How To Start POS Business In Nigeria

  Although the POS business is now rampant but yet we can’t just deny the fact that it is still a lucrative business. And if you are still wondering how to start POS business in Nigeria, then here is a detailed information to guide you through.

What is POS business?

Point of sale business popularly known as POS business is an easy and convenient way introduced by the Nigerian banks for making cash transactions in Nigeria.

No doubt the POS business is taking over ATMs and there by reducing stress on both bankers and their customers.
POS agents provides or deposit cash to  customers for a little token which is their commission or profit  through the terminal machine.

And of course the long queues at ATM machines and scarcity of cash at times can be very stressful and tiring, and more over, it reduces cost at times especially when there is no Automated Teller Machines (ATM) around your vicinity. So the POS is a good alternative.

Is POS Business Profitable?

According to nairametrics, the number of POS payments increased significantly from 34 million in 2015 to 438.6 million in 2019, and as of 2022 the number has automatically increased. NIBSS also reported in 2020 that vendors and Mobile Money Operators (MMOs)  processed around 655 million POS transactions estimated around ₦4.7 trillion ($13 billion), a 50% increase from 2019.

The POS business was introduced to secure monetary inclusion and a progressive cashless economy by the Central Bank of Nigeria in 2013.

Although more people has already ventured into the POS business, but that doesn’t make it any less lucrative. In fact If you are looking for a more profitable and lucrative business on a small scale with low capital, then I will advise you start up a POS business because a lot of people are patronizing POS agents every now and then in order to break away from the long bank or ATMs queues to carry out transactions.

The POS business is indeed a profitable business in Nigeria right now which can be done in remote places that have no bank branches. You don’t have to worry about how to start POS business in Nigeria, because this article will be giving you all the necessary information you need on how to  start POS business in Nigeria.

Is it capital intensive?
How Much Can I Earn From a POS Terminal?

Unlike other businesses that require a lot of investment, a POS business does not require a lot of capital to start and you can start making money right away. All you need is a really good location where people can find it easily. On average, POS terminal agents can earn between N10,000 and N20,000 per day depending on their location and good customer relations.

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POS terminal type

With the POS terminal, you can withdraw cash, pay in cash, pay utility bills and more. During the redemption process, the agent enters new transaction information and then asks the customer to enter a four-digit password to complete the transaction.

The POS terminal uses mobile data to print a confirmation receipt immediately after the transaction is completed. It also prints a “Transaction Receipt”  if the transaction cannot be completed it also prints out a ‘transaction declined receipt”. Cardless transactions are possible by transferring money directly to a designated account without a payment card.

There are three types of payment terminals with different functions and physical characteristics

  • Mini POS Terminal:
How to start POS business in Nigeria
Mini POS

This terminal looks like a computer and is portable, cheap and easy to carry. Can be carried without weight or bag. It has functional buttons and a narrow display. It can perform basic POS functions and requires an internet-connected smartphone and a Bluetooth connection. It doesn’t have a printer. After entering the payment card, the transaction is also activated by entering the transaction details through the smartphone app. However, the user enters a four-digit PIN code into the terminal.

  • Existing POS Terminals:
How to start POS business in Nigeria
Existing POS

This is the most common type first introduced to the Nigerian market. Additional function keys and a wider square display allow you to enter and activate transactions while connected to the Internet. Automatically print receipts at the end of each transaction.

  • Android POS Terminal:
How to start POS business in Nigeria
Android POS

This type looks and works like a 7-inch smartphone. The device can perform all the functions of a traditional POS terminal, display notifications, allow app installation, scan barcodes and more. Because it runs on a powerful operating system, can connect to Wi-Fi, and has 4G network capabilities, it processes transactions quickly.

Startup Cost And How To  Start  POS Business In Nigeria

If you are still confuse on how to start POS business in Nigeria, there is no set amount to start a POS business in Nigeria, but the location of the setup can vary. Or there are shops, stalls, umbrellas. The main cost is the cash with which you can withdraw cash. So buy a new POS terminal which will cost between N25,000 to N60,000.

Although, there are some companies that offer their POS machines at little or no cost at all, you just have to reach their requirements. Example of such companies are Dataway at N10,000 and MTN (MOMO) at zero cost.

However, Dataway offers an affordable, unconditional and refundable 30% cancellation fee for just $10. You can always return the POS terminals. If it doesn’t work, you can get your money back with no damages.

How Do I Really Get A POS Machine

Like stated earlier, there are different companies you can get the POS machine from, and their price, transaction charges and commission also varies. Here is the list of some companies

Dataway
MOMO
First monie
Moniepoint
Kudi
Palmpay
Xlarex
Baxi

These are the list of the most popular POS in Nigeria, you can contact their customer cares on Facebook and Twitter, for more directives you can also chat us up via email @ [email protected] .

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Conclusion

POS business is a very lucrative and profitable business, and we just can’t deny the fact, although there are some certain things to put in to consideration before starting up a POS business, things like location and good sense of humor.

Although people tend to ask for help on how to start POS business in Nigeria this days, but am confident enough that this is a perfect article to guide you through.

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