POS MachinesBusiness Ideas

How to Start a POS Business in Nigeria 2022

The POS business in Nigeria is booming and helping a lot of youths out there in the country to earn a living. It’s one of the legit businesses that pay daily, in fact hourly.

POS business in Nigeria does need strategic planning especially location, which is one of the major determining factors. Because, a POS business is more profitable in locations where there are a limited number of banks, places where ATMs are not enough to serve the community’s financial needs, or where there is a large population but not enough banks to serve the people.

Pos business is not the only business you can do. Check out my business series on how to make money from peanuts burger production and selling.

Many people benefited from the Covid-19 pandemic when the whole nation was locked down. Banks were not operating and even there was no movement. And the only option for people, both in the cities and villages was the POS machines and MoMo agents by MTN Nigeria.

Full Meaning of POS Machine

Full meaning of pos machine

POS means Point of Sale. It is a mobile banking system introduced by many of the banks in Nigeria and other fintech companies such as Moniepoint POS Agent.
It is a means to empower many Nigerians to earn extra income while selling their physical products in shops or kiosks. 
POS devices and MoMo agent “online” POS are an extension of the services offered by financial institutions such as transfer of funds, withdrawals, deposits, and payment of bills.

POS Agents

POS agents are licensed and authorized to carry out transactions for customers from airtime sales, bill payments like GOTV, DSTV, Startimes, PHCN, and other utility bills to transferring money and making withdrawals. In the process, the agent gets his commission and the customer is happy because instead of spending hours in the banking hall or queuing up at an ATM point, POS transaction is a matter of seconds.

Read More About POS Agent: How to Operate POS Machine in Nigeria

You can easily find POS devices in places where goods and services are sold/rendered; places like retail shops, offices, supermarkets, fuel/gas stations, pharmacies, eateries, etc.

If you’re interested in starting a POS business in your locality within Nigeria, then you have found the right article to guide you as you make those decisions.

Read: Parallex Bank POS Charges and Account Information

Read Also: How Much is a Washing Machine (Front Loading & Top Loading)?

Since the POS business began in 2013 after the Central Bank of Nigeria released its guideline on the operations and management of the business, it has thrived most in the rural areas, semi-urban centres, the unbanked and underbanked communities across the 36 states of the federation. 

If you already have an existing small business where you sell your products and services, you can sign up on a POS platform and double your revenue.

How to start a pos business in nigeria 2022 - ng job alerts

How to Get a POS Machine in Nigeria

Since the POS business began in 2013 after the Central Bank of Nigeria released its guideline on the operations and management of the business, it has thrived most in the rural areas, semi-urban centres, the unbanked and underbanked communities across the 36 states of the federation.

If you already have an existing small business where you sell your products and services, you can sign up on a POS platform and double your revenue. If you’re asking: How do I get a POS machine in Nigeria, How to buy a POS machine in Nigeria, read on to find answers to your questions.

Get Grant for your business: Available & Ongoing Grants in Nigeria for Businesses [2022 Updated]

Here’s how you can get POS Machines

Step 1: Have An Existing Business or office

It is important that whoever is applying for POS has an existing business that’s earning him cash.

The process of getting POS machines in Nigeria is pretty much easy and fast. But you must show proof of your business to the issuer, that is the bank or the legal financial technology companies

Your businesses must have been in existence for at least 12 months, and 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 entities;

  • Limited Liability Company
  • Sole Proprietorship
  • Partnership
  • Cooperative Societies
  • Public Entities
  • Trusts or any other entity aside from faith-based or NGOs.

The above requirements are the beginning of the step for getting a POS business and serving as a bank agent is possible.

Step 2: Approach A Bank or fintech companies

Virtually all Nigerian banks allow agent banking services. As soon as you decide on the bank of your choice, the next thing is to approach the bank and get details of their requirements. The CBN guide allows being an agent for as many banks as you can serve.

The next step is for you to choose the bank you want to partner with. Whichever bank, you will be required to fill out some documents/agreement forms on the transaction conditions. 

After this, the bank will review your application in line with CBN, internal criteria and proceed to the next stage provided you meet all requirements.

Requirements for POS Business

Some of the required documents include;

  • Valid means of identification e.g Driver’s license, National ID card, International passport or voter’s card.
  • BVN
  • 2 passport photographs
  • 2 current account references
  • Evidence of business registration (CAC Certificate)
  • Tax Identification Number (TIN)
  • Memorandum and Article of Association.
  • Credit Bureau Report
  • A minimum working capital of N50,000

Step 3: Get The POS Device

Here is what you will be given 

  • Point of Sale Terminal; a portable device that facilitates payments of goods and services at bank agent locations using payment cards.
  • Card reader
  • Barcode scanner to scan bills for bill payment transactions
  • Personal identification number (PIN) etc.

Step 4: Location

To really make money from this business you’ll need to find a strategic location for your POS business. POS business works well in areas or communities where there are not enough banks and ATMs. A big marketplace is also a good place to profitably make money from POS business. Because market men and women don’t have the time to go to banks or queue up at ATMs.

Step 5: Create POS Banner Listing Your Services

The business is rendered through POS terminals, card readers, mobile phones, and bank-linked mobile wallets for real-time transaction processing.

You will need to create a banner for your POS business. There are many POS banner samples that you can use to easily create one for yourself.

This is part of marketing strategy; you need to create awareness and let people know from afar that you offer pos services. Here are the services you can list on your pos banner and start rendering them, attracting customers to yourself, and making extra money in return.

  • Cash deposit and withdrawal
  • Balance inquiry
  • Funds transfer services (local money value transfer)
  • Bill payment (taxes, utilities, tenement rates, subscriptions, e.t.c)
  • Generation and issuance of a mini statement
  • Cash disbursement and cash repayment of loans
  • Agent mobile payments/banking services

How to Use POS Machine

How to start a pos business in nigeria 2022 - ng job alerts

Using a POS machine is simple and straightforward.

As an agent, when a customer requests that you help him handle transactions like withdrawal, transfer, or bill payment, you collect his debit card.

You select the type of transaction on the POS device and enter the amounts, insert the debit card, and ask the customer to enter the four-digit pin secretly. 

While you wait, the General Packet Radio Service (GPRS) connects with the bank’s server to authorize and complete the transaction.

Note, not in all cases that the transactions will go into completion. Whatever the case, the device will immediately print out a receipt.

Point of sale (POS) systems can be connected to your bank account. If you have a bank account and you want to link it to a POS system, you’ll need to fill in an application form along with the following documents:

  • Valid means of identification e.g Driver’s license, National ID card, International passport or voter’s card.
  • BVN
  • 2 passport photographs
  • 2 current account references
  • Evidence of business registration (CAC Certificate)
  • Tax Identification Number (TIN)

Your bank account manager will then help you to link your account to a point of sale machine (POS) that will be given to you at no cost. Once you get your POS machine you can begin carrying out financial transactions in your store.

How Do POS Agents Make Money?

How to start a pos business in nigeria 2022 - ng job alerts

The POS business is an opportunity to make money in Nigeria. It’s one of the business ideas that can earn you a stream of income daily if not hourly. POS agents make their money through:
Commission – Banks pay POS agents commission based on the volume of transactions it can range between N50 and N100 on transactions between N1,000 and N5,000. And increases as the volume (amount) of transactions increase
Service Charges – POS agents can also charge their customers a certain amount on bill payments, taxes, and subscriptions.
Float – POS agents can also make use of cash deposits, and net of withdrawal for their primary business.

How much is a pos machine in Nigeria?

How to start a pos business in nigeria 2022 - ng job alerts

Ever since the POS was introduced in Nigeria in 2012, the Central Bank has deployed POS machines to over 500,000 terminals.
You might want to ask what the price of a POS machine is in Nigeria. POS price is free of charge to get in Nigeria. But, you will have to charge for every transaction you accept with the use of the machine.
You don’t have to pay a price for a POS Machine because your bank will issue it to you free of charge.
Examples of banks include:

Zenith Bank POS

To get POS machines from Zenith Bank

Before you can get a POS Machine from Zenith Bank, you must have held a current account with them for a minimum of six months prior to your application. 

Here are the things you need to fill in the POS application form:

Business Owner Account Number

Business Email Account

Phone Numbers and

Other minor details

You will be required to sign a POS agreement document with Zenith bank. Once you do that, your POS machine will be ready for collection.

To get POS machines from GTBank

Before you can get a POS Machine from  GTBank, you must have a current account.

Here are the things you need to fill in the POS application form:

Business Owner Account Number

Business Email Account

Phone Numbers and

Other minor details

You will be required to sign a POS agreement document with Zenith bank. Once you do that, your POS machine will be ready for collection.

First Bank POS

To get your POS Machine from FirstBank, you must also operate an account with them. Visit any FirstBank branch and request and complete your POS request form. 

First Bank will provide you with POS Machines within a week for free.

POS Charges in Nigeria: 0.75% to a maximum cap of N1,200.

If you own a shop and want to set a point of sale system, such as a restaurant/supermarket POS machine, you can buy a POS machine on jumia or jiji Nigeria for as low as N70,000.

How to start a pos business in nigeria 2022 - ng job alerts

Conclusion

Starting a POS business in Nigeria is easy. This business is one of the many offline business ideas for young entrepreneurs or shop owners to make extra income and at the same time make payment easy for their customers.

If you want to start a POS business, now is the time. Good luck!

Oladoyin Falana

Oladoyin Falana, a graduate of OAU, is an SEO Specialist, and IT business developer. He is the owner and content editor of ngjobalerts.com, a platform that focuses on providing information on career, recruitment updates, exams, and admission updates, including general (How-to) information.
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