POS business in Nigeria is a highly lucrative business anyone could start in Nigeria and a successful POS business owner can take home as much as 15,000 Naira daily as net income.so, learn everything you need to know about POS business right here on this page without paying a dime for the knowledge.
What is POS Business in Nigeria
In 2013, the central bank of Nigeria launched the agent banking scheme, when it released new regulations on the means and manner agent banking business should be carried out. This was the beginning of the POS business in Nigeria.
So the bank agent or POS business owner will have a business center or outlet where he will comfortably carry out monetary transactions and allow his customers to withdraw and pay utility bills, recharge their phones, check their account balance, etc. The business is highly successful in villages or rural towns or areas where there are no banks around. The POS business owner or Agent can work for as many financial institutions as he wants. The POS business can be used to complement any business or can serve as a secondary source of income.
However, it’s quite pertinent to note that the key to making money with POS is situating your business where there are no banks or in areas where there are few ATMs available for people to withdraw from. When affiliated with a bank or financial establishment, it is called an agent banking service.
This is the means by which banks and other financial institutions reach out to those who need banking services or communities where banking services are out of their reach. POS business can also provide financial services like withdrawal of funds, transfer of funds, recharging of phones, payments of utility bills and decoder subscription, etc. Initially, POS was used in supermarkets, retail shops, restaurants, and other places where customers are expected to pay for goods and services. POS business aims to provide a way in which people can easily do their financial transactions. It has provided a source of income for many. For those affiliated with banks, they help the bank provide financial services and earn a commission based on their agreements with the banks. If you are looking for a way to create an additional source of income or earn money without hassle or sweat, then the POS business is for you.
How To Start A POS Business In Nigeria
Starting a POS business in Nigeria is not difficult. In this section, I will show you quickly how you can start a POS business in Nigeria.
1. Get A Shop
Getting a shop is the first step to start a POS business in Nigeria. As a matter of fact, without a shop, you cannot run your POS business. The good thing is, given the nature of the business, you do not necessarily need to acquire a very large shop for your POS business. On the other hand, if you already have a shop, and you have a good inflow of customers on daily basis, you can use your shop for your POS business also.
A good location is necessary for you to succeed in the business. We will advise you to pick a good location with very few banks or ATMs. Populated areas like markets and bus stops should also be considered. The location will greatly influence how much you will earn daily. If you find a location, you can build a kiosk or rent a building where there is enough space so your customers can move in and out freely.
You should also advertise your business by getting a banner where the POS service you render can be clearly displayed to the general public. You should think it wise to install a burglary proof door to protect you against theft.
When starting out your POS business, you will need some amount of money like N50,000 to N100,000. This will enable you to give to clients that will come to withdraw funds.
Criteria For Starting A POS Business In Nigeria
Before you can start a POS business in Nigeria, there are certain criteria that must be met.
1. Have An Already Established Business
POS business is financial-related, hence, it is highly sensitive.
The Central Bank of Nigeria has emphasized the kind of persons who are eligible to serve as agents.
Banks and other financial institutions will follow these sets of instructions to the latter and scrutinize or verify persons who want to serve as their POS agents.
One of the criteria to qualify as a POS business owner is to have an already established business that has been active for a year.
Your business should have been registered with the government via the corporate affairs commission. How to check if a company is registered in Nigeria can be done through the CAC’s public search website before making any reservation
Your business can be categorized into the:
- Limited Liability Company
- Sole Proprietorship
- Cooperative Societies
- Public Entities
- Trusts or any other entity aside from faith-based or NGOs.
If your kind of business is listed above, then you won’t have any problem starting a POS business.
2. Approach the Financial Institution
Many financial institutions (bank included) allow agents to own POS business under their business name.
In Nigeria, some of the banks that have agent schemes include Polaris bank, First Bank, GT Bank, FCMB, Zenith Bank, Access Bank, etc. Other financial institutions have a dedicated agent platform, these include:
- Nexgo Pos
3. POS Tools
So after your request to either the financial institution or bank has been approved, you will be given the tools which will be given to you to start your POS business in Nigeria.
The following equipment will be supplied to you by your bank or financial institution to start the POS business:
Point of Sale Terminal: The portable machine you will use to process debit card transactions.
Card Reader: The device which is used to retrieve cardholder details like account number etc.
Personal Identification Number etc.
Starting Your POS Business
The POS business uses the POS terminal, together with smartphone and card reader to conduct financial transactions.
The following services are offered by POS businesses in Nigeria:
- Withdrawal of funds.
- Deposit of funds.
- Balance inquiry
- Deposit of funds
- Bills Payment ( Decoder subscription, utility bill payment ), etc.
The customer comes into your shop and state what the financial transaction he wants to carry out, for instance, withdrawal of cash.
The customer will present his debit card to the agent, who will in turn ask him to input his pin after inputting the amount of money the customer wants to withdraw.
The GPRS from the POS will connect to the bank server and authorize the process, a receipt will be printed out and the agent hands over the receipt and cash to the customer, while collecting his service charge.
That is it on POS business in Nigeria. if you have any comment, feel free to share and comment