant positive effect on SME operational efficiency (β = 0.415, t = 4.623, p = 0.0006). In conclusion, Moniepoint POS services exert a statistically significant positive influence on the financial performance of Nigerian SMEs across sales revenue, profitability, and operational efficiency dimensions, although challenges related to transaction failures, network downtime, and cash scarcity persist. The study recommended, among other things, that Moniepoint should deepen investment in POS terminal reliability and network infrastructure to minimise transaction failures, and that the CBN should integrate Moniepoint’s transaction-data-driven credit model into the broader national SME financing framework to expand formal credit access.