Are you looking to start POS business in Nigeria? If so, then this is the article for you.
We will be discussing all the steps that are involved in how to start POS business in Nigeria and show you how to get started as well as provide some insights into what makes a successful POS business.
POS business is one of the profitable businesses to start in Nigeria right now. To enjoy this POS business you have to make sure you plan it well and focus on marketable locations.
So, without further ado, let’s get started.
Table of Contents
What is POS Business in Nigeria?
A POS, or point-of-sale system, is a computerized system used in retail businesses to track sales and inventory. It is also used to process credit card payments.
A POS system typically consists of three components: the software that runs on the device, the hardware attached to the device, and the printer which prints receipts.
POS business is also known as agent banking business and it is used by financial institutions to promote the development of easier banking systems rendered to customers.
POS business covers payment services such as fund withdrawal, airtime purchase, fund deposit, fund transfer, utility bills payment (DSTV, GOTV, PHCN, and others).
Right now POS business is growing rapidly, mostly in the undeveloped area of the country. This helps make the payment system much smoother and faster.
POS Devices vary in price depending on the type you want to buy. For example, Nigeria’s leading POS supplier Opay has reasonably priced devices ranging from about N10,000 to over N40,000 each.
Here is the list of Best POS prices in Nigeria you can buy for your POS business.
Opay also offers various free services including monthly updates on sales reports by categories (stores), recommended products based on recent sales trends, etc. which can help your business grow faster!
How much does it cost to start a POS business in Nigeria?
The cost of starting a POS business in Nigeria will vary depending on the type of system you choose.
A traditional system will be more expensive than a cloud-based system, and the hardware and software will also be more expensive.
However, the initial investment will pay off in the long run as it is more reliable and has fewer glitches.
Training your staff will also incur costs, but these can be minimized by using online tutorials.
In total, starting a POS business in Nigeria will cost between ₦150,000 and ₦250,000. This includes the cost of the system, training, and other miscellaneous expenses.
How to start POS business in Nigeria
Now that we have covered the basics of what a POS system is and how to get one, let’s discuss the steps involved in starting a POS business in Nigeria.
Step 1: Have an established business
Talking about starting businesses, some business requires your customers to trust your brand. POS business is no different as it requires your trust in your customer before you can run a smooth business.
Central Bank of Nigeria always checks the background of the business before they are granted access to become an agent.
Before you can be fully accepted into the CBN retail banking agent, I have you must have been running the business for the last 12 months.
The first step is to register your business with the Corporate Affairs Commission (CAC). You can do this online or through an authorized agent.
And also you should register in one of the following corporate entities:
Limited Liability Company
With your business registered in one of the above entities, you will find it easier to start a POS business in Nigeria.
Once your business is registered, you need to obtain a merchant account from a bank. This will allow you to accept credit card payments from customers.
Step 2: Source for Capital
There is no business you can start without capital, as it is the general rule in the line of business. Since you have decided on the business you’re starting, getting the cost of the business will be easier.
Generally, starting a POS business shouldn’t cost more than 200,000 if you’re just starting. Once you have your capital ready then you can move on to the next step which is finding a location.
Step 3: Find a location
In the line of POS business, your location really matters this is because the business depends on it. While searching for a particular location you need to examine and choose an area that is underdeveloped (with lots of leg traffic).
The preferable location to choose for your POS business is an area where there are lots of people but with less or no access to banks and ATMs.
Step 4: Apply to become a POS agent
After you have determined the location for your POS business, the next step is to apply as a POS agent. One of the benefits of being a POS agent is that you get your own POS to do business and earn commissions.
There are lots of ways to get a POS machine, you can apply with a bank or a financial institution. You just have to find which of them is suitable for you depending on their requirements, commissions, and charges.
You can apply for a POS machine in the bank or company office and also apply online for one.
Getting a POS machine can take you between two weeks to a month with all the processing.
Step 5: Get to business
And this is the final step to starting a POS business in Nigeria. reaching this stage you must have passed the above steps and by now you should have your POS machine.
This means you’re ready for work, all you need go to your location with the proper coverage you need. You can now promote your business by sharing your friends and family on social media for them to patronize your business.
Which POS Agent is the best in Nigeria?
Before you become a POS Agent in Nigeria, you must start by choosing a POS service company.
There are lots of best companies you can join and that depends on their requirements. See the below list of POS service companies:
What is the POS business all about?
In the POS business, there are basic services you will render in order to make money. These services include:
Airtime purchase and others
This all deals with the use of the customers’ ATM cards. You start by asking the client type of transaction and then input it directly on the POS terminal device.
After that, you ask for the amount and also use the debit card. then, you ask the client to input their debit card transaction pin right after the POS terminal we request to make the transaction from the bank.
Once you see it is a successful transaction you’ll be able to print out a receipt confirming the transaction.
How do POS agents make money?
The POS business provides lots of opportunities for improvement agents they make money through the following means:
Commission: POS agents earn a commission from POS charges when a transaction is made and also it depends on the volume of transactions made per day.
Service charges: Depending and the type of transaction made by an agent they also earn a particular amount when services such as subscription bill payment and taxes payment are rendered.
As an agent, you can also earn by setting up another retail-related business, which also can earn you a good amount of money. You can make use of affiliate marketing in this line of business.
Now that you have learned about how to start a POS business in Nigeria. Do take your time to review the list of POS service companies you can start with.
Don’t forget to work on your business location before you start. sourcing for capital should also be your target as it is crucial in this business.
With the above done you can be sure of fortune with this business. I wish you good luck!