The Basics Of How To Start A POS Business In Nigeria

POS Business In Nigeria

POS business in Nigeria makes life easier for people due to the unstable situation of Nigerian banks and ATMs. And the POS business is so profitable, easy to start, and you don’t need to break the bank to start.

In Nigeria, a large number of people and businesses use POS for business. And mostly, students engage in this business every day because it’s super easy and required no stress and it can be done anywhere. Also, retailers do POS business too, adding it as a support to their business. Furthermore, restaurants, hotels, and others do the business.

As long as you know how to operate the machine and the money to deliver to people, you are good to go.

How exactly do you start a POS business in Nigeria? We will break down the information on how to start a POS business through the frequently asked questions (faqs) below.

What Is POS Business And How Does It Work?

The POS business involves the use of POS machines or terminals to conduct payments or transactions for a customer. Some of the transactions include paying bills, cash withdrawals, funds transfers, and even paying for goods and services.

What Are The Advantages And Disadvantages Of POS Business In Nigeria?

Advantages of POS business:

1. It saves time
2. It requires low start-up capital
3. High profit potential
4. It eases transactions
5. It reduces the stress of a customer looking for where to pay bills.
6. As a business owner using a pos system you are at the advantage of increasing your business revenue.

Disadvantages of POS business:

1. Depending on your location, network issues can affect your POS business.
2. There are high chances of robbery especially when you are in an insecure environment.
3. High competition: Every area now has pos, which a new agent has to combat the competition.
4. Once in a while you may face the issue of the debiting without reflecting and also delay in a reversal of the fund.

What Is The Future Of POS Business In Nigeria?

As POS businesses are rapidly increasing in every location, the future of POS business will involve every business, organization’s, grocery, supermarket, and even the market to start doing transactions through the POS systems.

What Are The Best Bank For POS Business In Nigeria?

The best bank for POS business is First Bank (firstmonie), Wema Bank (Wemapay), FCMB, Zenith Bank, UBA (UBA Moni), Polaris Bank (Surepadi), And Access Bank (Access Closa Agent).

Each of these banks has its requirements and criteria.

What Are The Top POS Companies In Nigeria?

Here is the list of the best POS companies in Nigeria:

1. Opay
2. Moniepoint
3. Palmpay
4. Baxi Box
5. Paga
6. Nomba
7. Bankly
8. Quickteller

How Lucrative Is POS Business In Nigeria?

A POS business is very lucrative and probably one of the most popular businesses in Nigeria. A POS business fulfills the needs of the people by providing transaction services like withdrawal, transfer, and paying bills.

Another great reason why a POS business is very lucrative is that you can attract customers if you are in a good location. People do transactions daily and as far as you are in a good location and you offer good customer service it will be very possible to get a lot of recurring customers.

Finally, it has a high-profit potential.

What Should You Consider Before Starting A POS Business?

Before you think of starting your own POS business you have to consider the following factors:

1. Location: It’s important to remember that a high-traffic area is a recommended location to start a POS business. Avoid starting your POS business in a lonely environment.

2. Choosing The Right POS Service Providers: So far, we have listed some of the best banks and companies for POS business. It is now left for you to inquire about each of them.

3. Know how they work/operate, both technically and otherwise.

What Are The Requirements To Start A POS Business In Nigeria?

The requirements vary based on the bank or company you want to start your POS business with. Nonetheless, below are some of the basic requirements:

1. Means Of Identification: Like voter’s card, International passport, driver’s license, or national ID card

2. Evidence of business registration (Not all POS service provider demands this)

3. Two (2) passport

4. BVN (Bank Verification Number)

5. Email address

6. Utility bill

7. Bank accounts etc.

The most important requirements are your BVN,a valid means of identification, passport, bank account and utility bill.

What Are The Best Location For POS Business?

1. Markets
2. School environments
3. Close to shopping malls
4. Close to banks
5. Finally, a well-populated area.

Can I Start POS Business With 50k?

Yes, you can start a pos business with 50k. But note that shop rent will be excluded. This is because some shop owners will charge you as high as 100k for a shop rent. However, with 50k you can start a pos business using a table and an umbrella or small kiosk.

How Much Do I Need To Start Up A POS Business In Nigeria?

You can start a POS business with a minimum capital of 50k. Meanwhile, it is advisable to start a pos business with a working capital of ₦300,000. This will cover the cost of the machine, shop rent, and customer payments.

How Do I Start A POS Business In Nigeria?

1. First, you will need to understand how POS business works, the profit margins, expenses, and how to calculate profits. A solid business plan will be required.

2. You will need to find the best location for your POS business. Above all, you will need a location with a high population. Examples are markets, school environments, and shopping malls.

3. Meet up with the requirements by providing a valid means of identification, passport, BVN, utility bills, and business registration info (if necessary).

4. Apply to become an agent: Depending on your capital and your choice of POS service provider you want to work with, you have to choose one and apply to be an agent.

5. Finally, after you must have gotten your POS machines, the next is to launch and startup your POS business.

How Do I Attract Customers To My POS Business?

First and foremost, the POS business is full of competition and the best way to attract customers at this point is to provide exceptional customer service. Whether you are the one running the business or your staff just ensure that they relate with the customers in a good approach.

Secondly, you have to place a bold and visible banner/signpost to clearly show people that you offer POS related services.

And most importantly, you can attract customers to your POS business as far as the location of your business makes sense.

How Much Can POS Make Daily?

As a pos agent, it is important to know that your location plays a vital role in determining how much you can make daily. However, a POS business has the potential of generating daily ₦3000 to ₦20,000 or more.

How Much Are POS Withdrawal Charges In Nigeria?

Below are some of the POS withdrawal charges using Imo State and Abia State as an example:

₦500 withdrawal is ₦50
₦1000 to N5000 is ₦100
₦5000 to ₦10,000 ranges from ₦200 to ₦300
₦20,000 to ₦50,000 ranges from ₦400 to ₦800

Based on your relationship with your customers, the charges can be stepped down.

How Can I Calculate Profit In POS Business?

The simplest way of calculating your profit is to know your opening balance as soon as you come to work and then calculate your closing balance as soon as you close from work.

Next is to find the difference between the closing balance and the opening balance.

However, you must be sure that the profit is correct after your calculations. Also, you have to be sensitive when it comes to calculating your day-to-day transactions to know if your business is growing or falling.

What Can I Add To My POS Business?

Below is a list of businesses you can add to your POS business:

1. Recharge card business
2. Snacks and drink business
3. Phone accessories business
4. And lastly offering online registration services.

Ambassador Victor Chidera
Ambassador Victor ChideraAmbassador Victor Chidera is a business consultant, writer and a blogger. He provides lots of professional and expert advice to small businesses, entrepreneurs and organizations. He has many years of experience in business, teaching field, and research work. And his aim is to provide business articles that matters to you both nationally and internationally.
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