Point Of Sale (POS) Business In Nigeria
The drive to provide financial services to unbanked areas in Nigeria has seen a massive increase in POS Business in Nigeria. Ordinarily, POS are for small and medium business enterprises used in collection of payments and to promote cashless policy.
However, in a bid to facilitate financial inclusion, most banks and financial institutions now give out POS in their verified customers in a bid to provide agent banking services like withdrawal, deposits and bills payments especially in areas where it is difficult to access commercial banks.
Nigerians has taken the opportunities provided by use of POS to provide financial services. The question as to how profitable POS business in Nigeria is, depends on many factors.
Just like in every other business in Nigeria, how lucrative POS business is in Nigeria depends on areas where the services are being provided at.
However, facts have shown that people make more money from POS business in a highly populated and unbanked areas.
These are the best places for POS in Nigeria. These are areas with high population but with little or no bank presence.
Another study has shown that areas where POS business moves well in Nigeria is large markets. Customers hate to spend time on queues in banks and most prefer paying a token and getting their financial services done in matter of minutes.
Today, one of the most popular business and fastest growing business in Nigeria is provision of basic financial services using POS.
It is popularly called POS business in Nigeria. POS business in Nigeria is also one of the business you can start with N100,000 (One hundred thousand naira).
In this article, we will talk about How to start POS business in Nigeria. Also, to be contained in this wrote up is best place to start POS business in Nigeria as well as how much can one make in POS business in one month.
How To Get POS In Nigeria
For many potential POS agents or banking agents, some of the most questions running through their minds is how to get POS in Nigeria and where to get POS in Nigeria.
In Nigeria you can get POS from commercial banks or CBN accredited financial agencies like Interswitch etc.
Almost all commercial banks in Nigeria and some top micro finance banks in Nigeria gives out POS to their agents and customers.
Also, one can get POS from CBN certified online payments facilitating companies in Nigeria like Interswitch, Paystacks etc. These are the best places to get POS in Nigeria.
Cost Of POS In Nigeria
How much is POS cost in Nigeria is dependent on the type of POS being acquired and also the POS sellers in Nigeria.
Before now, cost of buying a POS in Nigeria is a bit expensive. POS once sold for N80,000 and above. Today in Nigeria, some POS goes for N45,000, N50,000 and N60,000 etc.
Different prices of POS in Nigeria are dependent on the type of POS and functions of the POS. Higher expensive POS is likely to have more functions and operations.
Requirements For Getting POS In Nigeria
Requirements and procedures for getting POS in Nigeria differs from among all POS merchants or POS sellers in Nigeria.
However, there are some POS requirements that are general. If you are obtaining POS from bank, you must be a customer to the bank and the following requirements will be requested before POS will be given to you.
- Valid means of identification e.g Driver’s license, National ID card, International passport or voter’s card
- 2 passport photographs
- 2 current account references
- Evidence of business registration (CAC Certificate)
- Tax Identification Number (TIN)
- Credit Bureau Report
- Memorandum and Article of Association.
- A minimum working capital of N50,000
POS Business In Nigeria: How To Start
Below is a tip on step by step procedure of how to start up POS business in Nigeria
Have an Existing Business / Getting A Shop
One of the requirements for being a banking agent and having POS given to you is to have an existing business.
However, these days, people don’t necessarily have existing business before getting POS, what they do is rent a shop or space for your POS business and obtain POS using a friend or family registered business and address. Nevertheless, having an existing business combined with POS business is ideal.
Contact POS Merchant: Banks or CBN approved POS Dealers
Having gotten a shop or business, next in line is to approach a bank or CBN certified POS dealer and apply for POS acquisition.
The bank or agency will require you meet up with certain requirements which we have stated above. If you qualify, your address and documents will be verified and if successful, you will be given POS.
Supply Of Equipment
Once application is successful and approved, the bank will supply the following agent banking equipments to the applicant.
- Point of Sale Terminal (POS)
- Card Reader
- Personal Identification Number (PIN)
- Barcode Scanner
At this point you are ready to provide financial and agent banking services such as
- Cash deposit and withdrawal
- Balance inquiry
- Funds transfer services (local money value transfer)
- Bill payment (taxes, utilities, tenement rates, subscriptions, e.t.c)
- Generation and issuance of mini statement
How To make Money As POS Agent In Nigeria
Basically, POS agents in Nigeria makes money through commissions they are paid by their respective banks and agency.
The amount paid as commission for POS business in Nigeria is dependent on the number of transactions carried out.
So, the higher the transaction the more profit. Also, POS agents makes money through commissions charged to customers who visit for financial services like withdrawal and deposit transactions.
Some agents charges N150 for withdrawal of N1000 and below. Same for bills payments. These are some of the ways to make money in POS Business in Nigeria.
Best Place To start POS Business In Nigeria
There are many unbanked areas in Nigeria. These places are the ideal places for POS business in Nigeria. Highly populated areas with little banks presence is also a good place for POS business in Nigeria.
Studies has also shown that POS business in Nigeria thrives well in large daily markets. Most importantly POS business should be sited in a crime free or crime low areas to avoid incessant robbery attacks.