FairMoney Microfinance Bank has deployed approximately 100,000 Point-of-Sale (PoS) terminals across Nigeria, with each device designed to serve as a tool for future lending rather than merely processing payments. The digital lender is taking a targeted approach, using merchant transaction histories to identify creditworthy businesses and extend loans.
Focus on Quality Over Quantity in PoS Deployment
Unlike competitors racing to flood the market with millions of terminals, FairMoney is concentrating on building long-term relationships with merchants. Managing Director Henry Obiekea stated, 'We are not necessarily targeting like two million or three million or one million PoS terminals.' Instead, the bank uses payment data to assess business performance and determine loan eligibility, turning every terminal into an underwriting tool.
Leveraging Payment Data for Smarter Lending
Nigeria's PoS ecosystem has experienced explosive growth, with transaction values rising from ₦946.22 million in the first half of 2007 to ₦10.51 trillion in the first quarter of 2025. As of March 2025, the country had over 5.9 million active PoS terminals, dominated by fintech giants Moniepoint, OPay, and PalmPay, each with over one million terminals. FairMoney believes that payment data holds greater value for lending than transaction fees alone.
Shift from Consumer Loans to SME Banking
FairMoney originally launched in 2017 as a consumer lending platform, offering unsecured personal loans. However, the company discovered that many borrowers used these loans for business activities. 'A substantial number of customers that we had, that were taking loans, were utilising those loans for business activities,' Obiekea explained. This insight prompted FairMoney to pivot toward micro, small, and medium-sized enterprises (MSMEs), combining payment processing with data-driven lending.
Competitive Landscape and Industry Moves
FairMoney's strategy contrasts with rivals aiming for scale. For instance, Guaranty Trust Bank (GTBank), through its fintech subsidiary HabariPay, is rolling out 200,000 new PoS terminals and eliminating processing fees for eligible merchants. HabariPay processed a record ₦80.9 trillion in payment transactions in 2025, nearly tripling the previous year's value. FairMoney's approach prioritizes depth over breadth, positioning every terminal as a gateway for future financing.
Implications for Nigerian MSMEs
By analyzing transaction histories, FairMoney can offer faster, more accurate, and less risky business loans. This model aims to support the growth of MSMEs, which are vital to Nigeria's economy but often struggle to access credit. The shift from consumer loans to SME banking reflects a broader trend in fintech, where customer data unlocks new financial services.
