February 16, (THEWILL) – Guaranty Trust Bank Ltd (GTBank) has scrapped processing fees on all its point-of-sale (POS) terminals, allowing small and medium-sized enterprises (SMEs) to receive payments at no cost.
The bank announced the initiative in a notice to customers on Thursday, stating that the removal of Merchant Service Charges (MSC) took effect on 11 February.
The move comes as Nigerian businesses grapple with rising operational costs amid high inflation and currency depreciation, driving many to shift to neobanks for their POS transactions, where they claim to benefit from lower costs and faster processing times.
By eliminating transaction fees, GTBank says it aims to ease financial pressures on merchants while strengthening its position in the increasingly competitive digital payments market.
“With this initiative, all qualifying SME Merchants can now receive payments at zero cost, allowing them to reduce operational expenses, whilst promoting the merchant’s enterprise, and enhancing customer experience,” it said in the notice.
The Managing Director of Guaranty Trust Bank Nigeria, Miriam Olusanya, said the initiative aligns with the bank’s strategy of supporting business growth.
“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,” she said.
The decision is expected to boost the bank’s transaction volumes.
It said the zero processing charge campaign aligns with GTBank’s ongoing efforts to empower businesses with innovative financial solutions that drive growth and efficiency.
Businesses using GTBank’s POS terminals can now process payments without additional charges, with further details available through relationship managers or the bank’s digital banking support team.
THEWILL recalls that in line with its long-term commitment to growing small and medium enterprises GTBank in May 2019 announced its partnering with the Development Bank of Nigeria (DBN) to disburse N25 billion funding to entrepreneurs in Nigeria’s Micro, Small and Medium Enterprises (MSMEs) sector.
The funding is the single largest disbursement by the DBN to any financial Institution in Nigeria since it commenced operations.
The Development Bank of Nigeria (DBN) was set up by the Federal Government of Nigeria (FGN) as a wholesale development finance institution (DFI) to address the major financing challenges facing Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria. In 2018, the DBN disbursed a total of N31.364billion to 35,000 end borrowers through Participating Financial Institutions (PFIs). This was expected to grow significantly following the N25billion funding partnership with GTBank due to the Bank’s focus on creating greater access to credit for small businesses.
GTBank has been at the forefront of driving innovative solutions and socio-economic initiatives that empower small businesses with the financing, resources and access to markets that they need to grow.
Among these are the Bank’s free business platforms, the GTBank Food and Drink Festival and the GTBank Fashion Weekend, through which it is accelerating growth for Small Businesses in Nigeria’s food and fashion industries. The Bank also offers a wide range of low-interest loan products designed exclusively for MSMEs, and will be taking its support further with its partnership with the DBN.
GTBank Nigeria is regarded by industry watchers as one of the best run financial institutions across its subsidiary countries and serves as a role model within the financial service industry due to its bias for world-class corporate governance standards, excellent service quality, and innovation.
The Tier-1 financial services institution had reaffirmed its position as a leading global brand with its recognition as ‘Nigeria’s Best Bank & Africa’s Best Bank for SMEs’ during the 2017 Euromoney Awards which held in London on in July 2017.
According to Mr. Clive Horwood, Euromoney Magazine’s Editor, “Nigeria went through a difficult year, as low oil prices and capital flight continued to hurt the country’s economy. Many banks struggled as a result of this but GTBank remained strong, recording significant and enviable financial and non-financial performance.
According to him, the bank’s digital transformation drive had been very successful as it has enabled the bank to deepen financial inclusion across Africa with its array of tailor-made digital solutions that had made banking simpler and more accessible.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
