Business
Impact of CAC’s Registration Mandate on PoS Agents and Customers
Introduction:
The recent directive from the Corporate Affairs Commission (CAC) mandating Point of Sale (PoS) agents to register with the commission has stirred mixed reactions among stakeholders. Some PoS operators in the country have expressed concerns about the implications of this registration on both their businesses and customers. In this article, we delve into the perspectives of PoS agents and customers regarding the registration mandate and its potential effects on transaction costs and financial inclusion initiatives.
The Impact on Transaction Costs:
One of the primary concerns raised by PoS agents is the financial burden that the registration process would impose on their operations. One of the PoS agents (name withheld) in Lagos highlighted that the registration fees would directly impact transaction costs, eventually leading to customers bearing the additional expenses. This increase in charges per transaction could deter potential customers and reduce the profitability of PoS businesses. The sentiment is echoed by other agents like Mr. Abdullahi Umar, who argued that such directives contradict the financial inclusion objectives set by the Central Bank of Nigeria (CBN).
Challenges to Financial Inclusion:
Most of the PoS agents spoken to further elaborated on how the registration mandate could hinder the goal of bringing banking services closer to the unbanked population. The added costs and complexities associated with compliance might drive customers away from digital payment platforms, prompting them to resort to traditional cash transactions. This shift could reverse the progress made in promoting financial inclusion and pose challenges for achieving a cashless economy.
Balancing Regulation and Business Viability:
While acknowledging the importance of regulatory measures to curb financial fraud and ensure accountability, PoS agents like Miss Adeola Alaran emphasize the need for regulatory bodies to consider the practical implications on small businesses. Another person, Clement, a student who relies on her PoS business for financial support, urges CAC to implement the registration process thoughtfully to avoid stifling entrepreneurial efforts. Striking a balance between regulatory compliance and business sustainability is crucial for fostering a conducive environment for economic activities.
Customer Perspectives on Security and Accountability:
Contrary to the apprehensions raised by PoS agents, some customers and individuals view the registration mandate as a necessary step to enhance security and accountability in the digital payment ecosystem. Some of them shared personal experiences of falling victims to financial fraud through PoS transactions, underscoring the importance of traceability and oversight in mitigating such incidents. The registration deadline set by CAC aims to safeguard the interests of Fintech customers and bolster trust in the financial system.
Conclusion:
The divergence of opinions among PoS agents and customers regarding CAC’s registration mandate highlights the complexity of regulatory interventions in the fintech industry. While the objective of enhancing transparency and security is commendable, stakeholders advocate for a holistic approach that considers the operational realities of small-scale businesses and the impact on consumers. As the July 7 deadline approaches, collaborative efforts between regulatory bodies, industry players, and customers are essential to navigate the evolving landscape of digital payments while ensuring inclusive and sustainable financial services for all.
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