The emergence of the POS machine which has made agent banking in Nigeria very lucrative. The POS business in Nigeria is one new industry that has been helping the middle class pull through this period.
One will ask how can I Start A POS Business In Nigeria with the little capital I have and what are the easiest way I can actually begin this business.
To begin POS business in Nigeria, you are required to know some certain thing to enable you not to make a mistake.
In this article, we will be guiding you through how To begin your own POS Business In Nigeria. Please note that every business has its own risk.
Before we proceed, let us look at the key terms we will be talking about.
What is A POS Business All about?
Point of Sale Mechines (POS) are used by businesses, banks, hospitals to make and recieve payment for services rendered or recieved.
Before now, the POS machines are used in banks for transfers, bill payments, recharging airtime, payment of rent, taxes, Game booking, etc.
Due to the inability of banking service to be extended to rural areas of the country, the POS machine system of payment was introduced to enable individuals to perform key bank-related services in the comfort of their locality.
List of POS host to Use
Aside from banks, there are other organizations you can use as your host. They include;
Cost of a POS machine
Some hosts like the First bank offer the machine for free but you need to meet up with their targets. Aside from getting it for free from the first bank, you can also buy it at the rate of N85000 – N100,000 only depending on who you are getting from.
Some benefit of running a POS business in Nigeria
- The POS business create jobs for individuals
- Bank decongestion
- Business opportunities for individuals and businesses
- Reduces running cost for banks
- Extention of Banking services, etc.
What are the requirements to start a POS Business
Before we continue, please note that the requirements differ based on banks. We list some of these requirements to enable you to know what and what that might be involved during the starting process.
- Tax Identification Number
- Two current account references
- National ID card, driver’s license, or another official means of identification
- Evidence of business registration, e.g. a CAC certificate
- Bank Verification Number
- At least ₦50,000 of working capital
- Two passport photographs
After the Requirement whats next!
After the bank must have gone through the documents you sent to them, the next thing is to supply you with your requirements you need to run your business.
Some of the equirements includes;
- PIN keypad
- POS machine
- Card reader
- Barcode scanner
How lucrative is POS business in Nigeria
As a Point of Sale Machines (POS) owner, you become a banking agent and you make money through service charges and commission from the bank you are cooperating with.
These commissions vary based on the amount an individual is transferring or withdrawing at your POS stand. We advise you to make your charges a bit minimal to enable customers to always consider your stand.
In Conclusion
Those that want to know more about how to Start a POS business In Nigeria need to follow the guidelines and also make their own effort by going to the bank to find out more.