GTBank waives processing fees on POS terminals to boost merchant adoption  

Businesses using Guaranty Trust Bank (GTBank) POS terminals can now accept payments at zero cost, following the bank’s decision to waive processing fees on its terminals. This move is expected to ease financial pressure on merchants while making GTBank’s POS services more attractive in an increasingly competitive market. 

“At Guaranty Trust Bank, we are always looking for ways to add value to our financial ecosystem. By implementing the zero processing fees on POS transactions, we are empowering businesses to get the full value of every payment they receive, whilst also ensuring a more seamless and efficient payment experience,” said Miriam Olusanya, Managing Director, Guaranty Trust Bank Nigeria.  

The initiative, which took effect on Tuesday, February 11, 2025, ensures that all qualifying merchants no longer incur Merchant Service Charges (MSC) when receiving customer payments via GTBank’s POS terminals.

Typically, merchants pay a fee — usually a percentage of each transaction — to their payment service provider. By scrapping these fees, GTBank is positioning itself as a cost-effective alternative to competing POS providers. 

POS transactions have become a major driver of Nigeria’s digital payments sector, with registered POS terminals reaching 7.8 million in 2024 — nearly double the previous year’s volume.

The total transaction value also surged to ₦18 trillion in 2024, up from ₦10.7 trillion in 2023. This rapid growth has been fuelled by a combination of factors, including persistent cash scarcity and the aggressive expansion of fintech companies like OPay, Moniepoint, and PalmPay, which now dominate the merchant payments space. 

GTBank’s fee waiver signals a strategic shift in the battle for POS market share, a space traditionally dominated by fintech firms offering lower fees and faster settlements. The move also mirrors tactics used by fintech startups, who often prioritise user acquisition over immediate profitability.

By absorbing transaction costs, GTBank is likely aiming to boost adoption of its POS services among small and medium-sized businesses while positioning itself against fintech-led payment solutions. 

However, the long-term sustainability of this strategy remains uncertain. While fintech firms often rely on venture capital to offset initial losses, traditional banks like GTBank have different financial structures and regulatory obligations. It remains to be seen whether this zero-fee initiative is a temporary promotional strategy or a broader shift in GTBank’s payment processing approach.