1.0 Introduction
1.1 Background of the Study
In recent times, retail point of sale (POS) systems make retail transactions in physical places (stores, showrooms, etc.) easier for staff and consumers by offering an intuitive interface. Within the digital realm of electronic banking, a Point of Sale (POS) terminal offers various functions such as processing credit cards, checking accounts, recharging digital satellite television (DSTV) and decoders, reading transactions, and more, contingent on the model. Since the majority of shops have embraced these devices to facilitate simple, quick, and secure financial transactions, an individual can find them almost anyplace, including grocery stores, supermarkets, and petrol stations. Retailers and restaurant operators utilise point-of-sale (POS) systems to collect money from patrons among other things. Beyond just processing debit purchases, the majority of retailers also provide cash-back transactions.
Credit card firms run incentive programmes called cash back reward programmes, which return a portion of the purchases to the cardholder. As a result, this aids businesses in earning a higher interest rate or percentage on each transaction they complete for their patrons.
In addition, these constitute the hardware and software components that retail businesses require to operate. The point of sale is the main hub that assists merchants in operating and expanding their operations. It handles everything from purchasing and maintaining inventory to processing transactions and overseeing customers and employees. POS systems have made it possible for anybody to create and expand a retail store, from business-savvy entrepreneurs to craftsmen who wish to pursue their passion as a career. Retail staff members may quickly get product information, generate sales orders, take payments, and provide receipts by utilising POS software. Retail managers may also use this kind of software to keep an eye on transactions at their stores and examine sales or inventory statistics, such quantity, frequency, or volume.
The lockdown imposed by COVID-19 in Nigeria changed the way people lived and conducted business since so many Nigerians had to rely on point of sale (POS) machines, cash return systems, Paga systems, and other mobile banking services to access monies (Adewuiyi 2020). The lack of business centres and shops managing point-of-sale businesses 60% of which are bank agencies would have made this more difficult. An alarmingly high number of new cases were recorded in China and numerous other nations worldwide in the first three months following the COVID-19 outbreak in Wuhan City, Hubei Province, China. In March 2020 (WHO 2020), the World Health Organisation (WHO) formally proclaimed it to be a worldwide pandemic.
Fortunately, account holders now have a greater need to look for alternate ways to access and withdraw money since doing so is essential to their survival during the lockdown, which was brought on by the closure of banks. Retail store owners therefore had the chance to create more point-of-sale (POS) business centres as a result of the increased demand for cash, particularly in rural places where banking institutions are closed owing to lockdown.Accordingly, we may conclude that these point-of-sale merchants were crucial to the COVID-19 lockdown. As a result, this study aims to investigate the function of point-of-sale (POS) shops in Delta State during the COVID-19 shutdown.
1.2 Statement of Problem
Investigation revealed that the Covid-19 crisis has compelled retailers to change at a pace that have never been seen before in the industry. The covid-19 pandemic threw the world into extremely difficult and largely unknown waters, and the banking sector, like other sectors of the economy, was put on lockdown, making it difficult for account holders to access their savings during this period. The consequence of this is negative for the survival of common man. As a result, citizens needed to find a different way to access and withdraw their money.
Owing to this increase need for cash, business oriented individuals capitalized on that opportunity to open more POS terminals even though greater percentage of them are direct bank agents. On the positive POS retailers made cash accessible and easy financial transaction while most of them on the negative increased service charge when they perform any financial transaction. Therefore it is against this backdrop that this study seeks to examine the role of POS retailers during covid-19 lock down in Delta State.
1.3 Aim and Objectives of the Study
The aim of the study is to examine the role of POS retailers during covid-19 lock down in Delta State. In achieving this aim, the following specific objectives were laid out as follows to:
- Examine the financial services POS machine can perform.
- Investigate if POS business centre was efficient during covid-19 lockdown.
- Determine the extent of availability of POS centre during covid-19 lockdown in Delta State.
- Determine the role of POS Retailers on easy access of finance during covid-19 lockdown in Delta State.
1.4 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What is the financial services POS machine can perform?
- Do you think POS business centre was efficient during covid-19 lockdown?
- What is the extent of availability of POS centre during covid-19 lockdown in Delta State?
- What were the roles of POS Retailers on easy access of finance during covid-19 lockdown in Delta State?
1.5 Significance of the Study
The public will find this study interesting, particularly in regards to the necessity to recognise the POS's innovation as a breakthrough in electronic banking. By easing the process for individuals who are interested in launching a point-of-sale (POS) firm, it will raise awareness among financial institutions about the need of encouraging entrepreneurs to establish such businesses.
Finally this study will be relevant for further academic research on this field, contribute to the general body of knowledge and serve as a reference material for other researcher.
1.6 Scope of the Study
The scope of this research is focused on the role of POS retailers during covid-19 lock down. Specifically it will examine the financial services POS machine can perform. The study area utilized in the course of this research is the Aniocha Local Government Area located at Delta State in Nigeria.
1.7 Limitation of the Study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- Time Constraint:
The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Financial Constraint:
Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Initial Cooperation Delay from Respondents:
A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.8 Definition of Terms
Role:
A role is a set of connected behaviors, rights, obligations, beliefs, and norms as conceptualized by people in a social situation
POS:
A point-of-sale (POS) terminal is a hardware system for processing card payments at retail locations. It has software to read magnetic strips of credit and debit cards. The point of sale or point of purchase is the time and place where a retail transaction is completed.
POS Business:
POS business is a legitimate way to make money in Nigeria. It is also called agent banking business, and it's an extension of the services offered by financial institutions to enable easy service offering to a wide range of customers.
POS Agents/Retailers:
It refers to any individual that has a POS business. They are agents who carry out financial and banking services on behalf of the bank while earning their own commission.
COVID-19:
Corona virus disease 2019 (COVID-19) is defined as illness caused by a novel corona virus called severe acute respiratory syndrome corona virus 2 (SARS-CoV-2; formerly called 2019-nCoV), which was first identified in Wuhan City, Hubei Province, China.
Lockdown:
A lockdown is a restriction policy for people or community to stay where they are, usually due to specific risks to themselves or to others if they can move and interact freely.
