How To Start A POS Business In Nigeria.
POS business can be otherwise known as agent banking business. It involves the transfer of funds, withdrawal of funds, sale of recharge cards and bill payments like GoTv, DSTV, Startimes, and NEPA Bill services.
This business is an extension of services offered by varous financial institutions like banks through which customers get convenience. Therefore the fee you charge customers for this services is called convenience fee.
The central bank of Nigeria in a bit for financial inclusion has thrown open this opportunity. An avenue to create wealth and employment for the teeming numbers of unemployed youths.
Furthermore, this business thrives in areas where there are limited or no banks or ATMs. People will always be in need of money for various needs and will be glad to go to where they can be quickly served at a minimal cost.
Benefits of POS business in Nigeria
- Achieve financial inclusion
- Reduce the cost to serve
- More Account acquisition
- Business Opportunity
- Create Jobs for the unemployed
- De-congest bank premises
- Serve a wider range of customers
- Make customers happy
Why POS Business in Nigeria is Profitable
This business involves much liquidity, you must have readily available cash to give out. Because customers will come more for withdrawals than fund transfers. The services you will be offering includes;
- Fund Transfers
- Bill payments
- Sale of Recharge cards or Top up to all networks without buying vouchers and
- Account Opening
Apart from Recharge which is free from charge other services are chargeable. But make sure you don’t overcharge you could be competing with other owners of POS machines or breed competition in future.
Once you are in a strategic location where they are limited or no ATMs around, customers will prefer coming to you for quick services.
Steps to start POS Business in Nigeria
- Have An Exiting Business To Merge POS With
- Get a viable location
- Be tech savvy
- Get a reliable host
- Request for your POS Machine
- Make up banners and advertise your business
- Open other locations and expand.
Have An Existing Business
Since POS business has to with cash, to be eligible, you must have an existing business in operation at least for a period of 12 months. Also, you must have a shop or office from which you operate. Then, you must have been registered with the Corporate Affairs Commission as any of the following;
- Limited Liability Company
- Sole Proprietorship
- Cooperative Societies
- Public Entities
- Trusts or any other entity aside faith-based or NGOs.
Getting A Host
You can start POS business by getting a host. A host is a financial institution through which you extend their services to your customers. Good hosts include;
- First Bank
Your location is very strategic to your success in this business. A location where there are limited or no ATMs or Financial institutions like Banks will do well more than area where there is ATMs or flooded with POS Already. Apart from that, they should be enough room to contain your customers, a furniture divider between you and your customers. Create a place where customers will feel free to carry out transactions.
Get a POS Machine:
Most of your customers will come to make withdrawals, so a POS machine is really important. A new POS machine goes for N85,000 – N100,000 only. First Bank offers free POS machines in Nigeria as of the time of this post, you just have to meet their requirements. To get one visit any First Bank Branch closest to you and make more inquiries about Agent Banking.
Getting a banner is very necessary, since For a business to be well known you need to create awareness, you won’t sell anything if people don’t get to know the goods or services you offer. Go get a well-designed banner at affordable amount of money.
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