POS Business in Nigeria: Here Is All You Need To Know Before You Start
POS business in Nigeria- POS business is an extension of the financial services you would enjoy from a bank, and what you would pay for that service extension is known as “Convenience fee”
POS mean– Point of service. It is a banking service that allows local debit cardholders make payment for goods and services mostly in a retail location. This service makes use of a POS machine in doing the transactions.
The service is also fast and reliable as it gives instant notification of payment and transactions. This is seen as customers receive alert whenever they do cash transfer with a POS agent. Here we have discuss step by step on how to start POS business in Nigeria, we have also analyst how profitable and why you should dive into this business in the main time.
POS business like any other business, involves proper preparation, market, capital, location and the business environment. If you have been looking for how to establish a POS business or you want to do a mobile ATM cash banking business in Nigeria, then follow these steps in this post.
1. MAKE RESEARCH
In every business, research is essential. Research is a process of acquiring detailed information of all the areas of business and using such information in maximizing the sales and profit of the business. Such a study helps you determine which service is most profitable or in demand.
For this reason, ensure you acquire the necessary information or knowledge for POS business before diving into it. This purpose will help you determine the opportunities and goals around the business.
2. GETTING A SHOP
In any enterprise, the business place is very consequential, due to the fact that it gives your business precision and easy recognition.
One good thing about this business (POS) is that it doesn’t require large space, a vendor or small place is just enough to start the business in.
When locating your POS shop, it’s best to situate it in a business and commercial area, so as to increase patronization and profit.
3. GOOD LOCATION
The location is very important in the POS business. You need to go for a business area that will increase in the number of your patronizers which will subsequently increase in your business profit. I prefer it should be an open vendor and should be visible and accessible for customers.
Before venturing into a POS business, you need to have a considerate capital, which should be about N50, 000-N100, 000. This money will cover for the shop, and will be for withdrawal payment and also for miscellaneous such as point of sale purchase.
5. GET YOUR POS MACHINE
Of course, there is no POS business if there’s no POS machine. First off, you need to know that a POS machine costs between N50,000 and N100,000, and you can either buy it outright, or acquire it for free from a bank.
If you’re looking to get it for free from a bank, you would have meet their set requirements; these include you making that bank your Host bank, and having an account with them.
The account usually has to be a current account, although some banks would only have you open a savings account.
To know which one of them would cut it for your bank, you should contact the bank’s customer support, or your account officer (if you already have one).
To then proceed with the acquisition of the POS machine form your bank, you would need to fill some documents, which is usually collected form your account officer. Some other banks give you the chance to download the document online,
IS POS BUSINESS IN NIGERIA PROFITABLE?
This business is a lucrative one to delve into. This is due to increase in the number of customers who are patronizing the services on a daily basis to carry out their transactions and transfers.
Why people are inclined to using this business is that it reduces bank stress. If you have ever gone to ATM post and queue for a long time extending to hours, it should tell you that this business is thriving well in transactions. People now see it as a good substitute to banks cash withdrawal and transfer.
The POS business is a business that has provided jobs to thousands of people especially young entrepreneurs and business people who venture into it. Another advantage of the POS business is that it requires less capital and will swiftly grow if you put all measures in place to start the business. Below are the steps to take in order to set up a successful POS business that will sequel be profit-driven.
BEST LOCATION TO START A POS BUSINESS
These are good places where you can establish your POS business in Nigeria;
- Where there are an iota of banks and financial institutions.
- University and college campuses will be a good advantage in establishing your POS outlet, because of lot of school transaction students engage.
- Places Where ATM are always crowded or in places where there are shortages of banks/ATM post.
- POS business thrives well close to markets and banks because of the much transactions carried out in these places.
- In populous business premises like supermarkets, malls and large vendors.
WHY YOU SHOULD START POS BUSINESS IN NIGERIA
POS business has a lot of positive advantages which it gives to the individual business and the patronizes as a whole, they include:
- Creation of jobs.
- Helping in Bank decongestion by creating a medium for transfers.
- Opening business opportunities for entrepreneurs.
- Reducing bank costs and extending banking services to a wider range for customers.
- POS services also help to increased account acquisition for the banks.
HOW TO GET A POS MACHINE IN NIGERIA
Virtually all Nigerian banks allow agent banking services. So, as soon as you decide on the bank of your choice, the next thing is to approach the bank and get the details of their requirement. The CBN guide allows being an agent for as many banks as you can serve.
You will need to fill some documents/agreement forms on the transaction conditions. Then, the bank reviews the application in line with CBN, internal criteria, and enters into an agreement with you, if you meet all criteria.
Some of the required documents include;
- Valid means of identification e.g Driver’s license, National ID card, International passport or voter’s card.
- 2 passport photographs
- 2 current account references
- Evidence of business registration (CAC Certificate)
- Tax Identification Number (TIN)
- A minimum working capital of N50,000
A POS business in Nigeria needs to be located in places where there are no bank branches or busy environments with enough security measures in place. You are sure to increase your daily revenue if you get everything right.