Long ATM queues and extended lines at the bank with people waiting to withdraw cash is a common sight in many urban areas in Nigeria. If you have been pondering on starting a profitable business in Nigeria, then you might want to consider the POS business. The POS business in Nigeria is a lucrative venture. The rise of the POS business in Nigeria is as a result of people’s quest to live life more conveniently. The rigour of going to the banks, ATMs, and so on is completely reduced to a simple POS swipe.
What is POS?
The word POS simply means Point of service or sale. The POS business can also be referred to as agency banking. Individuals who desire to start a POS business should consider areas where banks and ATMs are limited. The POS is a banking service that allows you to pay for goods and services using your debit card. The POS service makes use of a POS machine to carry out transactions. The POS service is beneficial because it eases the stress of carrying the bulk of cash around. It is also fast and reliable. The POS is not only for transfers and withdrawals but also for bill payments like airtime, rent, GOTV, electricity bills, and tax payments. You can also use POS machines for direct payments in malls, eateries, pharmacies, etc.
How profitable is the POS business in Nigeria?
The POS business provides ease to individuals who need to carry out the transactions it offers. The POS business has also provided jobs for young entrepreneurs all over Nigeria.
The benefits of starting a POS business include;
1. Capital as low as 50,000 naira
2. The POS business is multifunctional. You can perform various transactions like bills payments, recharge cards, withdrawals, and payment transactions.
3. You can make daily income able to set you financially free.
4. You get a free POS machine (this depends on some terms and conditions)
How do you start a POS business in Nigeria?
1. Get a shop: This is the first step to starting a POS business. This will help your potential customers locate you quickly. The great thing about this business is that you don’t need a huge space. You could rent out a small space or use your house to carry out your transactions. If you have a shop, adding POS transactions to your list increases the chances of getting an influx of new customers.
2. The Location: This is an important aspect for you. Choosing a location with limited access to banks and ATMs like rural communities increases your chances of attracting more customers. You could target areas that are very crowded, like markets and school institutions. Make sure your location is accessible and can be easily identified as a POS service point.
3. Get a POS machine: You can get the POS machine through banks or other financial agencies like merchant banks.
4. Capital: Before going into the POS business, you will need some cash at hand for your POS withdrawal transactions as well as other miscellaneous activities.
Criteria for getting a POS machine
To get your own POS machine, you must meet the following requirements:
· A registered business name
· A business location
· An account number
· A passport photograph
· Business email and phone number
Once these criteria are met, you will be directed to a bank account officer after which your application will be processed within 72 hours of applying. Then the POS machine will be delivered to you within 14 days.
Cost of a POS machine in Nigeria
The price of a POS machine varies depending on the specification of the machine. It may be a 2G, 3G, or 4G POS machine. It ranges from the prices of 40,000 to as high as 200,000 naira
You can get a POS machine from banks in Nigeria like Zenith, First Bank, Access Bank, Ecobank, etc. These banks give free POS machines; you do not have to pay for the POS machine. However, terms and conditions apply. There are also bank charges that apply for every transaction you perform.
You can start your own POS business today and start making a daily income of at least 5000 naira. The POS business in Nigeria has become a very lucrative business option for many SMEs in Nigeria. Not only is the POS business in Nigeria profitable, but it is also not capital intensive. Do you have any questions or suggestions on SMEs in Nigeria? We would love to hear from you. Kindly drop them in the comments section below.