GTBank’s Bold Move: Zero Processing Fees on POS Terminals

Merchants using Guaranty Trust Bank (GTBank) POS terminals can now process payments at no cost, following the bank’s decision to eliminate processing fees. The initiative aims to ease financial strain on businesses while enhancing GTBank’s competitiveness in Nigeria’s rapidly growing digital payments sector.

“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 waiver, effective from February 11, 2025, ensures that merchants using GTBank’s POS terminals are no longer subject to Merchant Service Charges (MSC), a common fee deducted from each transaction. Traditionally, these charges serve as a revenue stream for payment providers, but GTBank’s latest move signals a strategic shift in an increasingly competitive landscape

GTBank’s fee waiver reflects an effort to compete with fintech-driven payment solutions, which have gained market dominance by offering lower transaction fees and faster settlements. By eliminating processing costs, GTBank aims to attract more small and medium-sized businesses to its POS services, positioning itself as a cost-effective alternative to fintech providers.

However, questions remain about the sustainability of this model. While fintech startups often rely on venture capital funding to absorb initial losses, traditional banks like GTBank operate under different financial structures and regulatory constraints. Whether this initiative is a long-term strategy or a short-term promotional effort remains to be seen.

As competition in Nigeria’s digital payments market intensifies, GTBank’s bold move could set a new precedent in the battle for merchant adoption.