For FairMoney, every PoS terminal is a future lending opportunity

For millions of Nigerian merchants, every Point-of-Sale (PoS) terminal is not just a machine for processing transactions, but a lifeline for accessing credit. This is the new reality for entrepreneurs who have traditionally struggled to prove their creditworthiness to lenders. FairMoney Microfinance Bank, the digital lender behind this innovation, is using PoS terminals to solve one of lending's oldest problems.

The traditional PoS industry in Nigeria has grown exponentially over the past two decades, with transaction values skyrocketing from ₦946.22 million ($695,469) in 2007 to ₦ 10.51 trillion ($7.73 billion) in 2025. Companies like Moniepoint, OPay, and PalmPay have aggressively expanded their merchant networks, turning PoS terminals into critical infrastructure for millions of small businesses. However, for FairMoney, the PoS terminal is no longer just a payment product, but an underwriting tool.

Henry Obiekea, managing director at FairMoney MFB, revealed in an interview that the bank is deliberately targeting merchants whose payment histories can eventually become lending opportunities. This approach stands in contrast to how the Nigerian PoS industry grew, driven by fintechs that focused on aggressively expanding their merchant networks and building one of Nigeria's fastest-growing payment businesses. For FairMoney, every PoS terminal is a future lending opportunity. As payments become increasingly commoditised, some fintechs are discovering that the real value of a merchant relationship lies less in transaction fees than in the data those payments generate.

Founded in 2017, FairMoney built its business on unsecured consumer loans before discovering that many borrowers were using those loans to finance small businesses. A substantial number of customers that we had, that were taking loans, were utilising those loans for business activities, Obiekea said. This shift in focus has led FairMoney to reposition its PoS terminals as a tool for underwriting small businesses. With over 100,000 devices deployed, FairMoney is poised to revolutionise the way small businesses access credit in Nigeria.

As we move forward, it's clear that FairMoney's approach will disrupt the traditional lending landscape in Nigeria. With its data-driven underwriting model, the bank is poised to provide credit to millions of small businesses that have been previously excluded from the financial system. The question remains: will other fintechs follow suit, or will FairMoney's innovative approach remain a solitary exception in the Nigerian fintech space?

FairMoney's PoS terminals are not just machines for processing transactions; they are the key to unlocking credit for millions of Nigerian merchants. As the fintech landscape in Nigeria continues to evolve, one thing is certain: every PoS terminal will be a future lending opportunity.