POS Business In Nigeria: A Comprehensive Guide To Starting The Business (2022)
Many people are interested in starting a business in Nigeria, where the modern mobile cash banking business, POS, is growing. This article discusses how to create a point-of-sale (POS) business anywhere in Nigeria, as well as the prerequisites, guidelines, costs, and benefits of doing so.
The majority of people who own a POS firm, also known as an agent banking business, do so on behalf of financial institutions such as banks to reach out to places where ATMs and banks are few. With the help of creating a POS business in such remote places, financial services such as withdrawal and deposit services, paying utility bills, and so on are all made possible.
Despite the fact that POS agents are not directly hired by banks, they assist them in providing financial services in exchange for a commission. In Nigeria, a POS business is one of the finest ways to generate passive income.
What is A POS Machine?
You’ve probably heard about point-of-sale systems for a long time. A POS (point of service or sale) is a banking service that lets native debit cardholders to pay for goods and services in a retail setting. The transactions for this service are completed using a POS machine.
The POS service is an excellent automated product since it relieves the stress and weight of carrying currency and allows for direct cash transactions, among other things. The service is also quick and dependable, as it provides real-time payment and transaction notifications. Customers are notified anytime they make a cash transfer using a POS agent.
The POS service is not only for payments and bank transfers, but also for bill payment, such as recharge card, DSTV, GOTV, college fees, rent, and tax payments, among other things. POS machines are also utilized to make direct payments in workplaces, retail malls, gas stations, pharmacies, small enterprises, and eateries, among other places.
How Profitable is POS Business in Nigeria?
This is a lucrative industry to get into. This is due to an increase in the number of customers that use the services on a regular basis to complete transactions and move funds. People are drawn to this business because it relieves financial stress. If you’ve ever gone to an ATM and waited in line for hours, you know how well this firm is doing in terms of transactions. People increasingly consider it a viable alternative to bank cash withdrawals and transfers.
Thousands of individuals have been employed as a result of the POS industry, particularly young entrepreneurs and businessmen that enter into it.
Another benefit of the POS business is that it demands less capital and will develop quickly if all of the necessary steps are taken to get it started. The stages to building a successful POS business that will generate profits are outlined below.
How to Start a Point-of-Sale Business in Nigeria
POS Solutions, like any other enterprise, necessitates proper planning, money, location, and working conditions. If you’ve been wondering how to start a POS business or a mobile Instant money banking operation in Nigeria, this article will provide you with all the necessary information.
Step 1: Open a Store
The business location is highly important in any business since it offers your company precision and makes it easy to recognize. One of the advantages of this type of business (POS) is that it does not require a lot of room to get started; a vendor or a little area will suffice. It’s advisable to locate your POS shop in a business and commercial location since this will improve patronage and earnings.
Step 2: Choose a location.
In the point-of-sale industry, location is crucial. You should choose a business location that will enhance the number of customers and, as a result, the earnings of your company. It should, in my opinion, be an open vendor.
Step 3: Obtain a Start-Up Fund
You’ll need a reasonable amount of capital to start a POS business, which should be around N50,000. This money will be used to cover the costs of the shop, as well as payments for withdrawals and other extraneous items such as point-of-sale purchases.
Step 4: Obtaining a Point-of-Sale Machine
Of course, without this microscopic machine, you won’t be able to start this business. A POS machine can be obtained in one of two ways: through banks or other financial institutions. Before being issued a POS machine, a company or individual must meet the following requirements:
- A business name that has been registered
- A selling point (i.e. the business location)
- A passport photograph
- Bank account number
- Phone numbers and email addresses for businesses
- And a few other important details.
Once you’ve completed all of these requirements, you’ll be directed to the bank account officer, and your request will be processed within 72 hours of your submission.
The POS machine will be supplied to you in less than 14 days, and you will be needed to sign a POS consent form with the bank prior to receiving it.
Cost of POS Machine in Nigeria
The cost of a POS machine varies based on the agency, firm, or bank from which you purchase it, as well as the type of equipment. Though there is no set pricing for POS, the price range in Nigeria is around N45,000, N65,000, N75,000, and up to N200,000, depending on the machine’s specifications. Such variation might be analogous to having 2G, 3G, and 4G networks, with the greater the price, the more compactible the network is and the better the service.
Where Can I Get a POS Machine in Nigeria?
Banks and other financial organizations are the only ones who sell POS machines. To obtain the machines, here is a list of various well-known banks that provide POS services: Skye Bank, First Bank, Access Bank, Ecobank, Zenith Bank
It’s crucial to remember that every transaction you make with a bank incurs a fee. As a result, banks’ POS machines are given away for free, according to the bank’s terms and conditions and mode of operation. Some banks, for example, will only lend to you if you have a customer base of 1,000 or more, or if you can sell your items for up to one million Naira a day.
The POS business is a new and modern technique of conducting cash transactions that has proven to be a very profitable business opportunity for entrepreneurs. This article discussed how to start a POS business in Nigeria, as well as the costs and benefits.