You can make up a niche for yourself by starting a POS business. A POS business is a type of business that involves funds transfer, cash withdrawal, sales of airtime, and bill payments such as DSTV, GoTV, StarTimes, and electricity bill payment.
It can also be called an agent banking business, it extends the services of financial institutions, thereby making it possible for people to perform banking services with ease.
A lot of people are already engaged in the POS business while some are looking to get started in the business. This post will provide you with the essential information you need to start a POS Business in Nigeria.
How Do I Start A POS Business?
Before you launch a POS business, you should have a host. A host is a financial institution, a partner through which you extend financial services to people. Examples of hosts are FCMB, GTBank, UBA Bank, AB Microfinance Bank, OPay, Kudi, Quickteller, Paga, etc.
After that, you should get a shop or a location for your POS business. It is preferable to have your business located in a populated or commercial area. Also, you can have your business in a rural area with little or no access to ATMs and banks.
Moreover, you need to have a POS machine. A POS machine will help you to process various transactions without restrictions. You can get a POS machine from your host. For instance, institutions like OPay and First Bank offers free POS machines, however, you must have met their requirements to get the POS machine.
Is POS Business Lucrative In Nigeria?
Thousands of financial transactions are done everyday and financial institutions such as banks and POS agents serve as intermediaries in these financial transactions. For every transaction you do as a POS agent, be it cash deposit or withdrawal, you are bound to get a commission from the transaction.
How Do I Become An OPay POS Agent?
Opay is one of the best financial institutions you can partner with to start your POS business. You can become an OPay POS agent if you meet their requirements. Their requirements are;
- A passport photo.
- Your Bank Verification Number (BVN).
- A Utility bill like an electricity bill or the receipt of any other bill that isn’t older than 3 months from that point in time.
- A smartphone and internet connection.
- Literacy and customer relation skills in an added advantage.
- A valid copy of your national ID card, international passport, or driver’s license.
How Do I get POS from my bank?
Many commercial banks in Nigeria do not fail to provide POS machines for their customers. However, POS machines are not made for everyone. POS machines are devices that help to make payments for goods and services.
They are provided for merchants who make countless transactions every day in their business. Some banks provide POS machines for different costs, others may provide it for free but will lay down strict requirements.
For instance, UBA Bank will give you its POS if you transact in over N35,000 per day or N1 million turnover per month. Apart from that, you have to have an active account with your bank; some banks will ask you to open or run a current account with them. Ensure that you visit your bank and request to know how to get a POS machine from them.
How much does POS cost in Nigeria?
If you are considering purchasing a POS machine, you may have to spend big to purchase a new POS with original quality. Currently, you can purchase a new POS machine in Nigeria for the price of N85,000 – N100,000.
How much is KUDI POS?
Kudi also provides POS machines for agents and people. They do not charge or sell POS machines, they offer it for free. However, this depends on the number of transactions you perform in their app. Their POS machine provision is strictly on a first-come, first-served basis. If you need the POS machine urgently, you can purchase it from their mobile app.
How does OPay POS work?
The Opay POS works like other POS machines, it can make card payments, accept, verify, and track payments. The Opay POS works with the Opay app.
The OPay POS is free of charge. Simply download the app and fill your details in the OPay agent form. Keep making transactions in the app, when you’ve made enough transactions, they’ll contact you to pick up your POS machine.
How do you pay with POS?
POS facilitates electronic payments, therefore, you can make payments for goods & services with your ATM cards, debit, and credit cards. You can use different e-payment cards such as InterSwitch Verve, Visa, eTranzact, and MasterCard.
How do you use a POS system?
To use a POS system, you must have a bank account. Your bank account must be synced to your POS to make transactions. Whatever transaction you do on the POS is processed from and to your bank account.
We hope that this POS business guide has helped you to know how to start a POS business in Nigeria. Before starting the business, we encourage you to make your research to understand the risks, the commission rates, and charges before venturing into the business.