Pos business is one of the lucrative businesses you can do in Nigeria, and it requires a little capital. However, it is easy to start, and it doesn’t require a large place to start. Read this blog post to learn more about how to start a pos business and get a pos machine easily.
What is POS Business in Nigeria?
Pos business, also known as agent banking, is the acronym of point of sales. It is a type of business whereby mini machines are provided for individuals interested in doing the business to transfer and withdraw and deposit cash. It is also used to pay PHCN bills, cable bills, and purchase airtime.
The pos business offer service, including transferring on phones, and it is also used where several goods and services are sold, e.g., office, retailer shop, supermarket, pharmacy, gas station, etc.
How to Start a POS Business in Nigeria
To start a business, you must research, write a plan and make it come to reality by working on it; this strategy applies to a pos business. Also, to start a pos business, you need to take some steps, which will be explained below.
In this part of the blog post, I will explain and enlighten you on a step-by-step guide to start a pos business and make money.
Raise Capital
When starting a business, the first thing we have to consider is the capital we will use to provide the necessary equipment like a shop or a space, the working tools, etc. So when starting a pos business, you have to provide the capital you are going to use for renting a shop or space, an advertisement board, and a pos for performing transactions. For instance, if you are considering renting a space, you can budget #50,000 to build a kiosk and a banner to describe the service you are rendering.
Choose a Location
When starting a pos business, you need to consider choosing a populated area like market, motor parks, and residential areas so that passers-by and people within that area can patronize you every time. In addition, make sure the place you want to select is far from banks and atm galleries so that it wouldn’t decrease the range of customers patronizing you.
Approach a Bank and Apply to Become a Pos Agent
To be a verified pos agent, you need to identify a bank of your choice, visit them and request to become an agent and have a pos machine. This is one of the crucial stages in becoming a pos agent that requires little time, money, and days to finish the process. Some banks give out the pos for free, while some sell it. The blossom part of this information is that the CBN stated that individuals willing to start a pos business could become agents of more than a bank.
Before you are assigned as a verified agent in any bank, you will be required to provide identification documents, including a Driver’s license, National ID Card, Voter’s ID Card, Passport photographs, Bank Verification Number (BVN), Current Account references, and Evidence of business registration (CAC Certificate).
Start your business
After submitting the necessary details and being given the pos machine, the next thing you need to do is to start your business. Although, at first, you may not have many customers, don’t fret; make sure you have a signpost or banner that will make passerby notice the kind of service you offer, and they will patronize you if they need your service.
Which POS Agent is the best in Nigeria?
When you plan to start a pos business, you must choose the best company that offers low amounts of charges on transactions and has a strong network connection. Below is the list of trusted banks and companies you can register to become a pos agent.
- Wema POS/Agent Banking
- OPay POS
- Bankly
- Monie Point POS
- Firstmonie POS
- Kudi POS
- GTB POS
- Pay force
- Paga
- Zenith Bank mobile money agent
- data-preserver-spaces=”true”>Access Bank CLOSA agent
- Quickteller Paypoint
- Ecobank Xpress point
- Baxi Box
- UBA POS
How Do POS Agents Make Money?
Pos agents make money by charging their customers little fee on the money they want to withdraw or deposit. The higher the amount of money a customer wants to withdraw, the higher the charges. For instance, if a customer wants to withdraw N5000, he would have to pay N100 as a charges fee; this is also applicable to deposit.
With the analysis above, if over 30 customers successfully withdraw or deposit from you a day, you will make up to 3000 from the charges fee.
List of Cheapest Pos Charges in Nigeria
Baxi Box POS charges rate – 0.65% on withdrawals and N30 for transfer with no stamp duties.
Payforce POS charges rate – N25 for deposit, 0.65% on withrawal (0- ₦5000) = N30.
Moniepoint POS charges rate – for withdrawal o.5% from N1000 – N 19,900. N100 charges on (N20, 000 – N100, 000). Their Deposit fee is ₦12 Naira.
Kolomoni POS Charges rate – 0.5% for withdrawal from N1000 – N19,900 and N30 for Deposits N100 for 2000 Naira and above.
Advantages of POS business to the Public
- Low capital: The pos business doesn’t require a large amount of money when starting. With N50,000, you can start the business, and the most amazing part is that you don’t need a shop to start a pos business; with a table, chair, and a signpost, you can start earning huge cash daily.
- It has a high demand and high profit: pos owners earn a high profit because of the high demand of the business. People use the pos business every day to perform transactions.
- It helps merchants sell more by receiving customers’ funds as cash or using a debit card.
- It decreases the theft rate as individuals don’t need to hold more cash.
Frequently Asked Questions (FAQs)
Can I start a pos business with 50k?
With N50,000, you can start pos business and make money in Nigeria. All you need to start the business is to choose a company that would register you as an agent and give you a pos machine for free or paid.
How to Start a Pos Business with Gtbank?
If you are willing to choose Gtbank as the bank that will verify and supply you with a pos machine, you can follow the step below:
- Firstly, visit the nearest GTBank branch.
- Inform the staffs you want to become a pos agent.
- Then you will be given a pos application form to fill
- Fill out the form with the necessary details and submit the application form to the staff.
- After the submission, your application will be reviewed and verify the authorized management.
- After you have the approval, you will be given a pos machine.