How To Start A POS Business In Nigeria- No doubt, one of the most profitable businesses in Nigeria is a POS business.
This business allows you to earn between N100 and N500 per transaction, and this depends on the amount involved and the type of transaction.
Hence, as a POS operator, you can earn N7,000 to N10,000 daily. Amazing right?However, to venture into this business, there are certain things you need to be aware of, without which you might fail.
While many think getting a POS machine and a shop is the only thing you need to start this business, there are, however, several other things you need.
And these include, capital, a good location, a Pos machine, and a shop. With these and the right business plan, you can kick start your POS business in any part of Nigeria.
If you would like to start this business but aren’t sure how to get started, then read this article.
In this article, we will be providing you with detailed information on how to start a POS business in Nigeria.
Services Offered by POS Businesses in Nigeria
Meanwhile, for people who run a POS business in Nigeria, here are some of the services that they provide to customers who make use of their services:
- Opening of bank accounts.
- Withdrawal of funds.
- Funds deposit.
- Fund transfer.
- Payment of bills, airtime, TV subscriptions, and many more
Note; the services of a POS operator is not limited the above listed ones; there are wide range of services that you can also offer aside from the listed ones.
How Much Does Starting A POS Business Cost?
Before starting a POS Business one of the factors that you should consider is the cost.
To help you with this, we have provided a breakdown of the estimated cost $100,000. Below is the breakdown;
|20,000 to 50,000
|₦5,000 to 15,000
|₦20,000 to 40,000 per month
|Initial Cash Float
This adds up to ₦110,000 to 175,000, but keep in mind that this is a rough guide.
Note; the real cost may differ depending on factors like business strategy, competition, and location.
How to Start a POS Business in Nigeria
Starting a POS business in Nigeria is very easy if you follow the right procedure and consider important things.
You also need to do a lot of research before you begin. So, here are the steps you need to take to start a POS business in Nigeria:
- Prepare Capital.
- Find a good location.
- Get a shop.
- Apply to get the POS machine.
Preparing capital is one of the best ways to start your POS business in Nigeria because, without it, running the business will be impossible.
According to experts, beginning a business like this will require a budget of N80, 000 to N100, 000.
This includes the money to get a POS machine as well as other expenses required to start the business in Nigeria.
Find a Good Location
Finding a good location is another good way to start a POS business in Nigeria. This factor is very important because it is stationary.
Hence, it has to be in a good place where people from various areas can find it and locate it.
You also need to find a place in a crime-free environment. This is because opening a shop in such areas can put your business at risk.
So, make sure you find a strategic place with a good number of people that is free from crime.
Get a Shop
Starting a POS business in Nigeria is possible when you have a shop to begin with. Besides, you cannot run this business if there is no shop or location that customer can visit.
So, if you are likely to begin a POS business, get a shop and set it up for your business.
Make sure that your shop or even kiosk notifies and shows that a POS business is being run here.
Apply to Get the POS Machine
The last stage is to apply for a POS machine. You can get a POS machine from finance agents and commercial banks.
It is worth noting that, the cost of getting these machines varies depending on agents who issue them.
Thus, we advise you make inquiry about the cost of obtaining a POS machine before starting your application.
If you aren’t sure which commercial bank or finance agents to opt for, check out the list below for some of the POS providers in Nigeria.
POS Service Providers in Nigeria
Here are some of the most popular POS service providers, as well as mobile money providers and financial institutions:
- Opay POS Agency.
- Zenith Bank.
- Access Closa Agency
- UBA Monie POS Agency.
- Monie Point.
- Polaris Bank.
- First Monie POS Agency
- Wema Bank.
So, you can choose to obtain a POS machine at any of these financial institutions at any time.
How Profitable is the POS Business in Nigeria?
As stated above, POS Business is one of the most lucrative businesses in Nigeria.In fact, almost all Nigerians are venturing into this business and this is because of the scarcity of ATM in most areas.
As a POS operator, you can earn N7, 000 to N10,000 daily or less depending of the location of your store. So what are you waiting for? Why not start a POS business today?