How To Start Up A POS Business In Nigeria (2022 Full Guide)

Victor Obinali

02-04-2023 15:14:17

In almost every where you go to you would find a POS Business and this is not a new thing for any business which you wish to enter.

You should already know by now that no matter what business you are planning on entering lot of people must have already being into and started and more are yet to come into the business.

But the main thing that can make you successful is your own method and style in opening this business, it could be how you bring yourself out there, how friendly you are to customers and much more.

POS shops are random but I have seen people who earn a lot of cash from POS businesses so keep reading to get the best knowledge you need to know on this matter.

History Of POS

POS is known as Point of Sales, you should know this but it is not really necessary.

This business idea was brought about around the year 2013 and this is something that was introduced by the Central Bank Of Nigeria.

Central Bank Of Nigeria back then introduced the Agent Of Banking System and since then people have used it to end a lot of cash

One reason this style of banking was created was due to the fact that they wanted to end the long endless queues in bank.

How Does POS Business Works

POS agent provider serves as an agent to a bank depending on the bank you choose, the agent will be paying the bank fees for doing this.

The agent in the POS business provides consumers with a range of transactions to choose from, such as withdrawal, transfer, bill payment, or even opening a personal bank account.

They make it possible for customers to perform lot of banking activities with their card and this process is the same as going to an ATM machine.

You head to the POS shop input your bank name, your cash how much you wish to withdraw and your Four Digits pin, once the transaction is made you would be given a receipt in Paper form and you will be required to pay a service charge depending on how much you are working with.

How Much Do POS Agents Earn Daily

You should know that if a POS agent has a very good business location and promoting skills then they tend to earn up to NGN5,000 to NGN20,000.

POS Agents Earn from charge fees and the higher the money the higher the charge lowest charge fee is NGN100 NAIRA.

As previously stated, the bank or POS supplier pays the agent a daily or weekly commission.

This commission is determined by the number of transactions performed by the agent utilizing their wallet or service.

Is POS Business Profitable In Nigeria 2022

Yes this business is very profitable in Nigeria although we believe in the nearest future lot of POS shops would be opened making it hard for an average POS shop owner to earn cash.

You should know that you can still earn even though a million POS shops has being opened and this depends on your location and how attractive you make your own shop look.

If you are someone trying to get more transactions from customers but you use a simple canopy, chair and table then you should consider upgrading a bit to a shop and making it more attractive.

Most people tend to go to the post shop which has a good design and attractive shop with Air Conditioner and all this is because of how attractive the shops look try upgrading with the few money you earn from the start instead of consuming it.

Another way of earning as a POS owner is heading to a place where not much banks and pos shops are making you the only hope they have to get money because no one wants to go a 30 minutes journey to the bank to withdraw money.

Services Provided By POS Shops

The following are some of the services provided by POS Agents:

Withdrawing money from a bank account

Establishing a bank account

Deposit of funds

Payment of bills such as power, cable television, airtime, and so on

Transfer of funds

Enrollment in the BVN

Advantages Of Owning A POS Business

Affordable Capital

You can start up a POS business with as low as 50,000 naira and begin earning a lot of cash before having to add more cash.

Daily Customers

You should know as a POS business owner you will never lack a customer each day, because some one is looking for a place to perform transactions.

Side Hustle

This is a good side hustle for those looking to earn more cash with their already online business.

Disadvantages Of A POS Business

Insecurity

POS Agents can be targeted by robbers because they then to carry huge amount of money from the bank to their place of business.

Fraud

They can be prone to people who come mainly to carry out fraudulent transactions.

Electricity

You need electricity to get started with this business because your pos machine needs to be charged and Nigeria is a place where electricity is hard to get.

Bank Networks

No one wants to be victim to bank network while delaying the customer, but this is something that every POS agent is prone to each day

How To Start Up A POS Business In Nigeria

A financial institution authorizes a POS agent to provide mobile money services to consumers such as withdrawals, transfers, and bill payments.

Before you can become a POS agent, you must first select a POS service provider. In Nigeria, there are a lot of these. Here are a few of the most popular:

First bank

Wema Bank

Opay mobile bank

Bankly POS

Monie Point POS

Kudi bank

GTbank

Paga

Zenith bank

Access bank

Quickteller

Ecobank

Baxibox

UBA

You will need to have an account with any institution you wish to work with.

What Does It Cost To Start Up A POS Business

Location

This is the aspect which we can not stress enough you need a good location if you wish to earn from your pos business.

POS Machine

You can not start a business without a POS machine, you can get one for up to 30,000 naira.

It can be ordered from Jumia which is where we recommend buying from.

Available Cash

To be Able to do any transaction for someone no matter the amount you should have at least NGN100,000 to NGN300,000 for starters.

Official Documents

CBN has ordered a list of documents needed before you can start a legitimate POS business they include:

Valid means of identification like National ID Card, Voter’s ID Card, etc.

Passport photographs

Bank Verification Number (BVN)

Current Account references

Evidence of business registration (CAC Certificate)

Start-up funds/ capital minimum of NGN50,000

Tax Identification Number (TIN)

The Bottom Line

This leads us to the end of this article which we believe you must have gained a lot of knowledge from.

If you have any questions let us know in the comment section below.

173 Comments

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Bella Okiki Matthew

02-04-2023 15:14:17

Lovely

Akorede Bukola Mary

02-04-2023 15:14:17

Great content..thanks

Akorede Bukola Mary

02-04-2023 15:14:17

Great content..thanks

Akorede Bukola Mary

02-04-2023 15:14:17

Great content..thanks

Akorede Bukola Mary

02-04-2023 15:14:17

Great content..thanks

Fisayo Falusi

02-04-2023 15:14:17

Thank you so much for this. It is a lucrative business that someone can start doing.

Mercy Falusi

02-04-2023 15:14:17

Very Enlightening. Thanks for the tips

Chinonso Sunday

02-04-2023 15:14:17

Great

John

02-04-2023 15:14:17

Good

Goodnews Dominic Obott

02-04-2023 15:14:17

Nice

David

02-04-2023 15:14:17

Nice

ENEOJO EKELE

02-04-2023 15:14:17

This article has taught me how to start pos business

Gladys09

02-04-2023 15:14:17

How do I open pos

Gladys09

02-04-2023 15:14:17

Nice

Aniebiet Dennis Etefia

02-04-2023 15:14:17

Victor thank you for this well detailed explanation. I've been having a plan to set up a POS business

Abundant Smart

02-04-2023 15:14:17

wow so its that easy

Abundant Smart

02-04-2023 15:14:17

wow so its that easy

Agbo Patrick

02-04-2023 15:14:17

Interesting info

Popoola Oladayo

02-04-2023 15:14:17

THANK YOU FOR THE INFORMATION.

Nwufo Miracle

02-04-2023 15:14:17

Nice one

Tunde Alabi

02-04-2023 15:14:17

Good business indeed

Xcite Me

02-04-2023 15:14:17

Cool

Omolola Falusi

02-04-2023 15:14:17

Thank you for sharing tips on how to successfully start and run a profitable pos business.

Eboigbe Daniel

02-04-2023 15:14:17

Wow 😳

Yetunde Falusi

02-04-2023 15:14:17

This is a good business idea to explore. Thank you for the tips shared in this article.

Aniebiet Etefia

02-04-2023 15:14:17

Victor, thanks for this well detailed information. I've been having plans to set up a POS business

Emmanuel Uchenna

02-04-2023 15:14:17

Thanks for sharing

Emmanuel Uchenna

02-04-2023 15:14:17

Lovely to hear

Gladys09

02-04-2023 15:14:17

How do I open pos

Ngozi Awulotu

02-04-2023 15:14:17

Nice work

Ngozi Awulotu

02-04-2023 15:14:17

Beautiful work

Aliyah Olayiwola

02-04-2023 15:14:17

Pos article nice one

Anthony

02-04-2023 15:14:17

Wow ooo