Like every other business, starting a POS business in Nigeria comes with its own challenges. The truth is it’s rare for start-ups not to face one thing or the other in business. Most successful businesses today started from somewhere small and they faced their own obstacles.
The same way we have successful businesses, we also have businesses that have failed. What makes the difference is the fact that one- the successful businesses never quited inspire of the challenges that came their way.
So if you are starting a POS business in Nigeria, be sure that you will face some challenges; at the same time, you have all it takes to overcome them.
In my last posts on POS, I wrote: How to start a POS business in Nigeria.
I also touched on the POS companies and agents in Nigeria.
However, in that post, I didn’t discuss the challenges you may likely face when starting up a POS business in Nigeria.
In the post I will show you common problems associated with starting a POS business and how you can overcome – and keep getting profit.
Let’s dive in…
Challenges people face when starting a POS business in Nigeria
- Cost of acquiring POS terminal
- Identifying a low competitive location
- Delay in the reversal of money
- Network issues
- Banks/customers problems
- Power Supply
1. Delay In The Reversal Of Money
This happens a lot where the card of the person making withdrawal is debited and the refund is not made immediately.
Although this issue used to happen to the banks as well, especially in those days that you will have to fill a form, wait for some days before you can get the ATM deducted from your account when the transaction didn’t go through. Now the story has changed for good from the ATM side of the matter but however, POS operators are still faced with this issue.
Due to the failure in the system in reversing the wrongly debited amount, many customers have stopped patronising the POS agents all over the country.
To avoid this, take time to review these machine vendors and invest in good POS.
Always restart the machine after a long hour of usage.
2. Networking Issues
Networks can pose a lot of problems for POS business startups. I have personally experienced a situation where I had to wait for over 15 minutes just because the post agent was looking for a network to process the information. Poor Network can cause a delay for customers, making them look for alternatives. It can also frustrate the operator as well, especially when there are many customers to attend to.
3. Cost of acquiring POS terminal
Starting capital is always the problem start up businesses face. While it is very easy to put up a kiosk together and locate a safe place, the price of POS can be a challenge for most people who struggle to eat daily. Of course, many companies claim to give out POS for free, but you may have to wait a long time before you can secure one.
To avoid waiting time, you will be asked to pay a certain amount of money
On the other hand, the banks issue POS Machines for free to their agents. However, you must be above 18 years of age and you must meet all of their requirements.
4. The POS Issuing Bank
One of the challenges that we cannot separate from the POS business is the issuing bank. Networks within the banking system itself can stop transactions from going into completion.
If you are familiar with ATMs, you will discover that a machine that is working fine for another bank is not available for your own bank to withdraw or do other forms of transactions.
Although some of these challenges come with Interswhich, it is the bank that causes most of it.
Way around this is to get a good POS Machine and review the issuing companies/banks before purchasing it.
Again, I’m not just making this up, my card was once compromised after using it at a POS terminal. This is possible because a POS Machine can easily be hacked especially when the issuing company does not do regular upgrades, install anti malware and antivirus on the machines.
In order not to land in police custody, make sure that the company you are buying a POS terminal from provides anti malware and antivirus for your POS terminal.
Because of the nature of the POS business, it is prone to attack. Many people out there are only after the money you manage to earn. To avoid this, locate a place close to where securities are and installation.
7. Identifying a low competitive location
Of course this can sometimes be challenging because you don’t want to cite your business at a location with many operators. The lower the competition the higher the number of transactions that will be made and the revenue from the transactions.
8. Power supply
Another problem is getting a source of power to charge the POS Machine. Many places in Nigeria, especially the villages lack good and regular power supply creating a huge problem for POS operators.
Dealing with and handling customers alone is a huge challenge. Many customers have the motive that they can do anything since customers are always right. Many will come with faulty cards, or cards with low insufficient funds, thinking they still have credit. This usually leads to a waste of time.
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