Guaranty Trust Holding Company (GTCO) is positioning its zero Point of Sale (POS) charge policy as more than a pricing decision, it is a structural bet on SME growth and payments scale. The Group CEO Segun Agbaje confirmed at the company’s Annual General Meeting that the zero processing fee policy on Guaranty Trust Bank (GTBank) POS terminals is permanent, not promotional.
“Zero POS charges are necessary to our strategy” It is not a promo. It will continue for as long as this organization exists,” he said.
The Cost Barrier in SME Payments
For many small businesses in Nigeria, transaction charges remain a friction point in digital payments adoption. Merchant Service Charges (MSC), though relatively small per transaction, accumulate at scale and directly impact margins for low-ticket, high-volume businesses.
By eliminating these fees, GTCO is effectively lowering the entry and operating cost for merchants, a move that could accelerate POS adoption, transaction volumes, and customer retention within its ecosystem.
Revenue Trade-Off or Volume Strategy?
On the surface, removing POS fees suggests a direct revenue sacrifice. But strategically, it points to a volume-led model:
- More merchants onboarded
- Higher transaction throughput
- Increased float and deposit mobilisation
- Stronger cross-selling opportunities across banking, payments, and lending
In this context, the lost fee income may be offset by broader ecosystem monetisation.
Competitive Positioning in Payments
Nigeria’s payments space is increasingly competitive, with fintechs and banks competing aggressively on pricing, speed, and merchant reach.
By committing to a zero-fee structure, GTCO is shifting competition away from pricing and toward platform depth where scale, reliability, and integrated financial services become differentiators. The permanence of the policy also removes uncertainty for merchants, making GTBank POS terminals a more predictable cost option compared to variable fee structures elsewhere.
Balancing Growth and Shareholder Returns
Agbaje acknowledged the dual expectations facing the group: capital appreciation for institutional investors and consistent dividends for retail shareholders.
Despite a slight dip in profitability, with pre-tax profit at N1.23 trillion in 2025 and profit after tax declining to N865 billion, GTCO maintained strong earnings momentum, supported by gross earnings of N2.215 trillion.
The company declared a total dividend of N12.76 per share for 2025, representing a 59% increase year-on-year, reinforcing its commitment to shareholder returns even as it invests in long-term growth levers.
The Bigger Strategy
GTCO’s zero POS policy sits within a broader transformation strategy following its transition to a holding company structure.
The group is expanding across four core verticals:
- Banking
- Asset management
- Pension fund administration
- Payments
According to Agbaje, the group is still “about 10%” into this long-term execution cycle, suggesting that current moves are foundational rather than final.
What This Means
For SMEs, the immediate benefit is clear: lower operating costs and improved payment acceptance.
For GTCO, the strategy is more nuanced prioritising ecosystem expansion over short-term fee income.
The key question is whether transaction volume, customer acquisition, and cross-selling will scale fast enough to justify the pricing trade-off.
If they do, GTCO’s zero POS policy could shift industry pricing expectations – and redefine how banks compete in Nigeria’s digital payments market.
