In Nigeria, where access to traditional banking services can be challenging, Point of Sale (POS) agents play a vital role in bridging the financial inclusion gap.
Starting a POS business presents a promising venture for entrepreneurs seeking to enter the realm of financial technology.
Here’s a comprehensive guide on how to embark on this entrepreneurial journey, covering essential aspects such as capital requirements, profit potential, and general guidelines for success.
As a POS agent, you provide customers with access to basic banking services like cash withdrawals, deposits, and bill payments etc.
POS agent can be a lucrative business opportunity. You earn commissions on transactions, making it a sustainable source of income.
This will make you to become a financial lifeline for your community, helping people access funds and manage their finances conveniently.
And this is also an advantage for existing business owners, adding POS services can attract more customers and increase foot traffic to your establishment.
Register your business:
Registering your business name with the CAC will give your POS business more credibility over other POS businesses that are operating without registration.
This will also give you access to business opportunities such as grants, government loans, etc.
Selecting the right agency banking
You need to select the right agency banking for you POS business, the likes of Commercial banks, Firstmonie, Zenith bank, and others. Microfinance and FinTech institutions also offer POS services.
Apply for your POS
Apply for your POS machine with as low as 40,000 naira depend on company you are applying from you will get your POS machine within 24 -72 hours.
You will need to meet their requirements
You’ll need the following:
A registered business or a suitable location.
A valid means of identification.
A working smartphone.
Capital for initial float.
Registration and Training
Enroll with your chosen agency banking partner. They will provide training on operating the POS terminal and the basics of financial transactions.
Find a good location
Conduct location survey:A location survey is important for you to know your competition and your potential customers. You should consider these factors in your location survey:
Most people will not use a POS when they have banks or ATMs near them. So you need need to choose a location faraway from banks and ATM units.
Some POS agent even choose their location closest to the bank, as they target bank’s customers, where their is long queue at the ATM and when there is Network issues.
Choosing a location that already has too many POS centres could make it hard for you to make a good profit. It is advisable to set up your POS business in an area that has a good traffic of people but no POS centre or at the least, very few.
Security:
Ask questions about the location that bothers on security. You’ll be dealing with physical cash with your POS business, so it is essential to know if the area is safe for you or not.
Network:
It’s frustrating for both you and your customers if you are constantly having network issues with your POS. Your customers won’t get satisfaction and you, on the other hand, can’t make money. So, make sure that the location you choose has a good network to ensure smooth transactions.
Some location ideas for your POS business in Nigeria are markets, residential areas with middle or low income earners, near supermarkets, close to motor parks, etc.
Get a kiosk or shop
People commonly use small kiosks or umbrellas for POS businesses in Nigeria. You can also use Kiosks for your POS unit (s) but if you’re going for a large scale POS business, then a shop is ideal.
Start-up Capital:
This is an integral part of your planning. The amount of money you can raise determines the scale of your business. For instance, to set up a POS unit, you need between ₦50,000 – ₦100,000. with each successful transaction, you earn commissions.
POS market in Nigeria is attractive. You can make between ₦10,000 – ₦30, 000 daily from just one unit through bank commissions and transaction fees. And, you can have as much as 5 – 10 payment points at different locations at the same time. With this cash-flow, it’s a reliable venture.
