The Role of Fintech in Enhancing Financial Inclusion Through Point of Sale (POS) Business in Kano State–Nigeria
Article Sidebar
Abstract:
Background of Study: This study explores how financial technology (Fintech) contributes to enhancing financial inclusion, particularly through the operation of Point of Sale (POS) businesses in Kano State, Nigeria. In a context where access to traditional banking remains limited, POS businesses provide a practical alternative to financial services.
Aims and Scope of Paper: The research focuses on evaluating the perceived benefits, the level of adoption, and the challenges associated with Fintech solutions among POS business owners in Kano State. It aims to understand the role Fintech plays in supporting financial inclusion in underserved regions.
Methods: The study utilizes a survey approach with data collected from 80 SME (POS) owners. Quantitative analysis was conducted to assess the relationships among Fintech usage, benefits, and challenges.
Result: The findings reveal that Fintech significantly enhances financial inclusion via POS businesses by facilitating efficient transactions and improving access to financial services. However, several challenges persist, including infrastructural deficiencies, gaps in digital literacy, and concerns about cybersecurity.
Conclusion: Despite notable barriers, Fintech remains a critical enabler of financial inclusion in Kano State. The study recommends targeted training for POS operators, improvement of digital infrastructure, and the development of tailored Fintech solutions to meet the specific needs of small businesses.
Keywords: Fintech Usage, Fintech Adoption, Financial Inclusion, MSMEs, POS Business
Copyright (c) 2025 Nura Musa
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
Abba, M. (2021). Challenges of POS business in Kano State. Journal of Management and Innovation, 9(3), 78–85. https://doi.org/10.15640/jmi.v9n3a7
Abokyi, E. (2025). Financial inclusion and household welfare: insight from a developing country. Development and Sustainability- n Economics and Finance, 6(1), 1–18. https://doi.org/10.1016/j.dsef.2025.100068
Adeniran, A. ., & Baruwa, O. (2020). The impact of financial technology on the Nigerian economy. Cogent Economics & Finance, 8(1), 1–16. https://doi.org/10.1080/23322039.2020.1789645
Amoah, A., Tetteh, C. K., Osei-Bonsu, N., Pomeyie, P., Ahiabor, G., Hughes, G., Kwabenabu, I., & Otchere-Ankrah, B. (2024). Determinants of household saving behaviour in Ghana. COGENT ECONOMICS & FINANCE, 12(1), 1–19. https://doi.org/10.1080/23322039.2024.2420220
Anthony-Orji, O., Jude, I. O., Orji, A., & Ogbuabor, J. E. (2023). Investigating the Financial Inclusion, Domestic Investment, and Financial Development Nexus in Nigeria. Unisia, 41(1), 1–16. https://doi.org/10.20885/unisia.vol41.iss1.art1
Arner, D. W., Barberis, J. N., & Buckley, R. (2023). The Evolution of Fintech: A NewPost-Crisis Paradigm? Georgetown Journal of International Law, 47(3), 1–46. https://doi.org/10.2139/ssrn.2676553
Davis, F. D. (2020). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quaterly, 13(1), 319–340. https://doi.org/10.2307/249008
Festus, B. G. (2023). Impact of Digital Finance on Banks’ Credit Allocation in Nigeria. Journal of Public Administration, Finance and Law, 9(29), 69–80. https://doi.org/10.47743/jopafl-2023-29-06
Gomber, P., Koch, & Siering, M. (2023). Digital finance and fintech: Current research and future research directions. Journal of Business Economics, 88(9–10), 1267–1313. https://doi.org/10.1007/s11573-018-0900-0
Hussaini, U., & Dikko, M. U. (2025). Impact of Digital Financial Inclusion on Poverty Reduction in NorthWestern Nigeria. Saudi Journal of Business and Management Studies, 10(6), 255–266. https://doi.org/10.36348/sjbms.2025.v10i06.003
Joachim, O. A. (2022). Determinants of the use of financial services in Tanzania: The role of household behavioural factors. Doctoral thesis, University of Central Lancashire. https://clok.uclan.ac.uk/id/eprint/20712/
Nigeria, C. B. of. (2021). Enhancing financial inclusion in Nigeria: The way forward. Central Bank of Nigeria. https://www.cbn.gov.ng/FinInc/
Ogbaru, M. N., & Al-Hassan, R. (2023). Cybersecurity concerns in digital payment systems. International Journal of Cybersecurity Research and Education, 2(1), 12–24. https://doi.org/10.4018/IJCRE.339191
Okunnu, I., & Adams, G. (2022). Digital literacy and financial inclusion in Nigeria: A case study of Kano State. Journal of Information Technology Management, 14(2), 31–45. https://doi.org/10.22059/JITM.2022.888892
Ozili, P. . (2020). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 20(1), 36–49. https://doi.org/10.1016/j.bir.2019.12.002
Qazeem, B. A. (2024). The Role of Financial Technology in Enhancing Financial Inclusion in Nigeria. FMDB Transactions on Sustainable Management Letters, 2(4), 172–181. https://doi.org/10.69888/FTSML.2024.000316
Qi, Y. (2023). Fintech and the Digital Transformation of Financial Services. Highlights in Business Economics and Management, 8(1), 322–327. https://doi.org/10.54097/hbem.v8i.7225
Rogers, E. M. (2003). Diffusion of innovations (5th ed.). Free Press. https://books.google.co.id/books?id=9U1K5LjUOwEC&printsec=frontcover&redir_esc=y#v=onepage&q&f=false
Sharna, P. (2025). Cybersecurity Risks in Digital Banking: A Financial Perspective. International Scientific Journal of Engineering and Management, 4(6), 1–9. https://doi.org/10.55041/ISJEM04102
Singh, H., & Alshammari, T. (2020). An Institutional Theory Perspective on Developing a Cyber Security Legal Framework: A Case of Saudi Arabia. Beijing Law Review, 11(3), 637–650. https://doi.org/10.4236/blr.2020.113039
