How to Start a Profitable POS Business in Nigeria
Starting a POS (point of sale) business in Nigeria is one of the many ways of making money or avenues of making money in Nigeria, beside the mini importation business in Nigeria. Of all business types, it is somewhat difficult finding someone to teach you how to start a POS business in Nigeria. I mean, it is one thing being a serial hustler in Nigeria and it is another getting enlightened on life-changing information that would catapult your earnings. Who doesn’t want to be like Aliko Dangote? Lol!
However, in this post, we have not only simplified the process but also detailed it such that you can learn and have a general idea of what it would take to start a POS business in Nigeria.
POS is short for point of sale or point of service. This word is relevant to retail shops and stores where there’s a check-in counter/cashier through which all the customers have to go, in order to pay for the things they have bought. With the POS machine, you can:
- Transfer Funds
- Withdraw Funds
- Network top-ups, recharge cards sale
- Bill payments such as GOtv, DStv, e.t.c…
In order to get started with the POS business in Nigeria, you need to get started on a couple of steps we have listed below. Please note that it is important that you have a bank account with any bank in Nigeria. We suggest going through a list of our top ten best banks in Nigeria to see if your preferred bank is listed. You might also need to decide whether or not you want to register a business name to deal with your business as a business and not necessarily an individual. So how do you get started?
Steps to Starting a POS Business in Nigeria
The major step is acquiring a POS machine from your bank. In order to get a free POS from any bank in Nigeria, you must have an account with the bank. The bank providing the POS will however earn some little, fixed commission charge for every one of your transactions completed on the POS machine.
How to get a POS machine from banks in Nigeria
The application form requests the full business name, the business owner account number, the business email address, phone numbers and other minor details, and processing takes 72 hours. You could email the form to [email protected] and also copy [email protected]. [email protected] is also the contact e-mail address to note if you have any problems.
The business owner will then be required to sign a POS agreement document with the bank.
In Guaranty Trust Bank, only current account owners qualify to receive the POS machine. Account owners must have held their accounts also for at least six months, just like Zenith Bank. The form is then mailed to [email protected] or submitted to the account officer. The business owner is also required to sign the agreement form.
At Polaris Bank, the POS system is being granted with a savings account as far as the relationship officer approved the request. Business owners also only need to fill the application form and the agreement
- There is a charge of 0.75% on successful transactions which is deducted from completed transactions before being credited to your account.
- Visit your Account Officer for inquiry
- Fill the documents/ Agreement Form given to you, each bank has its conditions
After submission of form, upon approval you’ll get a notice from your account officer not long after 14 days and delivered to the business address indicated on the form.
Also Read: Cost of Building a House in Nigeria
POS System Dealers in Nigeria
You can as well purchase from POS system dealers around you, In case you don’t prefer the POS system from the bank due to their conditions, you can purchase from POS system dealers. These POS system dealers sell their POS with a licensed CBN PTSP (Payment Terminal Service Provider).
NIBSS is the sole catalyst of inter-operability and aggregation in the payments industry, some of them include:
- BRINQ AFRICA PAYMENT SOLUTION LTD
- CITISERVE NIGERIA LTD
- COMPUTER WAREHOUSE GROUP
- EASYFUEL LTD
- FIDESIC NIGERIA LTD
- GLOBAL ACCELEREX
- GLOBASURE TECHNOLOGIES LIMITED
- GRAND TOWERS PLC
- INTERSWITCH LIMITED
- ITEX INTEGRATED SERVICES
- NETOP BUSINESS SYSTEM LIMITED
- PAYMASTER LTD
2. Preferred Location
Where to establish your POS business is very important too and determines how much of profits you’d be making after each day transactions if you need to set up a shop closely to a place you’d get more customers; go ahead.
- Local Areas; places like this will have less number of banks or financial institutions as such establishing a POS business will be a great success.
- ATM centers that are usually crowded or in places where there isn’t much banks/ATM post. Nigerians are always in haste and not everyone likes queuing up at ATM post and when they see an alternative they gladly accept not minding the charges.
- Sequentially close to markets or Malls, Sometimes at ATM post, it will show insufficient fund and at that time most people wanting to make use of money will prefer making use of your services
It depends on the services you want to render and the kind of POS you want to acquire. The cost of POS machine ranges from N90,000 – N100,000, you can start small then when the demands for your services increase; you also increase the capacity of your capital.
Collecting the POS system from banks and using it for your business transactions such as supermarkets, you have nothing to pay but meet-up with the conditions.
So what are you waiting for? Start your POS business as soon as you can and start earning around N5,000 daily. It is a great business idea for you as an entrepreneur. It’s a lucrative way of getting passive income.