Starting a POS Business in Nigeria

This technological advancement has provided lots of people the chance to make good livelihood and. earn steady and big cash daily.

POS, which means Point of sale is sometimes referred to as agent banking business venture which involves largely dealing with funds, like money transfers, withdrawal of cash, deposits, and payment of bills such as utility bills, data and cable subscriptions of various companies like the Gotv, startimes, DSTV and many others.

This business is a very lucrative business which started off with little awareness some years ago but have since gained popularity due to the benefits and steady generation of income. This is an extension of the services offered by financial institutions in Nigeria as a door step money agent.

This business do well in local and remote areas where there are no banks, no ATM outlets or limited availability of banks. Although, in areas with reasonable number of banks situated and the population seem to be rapidly growing, POS business will thrive well too. In the same vain, commercially populated areas are sure locations to set up a pos business here in Nigeria.

Benefits of POS Business
1). This business which serve as a help to the ever growing population of Nigeria has helped reduced some rigors and provide convenience in financial transactions.
2). It has helped achieve financial inclusion
3). This money agent has provided business Opportunity to those who wish to go into it.
4). It has further created jobs for those who are unemployed.
5). It has reduced the usual congestion in bank branches
6). It has helped in serving a wider range of customers.
7). It has enabled a quick money transaction.
8). It has reduced the risk of traveling with large sum of cash.
9). It saves time and energy.
10). Costumers without cash can buy goods and receive cash. And lot more other benefits.

Challenges of POS Business

  • Cost of POS terminal
  • Delay in the reversal money
  • Connectivity
  • Banks/customers problems
  • Security (hacking, arm robbery, theft etc)

How Do i Get a POS Machine?
This thought comes to mind each time people desire to start this business. There are lots of agencies, institutions and companies that offer this machine for free, provided you meet all necessary requirements. Getting this machine means you are allowed and have been given a go-ahead to run your own pos business where ever you desire to.

Here are institutions that provide pos machines at a good service fee.

First bank of Nigeria
Access bank. Etc

Steps of Starting POS Business
There are things one need to consider whenever you intend to start up any business or enterprise.
Follow these steps to set up your business successfully;

1). Choose a location
Like i pointed out earlier, location is one thing you should take really serious when considering this business. You need a busy location where lots of people gather or come around for one business or the other.
Getting a place where there are no much bank or ATM installed will boost your business. This is true because most of the money transaction that required the bank to execute will be done by you at a fee.
Location that is mostly inhabited by students is also a great shot. Students can’t do without withdrawal.

2). Get a Place or shop
The next thing to do after getting a good location is to get a place, a shop, or a kiosk. This place should be somewhere very open or clearly seen by costumers. Getting a shop will help you organize your place and provide shelter to workers and clients.
An open place will be easy to describe to new prospects, those who are in need of your services. If your shop is hidden, it will make costumers loose interest in trying to locate your place always. It will also give them the phobia of being attacked by criminals after they have made some withdrawal.

3). Capital
There are few businesses that require little money to start, POS is not one of those sincerely. I did not say this to scare you, but to motivate you into doing it well.
You need cash to do lots of things in the business. You need a shop, you need to decorate and provide burglary prove, you will need cash to print banners of POS design. Most importantly, you need money to dispense to costumers when they make withdrawal, transfer and all of other money transactions.

4). Acquire your POS Machine
Having the things listed above in place, what you need next is the machine from any of the agencies mentioned above.
The machine allows you to do all the transactions you will need. Ranging from money transfer, deposits, withdrawal and other services like data and airtime vtu. You can pay bills with this machine and other activities that are configured into the machine.
However, the process of acquiring this machine differ from each institutions.

5.) Strategies
It’s no news that this business is massively gaining ground, as lots of persons are going into it because of its lucrative nature. Therefore, to do well on this business you need to adopt some strategic steps. It could be in your area of service or charges, your design and advertisement. For assistance, Do Good Foundation can help with advise.

Feasibility on POS Business
Here is a little feasibility study on how to earn from this internet/online money business.

Withdrawal or Deposit or Transfer
You are charged around or less than #100, by your money institution on each withdrawal. If someone makes a withdrawal of #1000 and above you will be charged the same fee at a range.

Assuming someone makes a withdrawal of #20, 000 at once you will be charged the same fee for #500, so also if some withdraw between #21,000 to #100,00 will pay a fixed fee. This also applies to transfers and deposits but the good news is you can place your charges based on withdrawal or amount someone makes to make more profit after deducting your financial institution charge.

This is applicable Also for transfer and deposit. Although, you can decide on the amount you wish to charge but it’s advisable not to charge too high.

POS business in Nigeria is a very mouth watering business that you should consider. There are lots of benefits and convenience in the business. What you choose to charge costumers is at your own discretion, though it is better you reduce your charge in order to attract more costumers.

If you need a machine, you can Google any of these agents above.
Good luck and best wishes.

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