In this post you’ll find the detailed guide, how to start a POS business in Nigeria, how profitable POS business is & best POS machine in Nigeria.
It’s great you want to learn more about POS business, one of the biggest ways to succeed in any business is to carry out research to know if it’s feasible or not before you get into it.
It’s part of the research that brought you to this page as it’s obvious you search for it. Hence in this post we have taken our time to curate the detailed guide of how to start a POS business in Nigeria, it’s profitability and the best machine to start with.
What is POS Business?
Before we Continue with the article How to start POS Business in Nigeria let first explain what the POS is.
Agency banking, also known as POS business, is a financial institutions(Banks) way of bringing banking closer to its customers and ensuring currently excluded individuals become part of their financial world. It plays a key role in the actualization of the cashless banking objectives as they become a more popular means of receiving payments and transacting business in Nigeria.
POS business helps make banking more accessible to every Customer irrespective of where they are.
Let say you are in a rural area or an area where banks are limited POS business can serve as an intermediator between you and the bank. POS business can help you person some transactions such as withdrawal, transfer of money or Checking of your account balance and may more.
Point of Sale Terminals, commonly called POS is a portable machine that facilitates payments of goods and services at any merchant location using payment cards issued by banks on the network
Now that you understand what POS business is let’s take a look at how you can start a POS business in Nigeria
How to start POS business in Nigeria
Meet the bank requirements
To be eligible for a POS machine, you must meet the following requirements:
- Have a valid means of identification, such as a national ID card, driver’s license, or passport.
- Have a registered business name.
- Have a physical location for your business.
- Have a working capital of at least N50,000.
- Have a bank account with a minimum balance of N5,000.
Get in touch with your preferred financial institution
This simply means getting in touch with your Bank or your POS Merchant like Moniepoint, Opay etc, Once you meet the requirements, you can contact your preferred financial institution to apply for a POS machine. The process of applying for a POS machine varies from bank to bank, so it is important to do your research and find a bank that has a process that is easy to follow.
Get a POS machine
Once you have been approved for a POS machine, you will need to pick it up from the bank or from your POS Merchant(Moniepoint, Opay etc), if you are planning on using Moniepoint their POS machine cost 21,000naira only. The bank or Mer will provide you with instructions on how to set up and use the POS machine.
Secure a valuable location
The location of your POS business is important. You want to choose a location that is easily accessible to potential customers, an idle location that will be close to the market, or a busy area with fewer POS Operators there. You also want to choose a location that is safe and secure.
Market your business
Once you have your POS machine and a location, you need to start marketing your business. You can do this by putting up signs, handing out flyers, or advertising online.
Provide excellent customer service
One thing that will set your business apart from other vendors around is excellent customer service, he key to success in any business is providing excellent customer service. This is especially important in the POS business, as customers will be trusting you with their money. Make sure to be friendly and helpful, and always be willing to answer questions.
Starting a POS business can be a great way to make money in Nigeria. However, it is important to do your research and plan carefully before you get started. By following the steps above, you can increase your chances of success.
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More tips for starting a POS business in Nigeria:
- Choose a bank Or merchant that has a good reputation and offers competitive rates.
- Make sure the POS machine you choose is compatible with the bank’s network.
- Get training on how to use the POS machine.
- Market your business to potential customers.
- Provide excellent customer service.
- Be patient and persistent. It takes time to build a successful POS business.
How profitable is POS business in Nigeria?
POS business is profitable in Nigeria. The POS business is a growing industry in Nigeria, and there is a high demand for POS services. POS businesses can make money by charging a commission on each transaction.
The commission rate varies depending on the bank and the type of transaction. For example, the commission rate for a debit card transaction is typically lower than the commission rate for a credit card transaction.
In addition to charging a commission on transactions, POS businesses can also make money by selling other products and services, such as airtime, data bundles, and insurance. POS businesses can also earn money by advertising on their POS machines.
How to make your POS business profitable
The profitability of POS business depends on several factors, this includes:
- Location: The location of your POS business is important. You want to choose a location that is easily accessible to potential customers. You also want to choose a location that is safe and secure.
- Number of transactions: The number of transactions processed is one of the most important factors that will affect the profitability of your POS business. The more transactions you process, the more money you will make.
- Commission rates: The commission rates charged by banks vary. You want to choose a bank that offers competitive rates.
- Customer service: Excellent customer service is essential for any business, but it is especially important for POS businesses. Customers will be trusting you with their money, so you need to make sure they feel comfortable and confident doing business with you.
If you are considering starting a POS business in Nigeria, it is important to do your research and plan carefully. By following the tips above, you can increase your chances of success.
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How to start pos business with Opay
Here are the steps on how to start a POS business with OPay:
- Download the OPay app. You can download the OPay app from the Google Play Store or the Apple App Store.
- Create an OPay account. Once you have downloaded the app, open it and create an account. You will need to provide your name, email address, phone number, and BVN.
- Upgrade your account to KYC Level 3. In order to be eligible for a POS machine, you need to upgrade your account to KYC Level 3. To do this, you will need to upload a copy of your ID card, a recent utility bill, and a passport photo.
How to get Opay POS Machine
- Apply for a POS machine. Once your account has been upgraded to KYC Level 3, you can apply for a POS machine. To do this, go to the “Merchant Apply” section of the OPay app and fill out the application form.
- Wait for approval. Once you have submitted your application, OPay will review it and approve or deny it within 24-72 hours. If your application is approved, you will receive your POS machine within 24-72 hours.
Requirements for Opay POS Machine
Here are some of the requirements to get a POS machine from OPay:
- A valid ID card, such as a national ID card, driver’s license, or international passport.
- A recent utility bill.
- A passport photo.
- A BVN.
- A business location.
Once you have received your POS machine, you can start accepting payments from customers. You will earn a commission on every transaction that you process.
Frequently asked questions about POS Business
Can I start POS Business with 20k?
You’ll need at least 50k to start POS business in Nigeria as these is the requirements for most of the banks in Nigeria for you to start-up a POS business.
How much do I need to start POS business in Nigeria?
The idle amount to start POS business is 50,000(Fifty thousand naira) in Nigeria. This can vary depending on the Bank or merchant you want to register with.
Which bank is the best for POS Business?
There are many banks that offer POS services in Nigeria, and the best bank for you will depend on your individual needs and preferences.
According to Bard here are the Best banks for POS business:
- UBA: UBA is one of the largest banks in Nigeria and offers a variety of POS services, including low transaction charges and a high daily target.
- FirstBank: FirstBank is another large bank with a wide range of POS services. They offer free POS machines to new agents and have a network of over 100,000 agents nationwide.
- Zenith Bank: Zenith Bank is a popular choice for POS businesses because of their competitive transaction charges and high daily limits.
- FCMB: FCMB is a smaller bank that offers POS services at a lower cost than some of the larger banks. They also have a network of over 50,000 agents nationwide.
- Access Bank: Access Bank is a large bank with a wide range of POS services. They offer free POS machines to new agents and have a network of over 100,000 agents nationwide.
What to Consider when choosing Bank for POS Business
When choosing a bank for your POS business, it is important to consider the following factors:
- Transaction charges: The transaction charges charged by different banks can vary significantly. It is important to compare the charges of different banks before you choose one.
- Daily target: Some banks have a daily target that must be met in order to avoid additional charges. It is important to check the daily target of different banks before you choose one.
- Network of agents: The network of agents that a bank has can be important if you are planning to operate your POS business in a rural area. It is important to check the network of agents of different banks before you choose one.
Once you have considered these factors, you can choose the bank that best meets your needs.
If you have any question related to starting a POS business in Nigeria kindly feel free to drop your question in the comment section below, we wish you good luck as you embark on your POS business journey.