There are lots of ways to make legit money in Nigeria and POS Business is one of such amazing ways. POS Business is a cash minting business that has been going on in Nigeria for some time and is now gaining a lot of cognizances. So if you want to start your own POS business, we will be teaching you in today’s article on How to Start a POS Business in Nigeria.
These days, a lot of people are interested in setting up a POS Business in their areas due to the thriving of POS in Nigeria. If you have ever stood under the sun or showers, just to withdraw your money, you will know how important the POS Business is. Though POS agents are not directly employed by the banks, they help the banks in providing financial services for an agreed commission with the financial institutions.
What is POS
You might have been hearing people talk about POS a lot of times and you wonder what it is. POS is actually the acronym of point of service or sale which is a banking service that allows local debit cardholders to make payment for goods and services mostly in a retail location. A POS machine is needed for the service transaction to take place.
The POS service is a very good automated product because it mitigates the stress of carrying money around. It also helps in transacting business directly with cash. One advantage of the service is that it is fast and also reliable as it gives instant notification of payments and transactions. Customers receive alerts whenever they do cash transfer with a POS agent, so you can see that it is reliable.
The service is not just for payments and bank transfers, but it is also customized for the payment of bills such as airtime, that is recharge card printing, GOTV, DSTV, School fees, rent, tax payments, and the list goes on. POS machines can also be used to make direct payments in offices, filling stations, shopping malls, pharmacies, eateries, small businesses, etc. POs business started in the year 2013. It is more successful in rural areas, semi-urban areas, the unbanked, and underbanked communities.
How Lucrative is POS Business?
The business is actually very successful. This is because of the increase in the number of users it attracts daily. The number of people who patronize the services increases every day due to relative bank stress. If you have ever been to the ATM and experience how frustrating the process can get, it should tell you that the business is thriving well.
The POS business has provided lots of jobs for thousands of people in Nigeria especially young entrepreneurs and business people. The business requires less capital and will grow quickly if all measures are put in place.
Steps on How to Start the POS business
Like every other business, the POS business involves proper preparation, capital, location, and the business environment. Follow these steps to enable you to start up your business:
Step 1: You Should have a Business Already
The POS business involves finance and therefore has to do with trust. To be eligible, you must have a business that has been in existence for at least 12 months. You also need a shop or office which you will be operating from. After that, you must be registered with the Corporate Affairs Commission as any of the following:
⦁ Sole Proprietorship.
⦁ Cooperative Societies.
⦁ Limited Liability Company.
⦁ Public Entries.
⦁ Trusts or any other entity aside faith-based or NGOs.
Step 2: Approach a Bank
Almost all Nigerian banks allow agent banking services. So, the moment you decide on the bank you want to work with, the next thing is for you to visit the bank and get their required details. The CBN guide allows being an agent for any number of banks that you can serve. You will have to fill in some documents/agreement forms and also have an account for a deposit for the purpose of the business and provide some documents as part of the requirements for the proposal. Some of the documents required are
⦁ 2 passport photographs.
⦁ Evidence of business registration (CAC Certificate).
⦁ A minimum working capital of N50,000.
⦁ Valid means of identification like a driver’s license, National ID card, International passport or Voter’s card.
⦁ 2 current account referees.
⦁ Credit Bureau Report.
⦁ Memorandum and Article of Association.
Step 3: Get the Equipment
If your application to the bank has been considered, the bank will supply the needed tools and equipment for the commencement of the business. Aside from the mobile phone, the other materials are provided by the bank. these are the equipment needed:
⦁ point of sale Terminal; a portable device that makes payments of goods and services at bank agent locations easy by using payment cards.
⦁ A card reader.
⦁ Barcode scanner for scanning of bills for the transaction of payments.
⦁ personal identification number (PIN), and others.
Step 4: Location
It is advisable to choose a location with limited banks or ATMs for you to be successful. It is also better to choose strategic locations like public markets, event centers, and bus stops. These will help to affect your daily profit.
You can construct a shed or shop once you get a good location. Be sure to create enough space for swift movement for you and the customers. To advertise the services that you offer, have a banner displayed at the entrance. For safety reasons, you can have a purse around your neck or a safe with a strong lock to prevent theft and burglary.
Step 5: Render services
The services are rendered with the use of POS terminals, card readers, mobile phones, and bank linked mobile wallets for real-time transactions. Once all these are available, you can start providing the following services:
⦁ Cash deposit and withdrawal.
⦁ Balance inquiry.
⦁ Funds transfer.
⦁ Payment of bills.
⦁ Generation and the issuance of a mini statement.
⦁ Cash disbursement.
⦁ cash repayment of loans.
⦁ Agent mobile payments.
Benefits of POS Business in Nigeria
POS business has lots of benefits which will be listed below
⦁ Job creation.
⦁ Business opportunities for entrepreneurs.
⦁ Reducing bank costs.
⦁ Extension of bank services to a wide range of customers.
⦁ Account acquisition of banks is increased through POS services.
⦁ Creating a medium of transfer thereby helping in bank decongestion.