THE IMPACT OF INTRODUCING POINT OF SALE (POS) ON SALES VALUE AND PROFITABILITY OF MICRO ENTERPRISE IN BAUCHI METROPOLIS (A CASE STUDY OF GWALLAMEJI AREA OF BAUCHI LGA)

Abstract This study examines the impact of introducing Point of Sale (POS) systems on the sales value and profitability of micro-enterprises in Bauchi Metropolis, with specific focus on the Gwallameji area of Bauchi Local Government Area. The increasing adoption of digital payment solutions has transformed the operational landscape of small businesses in Nigeria, enabling micro-enterprises to expand their customer base, reduce transaction costs, and improve efficiency. A sample of 100 micro-enterprises was selected using stratified and simple random sampling techniques to ensure representativeness across key business sectors, including retail, hospitality, and services. Data were collected through structured questionnaires and interviews, and analyzed using descriptive and inferential statistics. The findings revealed that the introduction of POS significantly enhanced sales value by enabling faster and more convenient transactions, attracting new customers, and reducing cash-handling risks. Moreover, POS adoption contributed positively to profitability by improving record-keeping, reducing losses from theft and errors, and facilitating better financial management. However, challenges such as high transaction charges, network instability, and lack of technical know-how were identified as major constraints. The study concludes that while POS systems have a strong positive effect on the performance of micro-enterprises, maximizing these benefits requires addressing infrastructural challenges and providing adequate training for business operators. It recommends that financial institutions, regulatory authorities, and policymakers collaborate to create a more supportive environment for the widespread adoption of digital payment systems by micro-enterprises.