In Potiskum, Nigeria, locals have found an innovative way to access cashMoney in physical form such as banknotes and coins. More after Boko Haram disrupted the region’s social and economic equilibrium.
The inhabitants of this north-eastern region have turned to Point of Sale (POSAbbreviation for “point of sale”. See Point-of-Sale terminal. More) terminals for cash. The cash withdrawal process is quite similar to that of mobile moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More. Users simply go to a shop that has a POS machine, pay the merchant the amount they want to withdrawal plus a commission, usually 2%. In turn, the merchant hands them the requested amount of money.
Known to hold West Africa’s largest cattle market, Potiskum businessmen and farmers need to have access to liquidityDescribes the extent to which assets or rights can be converted into cash without causing a significant decrease in the asset’s price. Accordingly, liquidity is often inversely proportional to the profitability of the asset and involves the trade-off between the selling price and the time needed to convert it to cash. In finance, cash is considered the most liquid asset and cash is sometimes used as a synonym for liquidity (e.g. cash reserves; cash pooling…). More, and this new system has provided them with an acceptable solution to the problem. If previously people from more remote villages had to travel hours to get some cash, POS terminals have offered them some relief and an easier access to cash. Today, almost 80% of the region’s population uses POS’.
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