GTBank deploys 200,000 PoS terminals nationwide, cuts fees to take on Moniepoint, OPay

Guaranty Trust Bank (GTBank), through its fintech subsidiary HabariPay, is rolling out 200,000 new Point-of-Sale (PoS) terminals across Nigeria and has permanently removed processing fees for eligible merchants. The move is a direct challenge to dominant fintech players Moniepoint, OPay and PalmPay in the country's fast-growing digital payments market.

Record transaction volumes and ambitious targets

According to GTCO's latest annual report, HabariPay processed a record ₦80.9 trillion in payment transactions in 2025, nearly tripling the value recorded in the previous year. The company now plans to increase transactions processed through its PoS network tenfold in 2026.

Although GTCO did not reveal the size of HabariPay's existing terminal network, its PoS devices processed 41.4 million transactions worth ₦1.2 trillion in 2025. That represents a 168.3% increase in transaction value from the previous year.

HabariPay's target for 2026 is even more ambitious. The fintech wants to achieve ₦1 trillion in monthly payment value, translating into approximately ₦12 trillion annually if the goal is met.

Zero processing fees as a competitive weapon

One of GTBank's strongest competitive weapons is its decision to permanently remove processing fees on eligible PoS transactions. Speaking during GTCO's 2026 Annual General Meeting, Group Chief Executive Officer Segun Agbaje said the zero-fee policy is a long-term strategy designed to attract and retain merchants. He stated the initiative is not a temporary promotion but a permanent feature of the bank's merchant business.

The fee waiver applies to merchants that maintain a minimum monthly transaction turnover of ₦7.5 million. The strategy mirrors the approach adopted by several fintech firms during their rapid expansion years, where lower charges helped them quickly build large merchant networks before monetising customers through additional financial services.

Banking sector fights back for merchant payments

For years, independent fintech companies dominated Nigeria's merchant payments ecosystem while traditional banks focused largely on retail and corporate banking. Companies including Moniepoint, OPay and PalmPay transformed PoS terminals into powerful financial distribution channels, serving millions of merchants and generating revenue from payment processing, lending, savings and other digital financial products.

The market has expanded rapidly. Nigeria Inter-Bank Settlement System (NIBSS) data showed PoS terminals processed ₦10.51 trillion in transactions during the first quarter of 2025, while the number of active terminals exceeded 5.9 million nationwide. Moniepoint says it operates over one million active terminals that process more than ₦10 trillion in monthly transactions, while OPay also reports serving more than one million merchant businesses.

Recognising the enormous opportunity, major banks are now investing heavily in fintech subsidiaries to compete directly for merchant payments. Originally launched as Habari in 2018 before being repositioned as HabariPay in 2022, the fintech now combines payment gateways, e-commerce solutions and PoS services under its flagship Squad platform. The company generated ₦9.74 billion in profit after tax in 2025, making it Nigeria's most profitable bank-owned fintech.

Regional expansion and infrastructure investment

Looking beyond Nigeria, HabariPay is strengthening operations in Ghana while exploring additional opportunities across West Africa through cross-border payment services. The company is also investing in artificial intelligence-powered fraud detection, faster settlements, stronger cybersecurity and switching infrastructure as it seeks to handle up to 70% of industry payment volumes.

GTCO said the nationwide deployment of 200,000 additional PoS terminals forms part of its strategy to improve last-mile financial services while supporting micro-businesses and small and medium-sized enterprises (SMEs).

While HabariPay still trails market leaders like Moniepoint in transaction volume, GTBank's combination of permanent zero processing fees, aggressive PoS deployment and expanding digital infrastructure signals a major shift in Nigeria's payments landscape. Traditional banks are increasingly competing to control the merchant payment ecosystem once dominated by fintech startups.

For Nigerian businesses and consumers, the intensifying competition could mean lower transaction costs and wider access to digital payment services, especially for SMEs that have long relied on cash-based transactions.