POS business is one of the viable and profitable businesses in Nigeria with very little startup money compare to so many other businesses in the country.
Aside from the fact that it does not require much money to start, it does not require a large portion of land or building, with just a table, a chair, and an umbrella you can start the business.
In this article, we will be discussing how much money is required to establish a POS firm in Nigeria, how profitable it is, and how to do it. Not only that, but we will also provide you with some more pointers on how to be a successful POS agent in Nigeria.
The words Point of sale, or POS, were first used in 2013 by the Central Bank of Nigeria (CBN) as part of its plan or upholding its cashless policy. The POS job entails helping clients with straightforward financial operations and receiving payment in exchange.
Through POS service providers, which often include banks, fintech firms, and microfinance banks, POS agents can provide their services to customers with less difficulty and better profit.
How does the Business Work?
How POS business work is as follows:
- As an agent, you will receive a POS device from banks or fintech firms of your choice.
- Create your POS business name which will also be used to open an account for you with your service provider.
- Register and deposit money into the POS account depending on the amount you want to start with.
- Provide people with basic financial services like withdrawal, deposit, transfer, airtime purchase, etc.
- Charge your customers a fee for each transaction you complete. You may also occasionally receive incentives from the POS provider.
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How to Start a POS Business in 2023
The start-up capital of a POS business is not fixed, although, the higher the start-up capital the high the interest. However, you can start this business with very little amount.
You can get the POS device from Banks or Fintech firms for as low as N30,000.00 which you can pay in installments and you can use N 70,000.00 as a substantial amount for your daily transaction. This amount can be increased as your business grows.
Aside from the monetary aspect, other things to put into consideration are:
1) Location: You must look for a good location to set up your POS stand, locate a place that is a business area such as a market, motor Park, shopping mall e.t.c
2) Good service provider: this is very important, as customers will shift from you if you always have network issues. Hence we suggest the following providers;
- Firstmonie (First bank)
- Opay
- Monie Point
- Baxibox
- Kudi
- PalmPay
- Paga
- Wema Bank
- GTbank
- Zenith bank
- Access bank
- Quickteller
3) Meet up with official recruitment: Before any financial institution will accept a POS agent, they must first satisfy the conditions set down by the Central Bank of Nigeria. The CBN allows POS agents to work for several POS service providers, however, each provider may have different documentation requirements.
Some of the requirements are:
- Your Valid means of identification such as a National ID Card, Voter’s ID Card, etc.
- Your Passport photographs
- Your Bank Verification Number (BVN)
- Your Current Account references
- Evidence of business registration (CAC Certificate)
- Start-up funds/ capital minimum of NGN50,000
- Tax Identification Number (TIN)
If you can do your work properly, you can be making up to N10,000.00 daily and over N300,000.00 monthly.
Conclusion
In addition to whatever current business or job you might have, a POS business is another profitable source of income that can boost your finances.
However, you must first conduct adequate research before you venture into it.
