How To Easily Start A Successful POS Business In Nigeria (2020).
The POS business in Nigeria has grown to become a huge investment.
From people who are looking for how to make quick payments, to people looking for withdrawals, the return-on-investment is really worth it.
Now, POS is an acronym for Point Of Sale.
Up until a few moments ago, it used to be in supermarkets, malls, bus stops and other places to facilitate payment.
Basically, it was meant to serve as an alternative to the use of cash, and help customers make payments directly with their atm cards.
However, things speedily took a turn and they turned out to be atm machines of their own.
When you go for a withdrawal, you are debited like normally done at the superstores and malls. The dealer will charge you a little, and give you the cash.
For instance, you pay just ₦100 to withdraw ₦1,000 at the POS and it rises with the currencies.
I put the just in italics because it is a keyword. When you charge a hundred customers ₦100 in a day, you have made ₦10,000 simply doing nothing.
Introduction To The POS Business In Nigeria
While I have done a brief intro to the business, we might need to discuss a little more things before you get started.
The POS business in Nigeria is more or less a replacement, and convenient option to the regular atms.
The business involves the withdrawal and transfer of funds, bill payments and sales of recharge cards.
Some of these bills include DSTV, GoTv, Startimes and electricity bills.
The POS machines are given to the dealers for a fee, and they in turn charge you a convenience fee to process your payments.
You might look at these charges as minute, but when accumulated from different users it really means a lot.
Some of the benefits of running a POS business include:
- Extra source of revenue
The POS business in Nigeria is a huge source of revenue. I wouldn’t even call it a side hustle since it can be making you a full living if well managed.
All you need to do is get a good and of course, secured location.
People like it the easy way, and that is just what you do. With the POS machines and dispensers spread everywhere, life just got a little big more interesting.
- Bank decongestion
With the POS machines spread all over, I most times do not visit the bank in weeks. They help me settle my transactions at minimal costs.
How To Start A POS Business In Nigeria
Now that we’re done with the intro, we’d be moving into how you can start a POS business in Nigeria.
The steps are very easy, and you can drop us a comment if you need further help.
- Find a host
A host is the financial institution that will help you process the payment.
There are a lot of them with very little differences in services.
I would suggest you contact (or spy on) other POS dealers in your neighborhood to know what they’re using.
This will help you avoid mistakes, since most of the reviews you’ll find about them online would be positive.
Although, I doubt if they have much differences. You can stick to anyone you love.
- Get a location for the POS business
Getting a location near a bank would be a great idea. This is because people who are frustrated from queuing in the bank, or probably discouraged might walk into your shop.
Security however is something you should never mess with. You’re dealing with cash, and a single robbery can send you back to square one.
- Purchase a POS machine
Some banks like First Bank will give you a free POS machine, but there are some requirements to be eligible.
Getting a POS machine would cost you something between ₦60,000 to ₦100,000 and there are some documents you might be required to provide.
- Begin the business
That’s all! It’s time to tell your friends to tell their friends who will tell more friends that there is a new POS guy in town.
You can split your rates a little to attract new customers and increase as soon as your business has taken a stand.
The POS business in Nigeria is here to stay, and really getting competitive with time.
Before you begin, you might have to weigh the possibilities of scaling through, and a good location matters.
Thanks a lot for reading along.
Don’t forget to drop us a comment and share with your friends.