P OS (Point Of Sale) business is currently one of
the most lucrative businesses in the country right
now with a high-profit margin. It is a real
legitimate business with good returns. POS
businesses strive in places with limited banks
available for the people, most especially the rural
areas with little or no banks at all.
The POS business can also be referred to as an
agent banking business. These agents carry out
some important functions performed by financial
institutions in Nigeria.
Many transactions can be done with the POS
including Transfer of funds, Depositing funds,
Withdrawal of funds, payment of bills like GOTV,
Startimes, PHCN, and other bills.
In this post, we will be showing how to start a
POS business in Nigeria.
1. Get The Required Capital
Just with every other business, to start your pos
business will require a certain amount of capital.
How to start a pos business in Nigeria, is a very
delicate type of business where you would be
indirectly acting as a bank.
Therefore before the bank approves you to be an
agent, you must have passed the requirements
needed and the capital. The capital could involve
the cost of getting a shop and employing a
representative along with other expenses.
Basic requirements you must pass on how to
start a pos business in Nigeria include Your
business being registered with the Corporate
Affairs Commission as either any of the
following; Limited Liability Company, Sole
Proprietorship, Partnership, Cooperative Societies,
Public Entities.
Once you have the required capital and passed
other requirements then you are right on course
on how to start a pos business in Nigeria.
2. Choose The Bank You Want To
Work With
Literally, all banks in Nigeria accept pos agents
to carry out financial transactions on their behalf.
All that you need to do is to choose which bank
you will like to work with.
Once you have identified which bank you want to
be an agent for, next you need to approach them
and get their list of requirements. How to start a
pos business in Nigeria is quite once you've
gotten to this stage.
Most requirements needed by banks include
• Having a Valid means of identification e.g
Driver’s license, National ID card, International
passport, or voter’s card
• Bank Verification Number
• 2 recent 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 capital of N60,000
The bank will go into contract with you
immediately you provide all the above
requirements and you will subsequently sign
some documents.
With your capital available and all requirements
passed, you need to move to the next step on
how to start a pos business in Nigeria.
3. Get The Required Equipment
For Business
Once your application has been reviewed and
approached by the bank, they will then provide
you with the required equipment needed on how
to start a pos business in Nigeria.
With the necessary equipment in place, you are
almost ready for business.
The equipment that will be provided by the bank
includes,
• 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.
Without this equipment, you won't be able to
carry out your business operations. Therefore,
once you gotten approved by the bank, you
should proceed to get the above-required
equipment for full operation.
4. Get A Good Location
This is very important when it comes to opening
a pos business in Nigeria. The feature will
largely determine how profitable your business
be. You need to strategically choose a location
with limited banks and ATM. Also consider
places with relatively high human interaction,
places such as
• Markets
• Event Centers
• Schools (University campuses) etc
Once you've gotten your preferred location, next
you need to either rent a shop or simply create a
small shed with a porch for security reasons. You
need to make it a little wide to accommodate
large numbers of customers at a time.
Next, you need to invest a little in advertising,
you can either pay a designer to create a banner
for your business. Place the banner at the front
of your shop and nearly furnish and organize your
shop.
5. Render Your Pos Services
After going through all the above steps on how to
start a pos business in Nigeria, the last step
would simply be to start rendering your services
for profit. The process of operating the terminal
is very easy, as you have been already shown by
the bank. Many transactions can be carried out
including
• Deposition of funds
• Redrawals of funds
• Transfer of funds
• Payment of PHCN
• Payment of GOTv and other bills.
The bank will subsequently give you a
commission based on the number of
transactions you perform. You can also charge
customers a certain fee for every service you
render. On how to start a pos business in
Nigeria, you literally can make money through
different ways which will be communicated to
you by the bank.
In Conclusion
How to start a pos business in Nigeria is
currently gaining the attention of a lot of people
in the country due to the high-profit returns from
the business.
It serves as a major source of income for a lot
of people who operate the business. For you to
make a lot of money through this business, the
location of your shop is very important.
You need to set up your business in a place with
little to no banks at all. Also, look out for ATM.
Make sure it is also a very busy environment with
enough securities as you will be dealing with a
lot of cash.
That's why though it highly profitable, it is also
risky.
How to start a pos business in Nigeria is very
easy and straight forward once you can follow
through with the needed requirements. It is a very
lucrative business that I will advise you to start
today.
Read this post again, get the required capital, get
the required documents, follow required steps by
the bank, get the required equipment, set up your
shop, render your services, and make money.